Transportation Economics

Transportation Economics
Student’s Name
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Transportation Economics
Total cost models have some degree of unreliability. Therefore, the category of information contributes to inaccuracy in an organization. The data that populate the total cost are classified into four categories with letter ‘A”. The categories and how they affect the reliability of the total cost are discussed.
The first category is Actual. It presents the highest degree of reliability. Examples of the actual cost data are unit prices, tariffs, and transportation charges.
The Approximation is the second category of the total cost model. It is also known as the averages category. The approximation category in an organization addresses the challenge of identifying the true cost of items which could outweigh the actual cost ADDIN CSL_CITATION {“citationItems”:[{“id”:”ITEM-1″,”itemData”:{“DOI”:”10.1109/ICEMMS.2010.5563408″,”ISBN”:”9781424460625″,”ISSN”:”10591478″,”PMID”:”17186641″,”abstract”:”There are two broad categories of risk affecting supply chain design and management: (1) risks arising from the problems of coordinating supply and demand, and (2) risks arising from disruptions to normal activities. This paper is concerned with the second category of risks, which may arise from natural disasters, from strikes and economic disruptions, and from acts of purposeful agents, including terrorists. The paper provides a conceptual framework that reflects the joint activities of risk assessment and risk mitigation that are fundamental to disruption risk management in supply chains.

We then consider empirical results from a rich data set covering the period 1995–2000 on accidents in the U.S. Chemical Industry. Based on these results and other literature, we discuss the implications for the design of management systems intended to cope with supply chain disruption risks”,”author”:[{“dropping-particle”:””,”family”:”Li”,”given”:”Feng”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Hou”,”given”:”Jun Qi”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Xu”,”given”:”Dao Ming”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””}],”container-title”:”Proceedings – 2010 IEEE International Conference on Emergency Management and Management Sciences, ICEMMS 2010″,”id”:”ITEM-1″,”issued”:{“date-parts”:[[“2010″]]},”title”:”Managing disruption risks in supply chain”,”type”:”paper-conference”},”uris”:[“http://www.mendeley.com/documents/?uuid=8f5def32-90d9-4912-870a-70845f5d5349″]}],”mendeley”:{“formattedCitation”:”(Li, Hou, & Xu, 2010)”,”plainTextFormattedCitation”:”(Li, Hou, & Xu, 2010)”,”previouslyFormattedCitation”:”(Li, Hou, & Xu, 2010)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Li, Hou, & Xu, 2010). The dispersion of the true cost creates concern on the average charges of the overestimated or underestimated the actual cost.
The least reliable total cost category is the Assumption category. It comes from the external sources of the total costs. The organizations employing the external assumption category make the model highly suspected. As a result, the ordering cost is reduced thus every time the organization issues a material order, the charges on the item rely on the organization’s assumptions.
Absent is the fourth category of the total cost model. It addresses the challenge in times where the cost to collect data seems to outweigh the value of the data ADDIN CSL_CITATION {“citationItems”:[{“id”:”ITEM-1″,”itemData”:{“DOI”:”10.1108/09600030810866986″,”ISBN”:”0960-0035″,”ISSN”:”09600035″,”PMID”:”33382304″,”abstract”:”Purpose – Global supply chains are more risky than domestic supply chains due to numerous links interconnecting a wide network of firms. These links are prone to disruptions, bankruptcies, breakdowns, macroeconomic and political changes, and disasters leading to higher risks and making risk management difficult. The purpose of this paper is to explore the phenomenon of risk management and risk management strategies in global supply chains. Design/methodology/approach – This paper is based on an extensive literature review and a qualitative study comprising 14 in-depth interviews and a focus group meeting with senior supply chain executives. Findings – The study provides insights into the applicability of six risk management strategies with respect to environmental conditions and the role of three moderators. Research limitations/implications – The model is developed in a global manufacturing supply chain context. It should be tested in other contexts and with other methods to provide generalizability. The study takes a much needed step toward building a theory of risk management in global supply chains, which opens important future research directions. Practical implications – This research provides direction to managers for choosing risk management strategies based on the global supply chain environment. Moderators have practical implications for global supply chain managers. Originality/value – The paper addresses an identified gap in the literature for selecting risk management strategies in global supply chains. It employs grounded theory, a methodology appropriate for theory-building, to explore a phenomenon with an inadequate theoretical base. © Emerald Group Publishing Limited.”,”author”:[{“dropping-particle”:””,”family”:”Manuj”,”given”:”Ila”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””},{“dropping-particle”:””,”family”:”Mentzer”,”given”:”John T.”,”non-dropping-particle”:””,”parse-names”:false,”suffix”:””}],”container-title”:”International Journal of Physical Distribution and Logistics Management”,”id”:”ITEM-1″,”issued”:{“date-parts”:[[“2008″]]},”title”:”Global supply chain risk management strategies”,”type”:”article-journal”},”uris”:[“http://www.mendeley.com/documents/?uuid=a6b450cb-1dca-43c0-beaa-81d55505c4a9″]}],”mendeley”:{“formattedCitation”:”(Manuj & Mentzer, 2008)”,”plainTextFormattedCitation”:”(Manuj & Mentzer, 2008)”,”previouslyFormattedCitation”:”(Manuj & Mentzer, 2008)”},”properties”:{“noteIndex”:0},”schema”:”https://github.com/citation-style-language/schema/raw/master/csl-citation.json”}(Manuj & Mentzer, 2008). The value of the possible data that seems overwhelming becomes effective in relation to the total cost models. Therefore, the total cost model will arrive at a confidence interval that is associated with the cost estimates of the items.
References
ADDIN Mendeley Bibliography CSL_BIBLIOGRAPHY Li, F., Hou, J. Q., & Xu, D. M. (2010). Managing disruption risks in the supply chain. In Proceedings – 2010 IEEE International Conference on Emergency Management and Management Sciences, ICEMMS 2010. https://doi.org/10.1109/ICEMMS.2010.5563408
Manoj, I., & Mentzer, J. T. (2008). Global supply chain risk management strategies. International Journal of Physical Distribution and Logistics Management. https://doi.org/10.1108/09600030810866986