Problem
• Why is it important to account for congestion when pricing the use of transportation infrastructure?
• Compare the transportation costs for an online business such as Amazon and a retailer such as Home Depot when selling home-improvement materials.
• Do you expect aggregation of inventory at one location to be more effective when a company such as Dell sells computers or when a company such as Amazon sells books? Explain by considering transportation and inventory costs.
Case Study - "Selecting Transportation Modes for China Imports",
• What is the annual cost of using air freight to importsmartphones? What is the annual cost of using ocean shipping to import smartphones?