Solution for Transportation: A Global Supply Chain Perspective 8th Edition Chapter 14, Problem 1

by John J. Coyle, Robert A. Novack, Brian Gibson, Edward J. Bardi
150 Solutions 14 Chapters 38776 Studied ISBN: 9781133592969 Supply Chain Management 5 (1)

Chapter 14, Problem 1 : 1. There have been an increasing number of...

1. There have been an increasing number of editorials in newspapers and magazines about their concern over transport capacity and infrastructure. What is the nature of this issue?  Why is it such a problem?  How can it be resolved?

Step-By-Step Solution

1. Basically there has been an exponential increase in the demand for the movement of freight. Some of this growth is the result of economic growth in the U.S. economy. However, there is no question that the globalization of our economy during the last several decades has been a major factor in the demand growth because of the increase in the level of imports as well as exports. Unfortunately, the maintenance and improvement in the transportation infrastructure has not kept pace with the increased demand. Also, the capacity of the transportation carriers has not matched the demand growth during the peak years. The solution is primarily finding sufficient public and private funds to invest in improving and maintaining the total system. Increasing user charges (fuel tax, license fees, tolls, etc.) is not a popular option. The solution will require both public and private funding and some behavioral changes among users of the transportation system.

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