The Traffic Manager for WLG,Inc Is Evaluating Transportation Modes for Shipment

question 48

Multiple Choice

The traffic manager for WLG,Inc is evaluating transportation modes for shipment of the company's products.WLG's components division produces electronic assemblies according to buyer's specifications.The typical product is high-value--in the range of $30,000 to $50,000,small--less than 8 inches square,very fragile,insurance costs are $1750 per day for each item,and the shipment distance is 2,500 miles.Which mode of transportation would be most appropriate?

• A) Amtrak
• B) air
• C) freight forwarder
• D) Time guaranteed delivery truck

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Definitions:

Supply

A relation between the price of a good and the quantity that producers are willing and able to sell per period, other things constant.

Demand

Refers to the quantity of a good or service that consumers are willing and able to purchase at various price levels over a given period of time.

Interest Rate

The percentage charged on borrowed money or paid on savings accounts, essentially the cost of borrowing money or the reward for saving.

Loanable Funds

The total amount of capital available in the financial markets for borrowing, influenced by savings and investments.