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Transportation Part 2
#Principles in Transportation
1. Economies of Scale - There are certain FC And VC , FC remains same but VC changes . Fc divided into many units when the units are more . You are selling at lower cost. A single product may not have single demand therefore they try to combine them . More quantity you are transporting more cost is divided .
2. Economies of distance ( tapering principle ) - Assume you are transferring a parcel 500 km from the point , and another to 500 km , Then in that case If you are covering 1000 km at stretch so that your cost is reducing .
Assume 2 parcel to send to place a and b both are 500 km from Mumbai , one is in Northern and other is southern , But compare this with 1000 km straight gone . 1000km taken at stretch is less costly , it is because you were spending a lot of amount in loading and unloading when it is not stretched .
#Participants -
1. Shipper
2. Receiver
3. Carrier
4. Government
5. Public
#Factors Influencing Transportation
- Nature of goods
- Availability
- Distance
- Cost
- Delivery time
- Frequency
- Capabilities of mode
- Speed
- Reliability
- Safety
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