Asked by Kaila Martinez on May 16, 2024
Verified
Which is correct regarding tapering rates?
A) The principle is based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles.
B) Transportation rates increase with distance directly in proportion to the distance.
C) In a one-source, one-market situation, the impact of the tapering rate will be to pull the location toward a point midway between the source and the market.
D) Uses transportation simplifications to recommend facility locations
Tapering Rates
The graduated adjustment of charges or fees based on scale or volume, commonly used in shipping or services pricing.
Facility Locations
The geographic placement of business operations, including factories, warehouses, and retail outlets, to optimize logistics and customer reach.
- Understand how tapering rates affect transportation costs and location decisions.
Verified Answer
AW
Angelica WesthouseMay 17, 2024
Final Answer :
A
Explanation :
Tapering rates are based on the carrier's ability to spread certain fixed shipment costs over a greater number of miles, which reduces the cost per mile for longer hauls.
Learning Objectives
- Understand how tapering rates affect transportation costs and location decisions.
Related questions
What Is the Effect of Tapering Rates on Facility Location ...
Define the Principles of Tapering Rates, Blanket Rates, and Commercial ...
Manufacturers May Want to Locate Close to Their Customers, If ...
Transportation Cost Depends on the Prices Offered by Different Carriers ...
The Mode of Transportation That Results in the Lowest Transportation ...