MARKETNG 300 1st Edition Lecture 14 Outline of Last Lecture XXIII Chapter 11 Terms part 1 XXIV Chapter 11 Concepts to Apply part 1 Outline of Current Lecture XXV Chapter 11 Terms part 2 XXVI Chapter 11 Concepts to Apply part 2 Current Lecture XXV Chapter 11 Terms part 2 Transporting the marketing function of moving goods makes products available when and where they need to be at a cost Containerization grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination Piggyback Service loading truck trailers or flatbread trailers carrying containers on rail cars to provide both speed and flexibility Storing the marketing function of holding goods so they re available when they re needed Inventory the amount of goods being stored Private Warehouses storing facilities owned or leased by companies for their own use Public Warehouses independent storing facilities Distribution Center special kind of warehouse designed to speed the flow of goods and avoid unnecessary storing costs XXVI Chapter 11 Concepts to Apply part 2 4 What are the pros and cons of the major transportation methods Truck pros fast delivery speed very extensive amount of locations high ability to handle variety of goods high frequency of shipments dependable in meeting schedules Cons high cost Rail pros extensive amount of locations served high ability to handle variety of goods Cons low frequency of scheduled shipments These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Water pros very low cost very high ability to handle a variety of goods Cons very slow delivery speed limited number of locations served very low frequency of shipments schedule Air pros very fast delivery speed very extensive amount of locations served high frequency of scheduled shipments high dependability of meeting schedules Cons very high cost limited ability to handle a variety of goods Pipeline pros low cost high dependability in meeting schedules Cons slow delivery speed very limited number of locations served very limited ability to handle a variety of goods 5 Why is storage necessary What are the costs associated with storage Storage is necessary to hold inventory which we need when production doesn t match consumption to keep prices steady to achieve production economies of scale and to build channel flexibility Costs associated w storage cost of storage facilities handling costs cost of damage while in inventory cost of risks longer it sits more likely it could get damaged cost of inventory becoming obsolete and interest expense and opportunity cost
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