LG312 Park University Unit 4 CH7 Transportation and Distribution Systems HW Ok, so professor is being super confusing. He wants us to answers homework ques

LG312 Park University Unit 4 CH7 Transportation and Distribution Systems HW Ok, so professor is being super confusing. He wants us to answers homework questions but not by rewriting the questions and just leading into the answers. Here is what he said:” Most of you are doing what students normally do, and retype the HW questions before providing your input. I highly recommend you not do this! Look at the HW as “mini-term papers” and restate the question as a lead-in to your narrative response.
For example, HW1, Q1: Transportation has sometimes been described as the glue that holds global supply chains together. What is the meaning of this statement and do you agree? Why or why not?
“Restate this in your own words, but something like this: Transportation is described as the “glue” that holds supply chains together, The reasons for this are …..”
This way you have a proper narrative, term paper-style lead in to the explain the question and your feelings as to why it is, or is not, relevant. I hope you see where I’m going here — I want you to use these assignments to really sharpen your writing skills and voicing your understanding/assimilation of the material.
Use other sources and personal experiences/observations rather than just spewing forth stuff from the text. SHOW me you understand what the question is asking and how you feel about it.”So I have attached a copy of what I submitted that he rejected and stated that it needs to be rewritten. I have also attached a copy of an example he sent out. Please take a look at it and rewrite my answers to the correct format. Unit 4 Homework
Chapter 7 Study Questions
1. Discuss the ways in which air carriers compete with each other. How have regulatory changes
affected this competition?
The air cargo industry was deregulated in the late 1970s, which permitted them to be competitive in all
aspects of the industry. However, the competition did not lead to an increase in the number of flights
and number of seat miles. Intramodal competition is fierce due to expansion of marker coverage. Many
airlines compete to fill empty seats, and create deflation of prices below the rate of inflation of the
general economy. The fare wars have caused weaker carriers to leave the business, and created
economies of scale for the remaining airlines. Major factors of differentiation of services addressed by
competing airlines, aside from price, are frequency and timing of flights and amenities for both in flight
and out of flight, such as frequent flier programs. Freight carriers have differentiated service by owning
a ground fleet or partnering with intermodal services to provide door to door services.
3. Discuss the length of haul and carrying capacity of the air carriers. Explain how thy both favor and
hinder air carriers from a competitive standpoint.
For passenger movement over long distance air carriers have an advantage over those other modes
because their price is competitive and their distance to speed is higher than other modes. However, for
shorter distances that can be driven in four hours, the air carrier cannot compete when time in terminal
is considered; that may change as fuel expense increase because the economy of scale exists for air, but
not other modes of passenger transportation.
4. What is the role of government in air transportation? Include both economic and safety regulations
in your answer.
The government is involved in doling out routes for international flights because of economic concerns
between international agreements. Despite the capacity for economy of scale and economy of density,
airlines receive government subsidies to provide services to areas that otherwise would not have
service. The creation of the Office of Homeland Security created government involvement in monitoring
and managing safety and security of air carrier operations and our borders. Other agencies concerned
with safety in the industry include the Transportation Security Administration and Federal Aviation
Association, including concerns of air traffic control, and the safety and condition of employees and
10. What is the cost structure of the air industry? How does it compare with other modes? How does
this affect pricing, particularly for passengers? Be sure your answer includes examples from either
advertising or the internet.
Like the motor industry, the air transport industry has high variable and low fixed cost structures. The
low fixed costs of the air industry are attributable to similar reasons for the low fixed costs of the motor
industry; government investments and operations occur in both public roadways and airways. The
variable costs compose about 80% of all costs and allow the airlines to be flexible in their cost cutting
strategies and thus stay in margins of profit and a market that competes primarily for people-passengers
by keeping passenger seat prices relatively low.
Chapter 8 Study Questions
2. The pipeline industry has approximately 100 companies, as compared to the motor carrier industry
with more than 50K. What are the underlying economic causes for this difference, given the fact that
they both carry approximately the same volume of intercity ton-miles?
The carry approximately the same volume because primarily only liquid and gaseous state of matter is
transported through the pipelines. Apart from these, inert and stable chemicals also transported
through pipelines. Pipeline transport mainly deals with crude and refined petroleum and by products,
natural gas, bio fuels and other fluid produced in large quantities at the production site with need to be
urgently transferred to a different location. The construction of pipelines is costly and so is the
maintenance. The three primary types of pipelines are Gathering Lines and Refined Product Pipelines.
Only voluminous fluid of a same composition can be transported at one time. The pipelines are
permanent structure over a route and the route cannot be changed at will. It offers high fixed costs with
low variable. Motor carrier can transport any type of goods to any place the roadway is available. It
offers low fixed cost with high variable. In spite of the differences in the number of companies, they
both are equally important for the role and purpose they each serve.
6. Water carriers played a dominant role in the transportation system of the United States in the 18th
and 19th centuries. Why has their relative position declined during the 20th century? Are they still an
important component of the total transportation system? Why or why not?
Once playing a dominant role in the transportation industry, the water carriers declined in position as it
entered the 20th century. Water transportation ton miles declined 29% between 1996 and 2006. As th
water transportation industry lost ground, so did the mostly manufacturing economy; the 20th economy
is one of service and technology industries. Another factor affecting the decline in the water carrier
industry is due to companies focused on supply chain management and logistics moving to competing
modes that offer better services. Despite the decline, the water carrier’s low cost industry is still
important to many shippers in the United States who want to remain competitive second only to rail;
the water carrier industry is still one of the most energy efficient forms of transportation. Finally, the
water carrier industry is significantly responsible for shipping 27% of the petroleum and 29% of the coal
in the United States.
7. What would be the impact of higher fuel charges on the water carrier industry? Provide a rational
or raising their user charges.
The water carrier industry cost structure is one with very low fixed costs and high variable costs. Despite
being the second most fuel efficient form of carrier transportation, the bulk of variable costs is in fuel.
The only costs to which the carrier can defray the fuel increases are the user fees for lock and dock fees
and fuel taxes.
9. Intermodal competition is more intense than intramodal competition for water carriers. Why?
There are relatively few carriers in the water transportation industry. Intramodal competition is limited,
and following suit with changes among water carriers is almost predictable, there is no incentive to
compete within the industry. On the other hand, intermodal water carriers move bulk dry and liquid
commodities and therefore compete with rail and pipeline carriers.
The U.S. Department of Transportation is the main organization at the head of organizing and managing
our nation’s transportation systems. Their mission statement defines their goal to provide the safest,
most efficient means of transportation possible in our modern day. The United States is interconnected
by roads, waterways, railroads, and open skies; all of these things are domain of the U.S. DOT. Although
the DOT isn’t specifically responsible with the creation and implementation of new and improved means
of transporting both people and cargo throughout the U.S, they are responsible for generating and
developing policies that govern the use and guidelines associated with our national systems in place.
There are numerous operating administrations that fall under the U.S. DOT, 13 to be exact. These
administrations are compartmentalized in order that the following areas of focus may be effectively
employed: automobiles, aviation, bicycles and pedestrians, public transit, pipelines and hazmat,
railroads, trucking and motor-coaches, maritime and waterways, and roadways and bridges. The 13
operating administrations are each tasked with handling their own fundamental category relating to
To begin, the main group and majority of administrations relate with land or road transportation and
consist of the FHWA, the FMCSA, the FRA, the FTA, the NHTSA, and the PHMSA. The Federal Highway
Administration is in place to assist state and local governments with developing, building, and
maintaining the U.S. highway system; in addition, the National Highway Traffic Safety Administration
solely relates to highway transportation but with more focus on the vehicles traveling on them. The
Federal Motor Carrier Safety Administration carries a sole focus of reducing the amount of deaths and
injuries that involve crashes with large trucks and buses (US DOT). The Federal Railroad Administration
regulates all transportation that involves trains whether they are moving cargo or people. The Federal
Transit Administration assists with most forms of public transportation commonly found in large cities
including subway, trolley, buses, and even ferries. Lastly, the Pipeline and Hazardous Materials Safety
Administration is established to safely manage the transportation of energy, fuels, and other
environmentally hazardous materials our economy is so dependent on today (US DOT).
Moving on from road, land, and solid ground, the other two main categories of transportation are by air
and water. The Maritime Administration is the operating force behind all of the United States’ waterbased transportation including vessel freight and coastal port functions; in addition to MARAD regarding
water transportation, the SLSDC was created solely to utilize and maintain the Saint Lawrence Seaway
located between Lake Erie and the Port of Montreal (US DOT). Now last but most certainly not least is
the Federal Aviation Administration which essentially manages anything and everything involved with
air traffic whether it is drones buzzing around in town or jets flying 40,000 feet above.
The final four operating agencies deal with subjects relating to transportation, however, they operate
with a more all-encompassing approach. The Office of Inspector General acts as the quality assurance
branch to enforce regulations, conduct inspections, and maintain uniform standards throughout the U.S.
Department of Transportation programs. The Office of the Secretary deals with a majority of
transportation policy and legislation which establishes guidelines most other offices must abide by (US
DOT). The Bureau of Transportation Statistics provides the US DOT with logistical analysis, data
collection, and even provides recommendations on how improvements in efficiency can be made. The
final operating administration under US DOT is the VOLPE center which is responsible for research
and development of U.S. transportation so they lead the implementation of improvements and
innovation as well as measure the results (US DOT).
US Department of Transportation. (n.d.). Retrieved from https://www.transportation.gov/.

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