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Chapter 2
TRANSPORTATION AND THE ECONOMY
Chapter Objectives:
1. Understand the importance of transportation to the economic vitality of the United States and
countries or regions and why Transportation Is probably our most important industry.
2. Appreciate the role and contributions of transportation systems to the economic development of
countries or regions.
3. Understand how transportation of goods and people impacts the social and political dimensions of an
economy or region.
4. Appreciate the historical role of transportation from an economic, social and political perspective.
5. Discuss the impact that improved transportation has upon land values and economic development.
6. Understand how transportation affects the price of goods, services and market areas.
7. Appreciate the function and scope of transportation in advanced and developed economies.
Chapter Overview
Transportation plays a vital role in the development of the economy of a country and the ability to
sustain this development depends upon continuing improvement of the total transportation system and
the associated infrastructure. This chapter explores the role, contributions and importance of
transportation systems to the economic political and social dimensions of a country or region. Special
attention is paid to the impact of the improved transportation upon land values and the prices of goods
and services.
The benefits of improved transportation are easier to comprehend when they can be viewed them from a
macro perspective which is one of the objectives of this chapter. We can more fully appreciate the
overall significance and impact of improved transport if we take this more holistic view.
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Historical Significance
The growth of civilizations is directly associated with the development of transportation systems. A
transportation system can help create a social structure and a political system with more unified political
opinions, cultural ideals and educational methods. The economies of the world tend to grow in tandem
with their transportation networks. Transportation has also played a major role historically and still does
currently in National Defense. As we look to the future, the transportations systems of the world will be
economically, socially and politically challenged.
Economic Significance
Transportation systems have a major impact upon population patterns and urban economic development.
The transportation services of a city are the “life support system” of the citizens. The transportation
service adds value to the goods shipped and expands the potential market areas as demonstrated on pp.
44-45. Transportation systems help determines the economic value of products. Transportation also
plays an important role in the movement of people.
The freight intercity modal split is dominated by motor carriers which carried about 45% of the total ton-miles in
2011. The railroads declined in relative importance after World War II with the improvement in the highway
system and the increased recognition of the importance of service to the total cost of transportation to the
shipper. The relative share for motor carriers of the total ton-miles moved has remained relatively stable since
2000, but the competition between rail and motor carriers has intensified with changes in fuel prices and
improvements of the service of railroads and intermodal movements. Air transport of freight has become more
visible but they still only carry a small percentage of the total ton-miles.
As stated previously, transportation can spur economic development by providing mobility and lower landed
cost to production factors which in turn can provide economies of scale and increased efficiency. The overall
importance and significance of improved transportation needs to be understood and appreciated.
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Demand Elasticity
Demand elasticity refers to the sensitivity of customers to changes in price. If demand is elastic or sensitive to
changes in price, a decrease in price or rates will increase demand or sales of a product or service, but an
increase in price will have the opposite effect on demand or sales. Conversely, if demand is not sensitive to price
changes, it is described as inelastic. On an aggregate basis, the demand for transportation is usually inelastic
since freight costs are usually a small percentage of total landed cost. However, in specific market areas
between specific shipping points where there is intermodal competition, the demand for each of the carriers
competing for the traffic tend to be elastic or sensitive to price changes. This phenomenon is not unusual even
for the demand for products. It should be noted that changes in service levels of carriers, especially transit time
and reliability, can impact demand even when there is no change in rates because the improved service level
impacts inventory holding cost and other logistics costs.
The demand for freight transportation is usually dependent on the demand for a product in another location
which can be described as a derived demand or secondary demand. Derived demand is not unique to transport
since the demand for many raw materials and product parts are dependent upon the demand for a finished
product. Figure 2-1 on page 43 illustrates the basic nature of derived demand. Value of the service is an
important consideration for product demand which considers the impact of transportation costs and service on
the demand for the product in a market area since it impacts landed costs. If the landed cost for a product is
lower than the landed cost of other sources it will impact the demand for the product and consequently, the
demand for the related transportation service (see Figures 2-2 and 2-3 ). The landed cost also impacts the extent
of the market area (potential sales) for a product.
As indicated above, service demands affect the cost of the service provided and the landed cost. The
transportation service characteristics that are usually most important and discussed in this chapter and the
modal chapters include transit time, reliability, accessibility, capability, and security:
TRANSIT TIME can impact the inventory levels held by sellers and buyers. Usually, the longer the transit time the
higher the inventory levels required and the higher the related inventory carrying costs and potential stock out
costs.
RELIABILITY refers to the consistency of the expected transit time of carriers. It impacts safety stock levels and
stock out costs. Safety stock increases the level of inventory required and consequently, inventory holding cost.
Sock out cost is the cost of not meeting customer demand which can be the profit on the sale of the proct or the
longer run cost associated with losing the customer.
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The Baharia (sailors) on board said, ‘You Washenzi (pagans, bush
people) from the interior, you will vomit yourselves to death.’ But we
came safe to Lindi after all, and said (to the sailors): ‘You mocked at
God (by saying that we should die), but we came safe to land.’”
This love of singing is characteristic of the Wanyamwezi. In the
course of my enforced detention here, I have taken many a
photographic stroll, in which my men are always eager to accompany
me. On these occasions I have to divide the small amount of
apparatus necessary to be taken with me among as many of them as
possible, so that everyone may have something to carry. It is never
very long before Pesa mbili the Mnyampara or caravan headman,
lifts up his voice—a very good one too—whereupon the chorus
promptly falls in in excellent time. I may here give a specimen of
these little marching songs:—
Kabowe kabowe ku meso; Namuki kabowe ku meso. (1)
Wambunga kabowe ku meso; Namuki kabowe ku meso.
Ki! kabowe ku meso; Wamwera kabowe ku meso.
Ki! kabowe ku meso; Wakumbwa kabowe ku meso.
(1) We shoot with our eyes—we shoot the Namuki with our eyes,
The Wambunga, we shoot them with our eyes—the Namuki, we shoot them
with our eyes;
Bang! we shoot with our eyes—the Wamwera, we shoot them with our
eyes;
Bang! we shoot with our eyes—the Wakumbwa—we shoot them with our
eyes.
The singers, who are principally Nubians, state that this song is in
their mother tongue, the Darfur dialect. I have not yet succeeded in
obtaining a literal translation. The general meaning of the words,
which are sung with enviable lung-power and indefatigable energy, is
somewhat as follows:
“We are always strong. The Jumbe (headman) has been hanged by
the command of Allah. Hongo (one of the insurgent leaders) has
been hanged by the command of Allah.”
Thus much as to the results of my musical inquiries so far as they
concern the foreign elements (foreign, that is to say, here at Lindi) of
the Wanyamwezi and Nubians. I have obtained some records of
ngoma songs from Yaos and other members of inland tribes, but I
cannot tell for the present whether they are a success, as I find to my
consternation that my cylinders are softening under the influence of
the damp heat, so that I can take records, but cannot risk
reproducing them for fear of endangering the whole surface. A
cheerful prospect for the future!
Very interesting from a psychological point of view is the
behaviour of the natives in presence of my various apparatus. The
camera is, at any rate on the coast, no longer a novelty, so that its use
presents comparatively few difficulties, and the natives are not
particularly surprised at the results of the process. The only
drawback is that the women—as we found even at Dar es Salam—
usually escape being photographed by running away as fast as their
legs will carry them. The cinematograph is a thing utterly outside
their comprehension. It is an enchini, a machine, like any other
which the mzungu, the white man, has brought into the country—
and when the said white turns a handle on the little black box,
counting at the same time, in a monotonous rhythm, “Twenty-one,
twenty-two, twenty-one, twenty-two,” the native may be pleasantly
reminded of the droning measures which he is accustomed to chant
at his work; but what is to be the result of the whole process he
neither knows nor cares.
GIRLS FROM LINDI
Few people, I fancy, will know where Masasi is, yet those interested
in the Colonies might well be acquainted with its situation, for in its
own small way it is quite a civilizing centre. The English Mission[6]
has been at work here for nearly the third of a century, and, since the
suppression of the rebellion, a native corporal with a dozen black
German soldiers has been gallantly maintaining his ground, in a
boma specially built for the purpose, in case of any renewed warlike
impulses on the part of the interior tribes.
I preferred to take up my quarters with the soldiers, not from any
hostility to religion, but because the two clergymen at the mission
station, about an hour’s walk from us, are both advanced in years,
and it would be unfair to trouble them with visitors. Besides their
station was burnt down during the rebellion, so that they are leading
for the moment a more idyllic than agreeable life in their former
cattle-shed. In spite of this, the two old gentlemen, as I had every
opportunity of convincing myself in the course of two long visits,
enjoy extraordinarily good health. Archdeacon Carnon, the younger
of the two, in particular, took as lively an interest in the German
Emperor and his family as if he lived in a London suburb, instead of
in a negro village at the ends of the earth. Canon Porter seems to be
failing a little, but this is only to be expected as he is getting on for
eighty and has been in the country nearly thirty years.[7] In former
days I understand that he studied the ethnology of his district
(inhabited by Wanyasa, Wayao, and Wamakonde) very thoroughly,
so that up to yesterday I had great hopes of profitable results from
my intercourse with him and his more active colleague. But in this I
was disappointed. At the ceremonious, and, I must say, sumptuous
breakfast which the two clerical gentlemen set before us two
worldlings, Ewerbeck and me, whenever I began to speak about the
inhabitants of the neighbourhood and their tribal affinities, the
conversation was invariably diverted towards the Emperor and his
family! He must have made a truly extraordinary impression on
other nations.
However, our business is with the native African, not with the
white intruder, even though he should come in the peaceful guise of
the missionary.
My landing at Lindi of itself implied the main course of my
journey. A glance at the map of East Africa shows that the extreme
south-eastern corner of our colony, considered with regard to
population, stands out like an island from the almost uninhabited
country surrounding it. The region north of the Middle, and partly
also of the Upper Rovuma is (as Lieder, the geologist, whose early
death is such a loss to science, described it) a silent pori for hundreds
of miles, extending far beyond the Umbekuru and into the hinterland
of Kilwa—an uninhabited wilderness, where not a single native
village speaks of the large and peaceable population found here by
Roscher, Livingstone and Von Der Decken nearly half-a-century ago.
Only a narrow strip running parallel to the coast some distance
inland connects this island of population with the north, while
another, much more scantily peopled, runs up the Rovuma to the
Nyasa country.
Being thus cut off from surrounding tribes, the south-east—i.e., the
Makonde Plateau, the Lukuledi Valley north of it, and the wide plain
to the west of these highlands—forms a compact, well-defined whole,
an ideal sphere of work for one who, like
myself, has only a limited time at his disposal,
but wishes the work done in this time to be as
far as possible complete. The Wamwera,
whom I had in view in the first instance, have
had, to my great regret, to be postponed for
the present. I left Lindi on July 11th, with the
Imperial District Commissioner, Mr.
Ewerbeck. Ngurumahamba, the first
noticeable place on the Lukuledi road, still
bears the impress of the Coast—there is even a
stone house among the huts of the Waswahili;
but on the second day we reach the Yao tribe
at Mtua. Here we first come in touch with the
far interior, for these are the advance guard of
the great migration which brought this
vigorous and energetic race about the middle
of the last century from its old home south-
A MAN OF THE
MWERA TRIBE AND A east of Lake Nyasa towards the shores of the
YAO Indian Ocean, and which is still going on. As
to the way in which these migrations are
accomplished, we are apt to be misled by the
picture—no doubt a very incorrect one—which has remained in our
minds from our school-days, in connection with the migration par
excellence—the great westward movement of our own forefathers.
We think of men, horses, and waggons, a dense, compact wave of
people, rolling on slowly but irresistibly across the countries lying in
its track. Here we find nothing of the sort. It is true that these Mtua
Yaos are not typical of their tribe in this respect, as they were rescued
from the Wangoni, further north, on the eastern shore of Nyasa,
about ten years ago by Captain Engelhardt, and transferred to this
settlement. But otherwise the immigration of foreign (though still
African) elements takes place, here in the south, quietly and almost
imperceptibly—a band, a horde, a group of families, sometimes, but
not always, under the command of a chief, appears one fine day, hoes
a piece of land at a suitable place in the pori, builds a few airy huts,
and the immigration is complete. Conflicts, more or less sanguinary,
between the aborigines and the intruders may have occurred—may
even have been the rule—in former times; nothing of the kind seems
to happen to-day. Whether the native has become more tolerant, or
the firm hand of the German Government, to whom every accession
of population must be welcome, has produced a change in his views,
I am compelled to leave undecided.
In outward appearance these Yaos can scarcely be distinguished
from the Swahilis of the coast. The women are dressed in precisely
the same kind of kanga (calico printed in brightly-coloured patterns,
and manufactured in Holland), as the Coast women, though not so
neatly and fashionably as the girls at Dar es Salam, where the
patterns in vogue change faster than even at Paris. They also wear
the same coquettish little pin in the left nostril as the Coast ladies. Of
Indian origin, this kipini, called chipini in Yao, has conquered the
whole east coast of Africa, and is spreading, as a symbol of higher
culture and refinement, among the more progressive tribes of the
interior. In its simplest form a mere cylinder of pith, the better
specimens are made—according to the means of the wearer—of
ebony, tin, or silver. The ebony pins are almost always very tastefully
inlaid with tin. To our notions, the chipini hardly beautifies the
human countenance; but once the beholder is accustomed to its
effect, it becomes quite pretty and attractive, lending a coquettish
touch to the brown face it adorns.