Transportation Key Terms

Module 1
Chapter Key Terms and Study Questions

Chapter 1 Key Terms

Business logistics – The process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.

Deregulation – The removal or simplification of government rules and regulations that control or limit a company’s ability to act.

Globalization – Recognition that commercial activity now spans the world and that many firms buy and sell throughout the world.

Chapter 2 Key Terms

Economies of scale – As production of a good increases, the cost of producing each additional unit falls.

Eminent domain – The right of the state to take private property for public use.

Chapter 1 Study Questions

1.   What are the major forces or external factors that have impacted our economy during the latter part of the 20th and early part of the 21st centuries?   How has each of these factors influenced companies as well as their respective supply chains?   Which of these factors do you feel is the most important for a computer company?   Why?

The environment surrounding the U.S. economy and various global economies, has experience a rapid change during the latter part of the 20th and early part of the 21st centuries.   This change is largely due to the need of companies to increase efficiency and effectiveness to remain fundamentally competitive.   Change within these companies is driven by an array of external factors to include globalization, technology, supply chain integration and consolidation, consumer empowerment, and government regulation and policy.   Globalization is of significant importance due to an increase in the importance of transportation because of the longer shipping distances and transit times, as well as increasing risk. Technology can directly enhance the effectiveness and efficiency of a company’s...