Instructions Answer Challenge Question #1 on Page 53 by using an Excel spreadshe
ID: 396770 • Letter: I
Question
Instructions
Answer Challenge Question #1 on Page 53 by using an Excel spreadsheet and a stacked line or area graph to show the Inventory Carrying Costs, Transportation Costs, and Administrative Costs of Logistics from 1980 to 2019 (Table 2.1 on Page 30)
How has transportation cost as a percentage of total logistics cost tracked since 1980, when transportation was deregulated? How do u explain the trend?
Table 2.1- U.S.logistics cost, 1980-2010 in five year intervals (SB) Year Nominal Inventory Transportation Administrative Total Logistics GDP (ST) Cost Cost Cost Logistics %Of GDP 1980 1985 1990 1995 2000 2005 2010 .830) 4.22 5.80 7.40 9.82 12.43 14.60 220 227 283 302 374 395 396 1A 274 351 441 594 739 769 17 20 25 30 39 46 47 Cost 451 521 659 773 1007 1180 1212 16.1 12.3 11.4 10.4 10.3 9.5 8.3 Source: Adapted from Rosalyn Wilson, 22nd Annual "State of Logistics Report" Council of Supply Chain Management Professionals and Penske: Oak Brook, IL, 2011.Explanation / Answer
the above figures shows the increasing trend of the transportation cost in the total logistics cost in USA.
per cent of transportation cost in total logistics cost
the cost of transportation has been increased during the period. there may be many reasons for this, as it is asked in the question, it happened may because of the deregulation of transportation in US. Or most of the firms are spending higher amounts on transportation, they are exporting and importing goods with in the states of US. Geographically USA is one of the largest nation, with 29 states, covering all these through transportation definitely requires higher cost.
year transportation cost/Total logisctics cost per cent 1980 214/451 47.45 1985 274/521 52.59 1990 351/659 53.26 1995 441/773 57.05 2000 594/1007 58.99 2005 739/1180 62.63 2010 769/1212 63.45