KLF Electronics distributes its products through five regional warehouses located in Atlanta, Boston, Chicago, Dallas, and Los Angeles. In the current distribution system, the United States is partitioned into five major markets, each of which is served by a single regional warehouse. Customers, typically retail outlets, receive items directly from the regional warehouses in their market area. That is, in the current distribution system, each customer is assigned to a single market and receives deliveries from one regional warehouse.
The warehouses receive items from the …show more content…
The forms of legal transportation are common carriers, contract carriers, exempt carriers and private carriers. Common carriers provide services under closed regulation, as per the published tariff. They operate in a particular geographical area and for a specific commodity. Example of common carrier can be ‘highway transportation’. Contract carriers provide services at individually negotiated rates and operate under a regulatory authority. They have pricing freedom and have no service compulsion. They operate on the guidelines that there should be no rate discrimination between the customers. Example of contract carrier is ‘rail transportation’.
Exempt carriers are those which are not liable for taxation and free from obligations. These are used for agricultural commodities in the United States. Example of exempt carriers is water transportation. Private carriers look after their own goods transportation. They are not governed by cost and service regulations. They cannot carry the goods of others, although many regulations have now permitted to do so. Example of private carrier is air transport.
3. Consider the supply chain for breakfast cereal. Discuss the competing objectives of the farmers who make the raw materials, the manufacturing division of the company that makes the