1.5 – Study Questions

1.5 – Study Questions

Donald Bankhead

Module 1

1.5 – Study Questions

  1. Discuss the concept of transportation demand in relation to derived demand and its importance in the area of transportation for shippers and carriers. Provide at least two examples. Explain the difference between elastic and inelastic demand. The aggregate demand for transportation service is said to be inelastic while the demand for an individual mode or carrier is often elastic. Explain why this is important to carriers and shippers and why the two concepts are important to transportation demand.

When referring to issues in relation to transportation demand we look at the type of travel different individuals will use under specific conditions. The main consideration will involve the consequences that might be faced in a process that might we consider this specific demands that would come up. The concept helps a lot in the area that involves the transportation and shippers in a lot of ways. That is because it helps limit the occurrences of losses in time to time operation. We get to see that the process is systematic since we get to see some specific patterns in terms of transportation and therefore come up with the best mode of transportation to be carried on and in particular kinds of goods and in the most appropriate way possible. We therefore establish the right mode of packaging as well as shipping products that ensures the goods reach their destination in the safest way possible. We can look at the packaging procedure in terms of the durability and how certain the products would be if transported with a specific transportation mode. We can also see different patterns in the transportation field that sees to it we have the best and most effective transportation mode with relation to the product we are transporting (Coyle, Novack, Gibson & Bardi, 2011).

Elastic demand is a process that involves the measure of how much the quantity demanded will be changed in a process that any other factor gets to change. Inelastic demand on the other hand is a process whose percentage changes in less than a change inpercentage of a price of a particular product.  We can see a number of reasons as to why the aggregate demand of transportation services are said to be inelastic. That is because the concept of carriage services ensures that we have a number of issues taken care of in terms of operations as well as all the services and the risk that would come with it. The process works as the premiums given out in the insurance companies in the anticipation of a number of losses that would come about therefore ensuring we have no deviation. Demand for Individual mode on the other hand specifies that one suffers all the cost that would arise during the whole process and therefore making it elastic. The concepts applies very well to carriers and shippers in general Coyle, J. J., Novack, R. A., Gibson, B. J., & Bardi, E. J. (2011).

  • Discuss the relationship between improved transportation, land values, benefits, and possible associated environmental costs. Provide examples of potential positive, as well as negative impacts.

Land is seen to be an important factor in helping in a lot of concepts in the transport world. That is because it is the center of all transport related concepts.  Each and every transport mode is seen to start and end from land and therefore showing how beneficial it is in this whole process. We can also see that land offers storage of a number of goods that are in transit and therefore preserve the fact that they need to maintain quality. Conversely we can see a lot of disadvantages come on in the following process. That will involve the fact that we have lots of pollution on land considering this transportation media and other related concepts. That therefore shows how that comes out as very disadvantageous.

  • Transportation policies directing and promoting transportation safety reliability, and national security have been in place on the federal level since 1887. Research two federal agencies and discuss specific regulations and public policy enforced today. From a point of view of providers and transportation users, discuss the advantages and disadvantages of increasing regulations relating to transportation safety and security. Substantiate your discussion with specific examples and provide links to your sources.

We have different forms of policies in the various countries that see to it that the transportation concept is well looked at. They both see to it that the process that governs transportation alongside the safety of products is well looked at and maintained in the associated process. We have some variation when it comes to different countries and all that is meant to be achieved.  The process ensures that we have proper communication patterns well set and therefore help in the safety of both goods and people that help the transportations process Coyle, J. J., Novack, R. A., Gibson, B. J., & Bardi, E. J. (2011).

  • Discuss value-of-service pricing and cost-of-service pricing. Expand your answer with a discussion of how the two concepts are related and provide relevant examples to substantiate your answer. Be sure to provide references. 

When referring to the cost of service pricing we look at a very wide market consideration. The process is seen to involve the fact that we have aspects I consideration such as the market conditions, trade margins, input cost among others being looked at in the best was possible. Value based pricing is a pricing mode that looks at the fact that we have different values and a price set on the variation of this different factors to specify the concepts set on. Both of this pricing process have specific considerations as they highly concentrate on particular products and there properties therefore giving them respective prices.


 Coyle, J. J., Novack, R. A., Gibson, B. J., & Bardi, E. J. (2011). Transportation: A supply chain perspective (7e). Mason, Ohio: Cengage. ISBN: 978-0-324-78919-5.