Transportation problem with volume discount on shipping cost

Transportation problem with volume discount on shipping cost

 

1.0 Introduction

When considering transportation, various considerations are apparent. This consideration includes port selection, inland movement, port to port carrier selection and delivery movement. In addition to these transportation concerns, distribution-related considerations must be also given attention to such as packing/packaging, transit insurance, terms of sale, import duties, handling/loading and method of financing. Nevertheless, even freight companies projecting large volume movements can encounter serious transportation problem in organizing for distribution. Understanding these transportation problems especially that affects shipping costs is critical. Volume discount, more specifically, targets shipping costs and in minimizing the latter, volume discount must be acquired. In this study, the transportation problems encountered by freight companies will be explored especially those that affect the shipping cost.

  

2.0 Problem Statement

The problem that will be addressed in this study centers the transportation problems experienced by freight companies. Volumes of goods to be shipped incur costs hence acquiring volume discounts could effectively lead to reduced shipping costs. However, there are transportation problems that hinder the materialization of improved total output through reduced costs of shipping. The key question to be answer is: How freight companies could improve their total output through effectively reducing shipping costs through volume discounts? Other research questions to be given answer to are:

1)     What are the transportation problems that freight companies experience at the present? How these transportation problems could be addressed?

2)     What are the prevailing mathematical programmes being implemented? How effective are these programmes?

 

3.0 Study Objectives

The main aim of this study is to design mathematical programme that would improve the total output of freight companies especially since they deal with shipping of goods by volume. Whether maximum profit will be realised with discounts on large volumes means to determine what might hinder the effective transportation of these goods. In lieu with this, other study objectives are as follows:

·       Determine how freight companies could improve total output through addressing the transportation problems encountered

·       Distinguish how volume discount could advent the operation of freight companies

·       Evaluate how freight companies could maximize their total output through limiting shipping cost

 

4.0 Methodology

The research strategy that the study will utilize is the descriptive method. A descriptive research intends to present facts concerning the nature and status of a situation, as it exists at the time of the study (, 1994). It is also concerned with relationships and practices that exist, beliefs and processes that are ongoing, effects that are being felt, or trends that are developing (, 1970). In addition, such approach tries to describe present conditions, events or systems based on the impressions or reactions of the respondents of the research (, 1994).

In this study, primary and secondary research will be both incorporated. The reason for this is to be able to provide adequate discussion for the readers that will help them understand more about the issue and the different variables that involve with it. The primary data for the study will be represented by the survey results that will be acquired from the respondents. On the other hand, the literature reviews to be presented in the second chapter of the study will represent the secondary data of the study. The secondary sources of data will come from published articles from books, journals and theses and related studies.

 

 

 

 

 

5.0 Timeframe

        TASK

Weeks

1st

2nd

3rd

4th 

5th

6th

7th  

8th

9th

10th

11th 

12th

Read literature

 

 

 

 

 

 

 

 

 

 

 

 

Finalize objectives

 

 

 

 

 

 

 

 

 

 

 

 

Draft literature review

 

 

 

 

 

 

 

 

 

 

 

 

 

Devise research approach

 

 

 

 

 

 

 

 

 

 

 

 

Review secondary data

 

 

 

 

 

 

 

 

 

 

 

 

Organize survey

 

 

 

 

 

 

 

 

 

 

 

 

Develop survey questions

 

 

 

 

 

 

 

 

 

 

 

 

Conduct survey

 

 

 

 

 

 

 

 

 

 

 

 

Analyze secondary and primary data

 

 

 

 

 

 

 

 

 

 

 

 

Evaluate data

 

 

 

 

 

 

 

 

 

 

 

 

Draft findings chapter

 

 

 

 

 

 

 

 

 

 

 

 

Complete remaining chapters

 

 

 

 

 

 

 

 

 

 

 

 

Submit to tutor and await feedback

 

 

 

 

 

 

 

 

 

 

 

 

Revise draft and format for submission

 

 

 

 

 

 

 

 

 

 

 

 

Print, bind and submit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

 

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