Transportation Economics

Transportation Economics
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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 activitie…