SCHM 3301 Final: Exam 2 Study Guide

• School: Northeastern University
• Department: Supply Chain Management
• Course: SCHM 3301
• Professor: robertlieb

Document Summary

Increased focus on worker safety in foreign manufacturing facilities: volatility in the middle east, natural disasters, global movement toward free trade, large scale m&as, new technology, transportation infrastructure problems. Ii: combination carrier (passenger & cargo services, delta, emirates, etc, air cargo carriers (parcel & freight) Fedex, ups, dhl, etc: carrier alliances (eliminate excess capacity) Similar to ship sharing in ocean cargo industry: charters, air freight forwarders, disintermediation = remove the middlemen, maersk doesn"t use freight forwarders, customs brokers, agents (instead of having their own sales force, government (financial & regulatory roles) Prices you can charge, markets you can serve, m&as, etc. If fuel prices and/or interest rates increase, next day delivery will become near impossible (expensive) Fuel has a direct effect on variable and operating costs. Possible overcapacity if older planes aren"t retired. Less incentive for r&d: hedging = buy fuel on contract @ current fuel price.