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A firm that manufactures medical research supplies delivers them to hospitals and medical centers around the country. The deliveries can be made using Less-than-Truck-load trucks, air express, private truck fleet, and UPS. What factors should be considered in selecting among these alternatives?
Note that the trucking industry consists of two major segments - truckload (TL) and less than truckload (LTL). The TL segment is characterized by shipments of 10,000 pounds or more. LTL operations are priced to encourage shipments in small lots, usually less than half a TL. LTL shipments usually take advantage of freight consolidation and take longer than TL shipments.
What risks do managers take when they view their firm's performance solely in financial terms?
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A more reliable trucking firm promises delivery exactly in six days, but for a 5 % higher cost. What analysis should the manufacturer decide whether or not to switch?
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What issues need to be considered when deciding to change levels of capacity? How is this decision taken in your or well known industry.
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