Solutions Manual for Transportation
A Global Supply Chain Perspective
10th Robert Novack, Brian Gibson,
Yoshinori Suzuki
(All Chapters 1-13, 100% Original
Verified, A+ Grade)
All Chapters Arranged Reverse 13-1
This is the Only Original Solutions
Manual for 10th Edition, All Other
Files in the Market are
Fake/Old/Wrong Edition.
, Solution and Answer Guide: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 13: Issues and
Challenges for Global Supply Chains
Solution and Answer Guide
NOVACK, TRANSPORTATION : A GLOBAL SUPPLY CHAIN PERSPECTIVE, 10E , 2024, 9780357908549;
CHAPTER 13: ISSUES AND CHALLENGES FOR GLOBAL SUPPLY CHAINS
TABLE OF CONTENTS
Content Type.................................................................................................................1
[Study Questions]....................................................................................................................................1
End of Section Exercise Solutions................................................................................4
[Case Questions]......................................................................................................................................4
CONTENT TYPE
[STUDY QUESTIONS]
1. There has been an increasing number of editorials in newspapers and magazines about concern over
transport capacity and infrastructure. What is the nature of this issue? Why is it such a problem? How can it
be resolved?
Solution:
Basically, there has been an exponential increase in the demand for freight movement. Some of this is the
result of growth in the U.S. economy. However, there is no question that the globalization of our economy
during the last several decades has been a major factor in demand growth because of the increase in imports
and exports. Unfortunately, the maintenance and improvement of the transportation infrastructure have not
kept pace with the increased demand. Also, the capacity of the transportation carriers has not matched the
demand growth during the peak years. The solution is primarily finding sufficient public and private funds
to invest in improving and maintaining the total system. Increasing user charges (fuel tax, license fees, tolls,
etc.) is not popular. The solution will require both public and private funding and some behavioral changes
among users of the transportation system.
2. While we have concerns about transportation service currently, there did not appear to be any special
challenges or big problems during the 1980s and 1990s. Why were these two decades so different as far as
transportation is concerned?
Solution:
The 1980s and the 1990s were special in that transportation services became relatively less expensive. This
phenomenon was primarily attributable to two factors: relatively inexpensive fuel and competition among
transport carriers (because they had excess capacity, particularly in the motor carrier industry). These two
conditions helped to foster and sustain a relatively long period of economic growth. This led to increased
demand for transportation services, which was challenged by constraints in the infrastructure in the twenty-
first century.
3. We have all experienced highway congestion and “bumper-to-bumper” traffic, but congestion is a huge
issue for supply chains and transport service providers. Why?
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part. 1
, Solution and Answer Guide: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 13: Issues and
Challenges for Global Supply Chains
Solution:
Congestion is a problem for the general public because it increases economic and social costs, but our
increase in economic cost is usually relatively low (extra fuel). For businesses, however, congestion delays
can substantially increase their economic or real cost of operation. The text indicates that highway delays
cost Nike an additional $4 million per week in extra inventory costs, and that is without considering
increased labor or fuel costs. The text offers other examples, with their respective costs to businesses.
4. The supply chain industry is facing a severe talent gap. What are the causes of this gap? What can
companies do to acquire and retain supply chain talent?
Solution:
People are the most important asset of any organization. They provide the leadership, management, and
innovation required to make any organization successful. As such, managing talent through acquisition and
retention must be a key strength of any company. This is especially true for supply chain talent in today’s
environment. According to the Bureau of Labor Statistics, jobs for logistics professionals are predicted to
grow 26 percent between 2010 and 2020. However, a severe supply chain talent gap exists today.
According to a DHL Supply Chain research project, there are six supply chain job openings for every
supply chain graduate.
The shortage of over-the-road truck drivers is another example. According to the American Trucking
Association (ATA), the driver turnover rate in the third quarter of 2016 for carriers with revenue exceeding
$30 million was 81 percent. Along with this, the ATA estimates that the driver shortage in 2015 stood at
48,000 and could rise to 175,000 by 2024.
There are several strategies firms can use to acquire and retain supply chain talent. First, establish
recruiting relationships with universities that have a well-developed supply chain curriculum. Second,
change the perception of the supply chain management profession; it should be marketed as having a
promotion path. Third, develop supply chain management internally through training and professional
development. Fourth, some long-haul truckload carriers are regionalizing their operations to be able to give
their drivers more “home” time.
5. Sustainability and the environment have captured the attention of not only ordinary citizens, but also
shippers and carriers. What is the nature of the concern? How can shippers and carriers mitigate their
impact on the environment?
Solution:
The overall concern is the diminishing quality of our environment and its resources. For example, the
ecological system is being negatively impacted by the carbon footprint of many businesses and individual
households. There is a direct correlation between the economic development of countries and the quality of
the environment. The logistics systems and supply chains of companies have a major impact on the
environment through their transportation, packaging, warehousing, and related decisions. Network
optimization can reduce transport miles and warehouse locations, and ultimately the carbon footprint.
Analyzing and rationalizing packaging can also lead to improved sustainability and collaboration to
increase land consolidation and decrease emergency shipments. The supply chain can be a major factor in
improved sustainability.
6. “Don’t ship air” and “don’t ship water” are the bases of some important supply chain strategies. What do
these statements really mean? What are the related strategies? How do these strategies help?
Solution:
“Don’t ship air” essentially means don’t waste space in a transport container. The most obvious strategy
here is reducing empty or partially filled shipment miles. The empty shipments frequently occur with
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part. 2
, Solution and Answer Guide: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 13: Issues and
Challenges for Global Supply Chains
backhauls. Achieving balanced flows is always a challenge, but it can be accomplished with shipper-carrier
collaboration and visibility.
“Don’t ship water” refers to products that have water included. Water adds significantly to the weight of the
product. The classic examples are beer and soda (which are about 90% water), but there are many other
consumer products that contain water. The underlying premise is that water is available in most market
areas, and adding the water later (or even eliminating it) can result in significant transportation savings. The
Walmart example in this text provides an example of the benefits.
7. The EPA has implemented the Smart Way Transport Partnership. Discuss the nature and role of the
program. Do you think it will be effective? Why or why not?
Solution:
This EPA program is an effort to get carriers and shippers to collaborate and work toward a cleaner
environment and more efficient and less costly transport options. The program has doubled in size since
2004, with 1,100 members, including some of the top companies in the U.S. The EPA has pointed out the
possibility of significant savings with the adoption of their recommended practices. It is already effective,
as pointed out in this text, and should continue to be so.
8. Fuel prices have been very volatile during the last five years. What factors have contributed to this
volatility? What impact will lower fuel prices have on transportation?
Solution:
Essentially, the volatility is a manifestation of world supply and demand. Demand is growing at a steady
rate, especially with the economic emergence of underdeveloped countries in Asia, the Pacific Rim, and
South America. The supply picture has changed in recent years; new technology makes it feasible to drill
for oil and natural gas in what were considered marginal areas because of the recovery costs. This has led to
a significant reduction in the price of a barrel of oil and the emergence of the U.S. as a major producer of
energy.
9. What is collaboration? How can transportation companies and shippers use collaboration to reduce fuel
consumption and cost?
Solution:
Collaboration is essentially cooperation between buyers, sellers, and logistics providers.
It aims to eliminate costs and improve services. It involves sharing information and examining
opportunities to help each other. Collaboration can happen at the tactical, operational, and strategic levels.
As discussed in the text, Vendor Managed Inventory is a good example of proactive collaboration that
benefits many supply chains.
10. What is your view of the use of technology to enhance sustainability in transportation systems in the
future?
Solution:
Most students will profess to be optimistic, and rightly so. There is much potential for using technology to
improve the efficiency and effectiveness of transportation equipment and services.
11. Are you optimistic or pessimistic about transportation services for shippers in the 21st century? Why?
Solution:
This question can be answered either way. The student should provide logical analysis to defend either
position.
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part. 3
A Global Supply Chain Perspective
10th Robert Novack, Brian Gibson,
Yoshinori Suzuki
(All Chapters 1-13, 100% Original
Verified, A+ Grade)
All Chapters Arranged Reverse 13-1
This is the Only Original Solutions
Manual for 10th Edition, All Other
Files in the Market are
Fake/Old/Wrong Edition.
, Solution and Answer Guide: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 13: Issues and
Challenges for Global Supply Chains
Solution and Answer Guide
NOVACK, TRANSPORTATION : A GLOBAL SUPPLY CHAIN PERSPECTIVE, 10E , 2024, 9780357908549;
CHAPTER 13: ISSUES AND CHALLENGES FOR GLOBAL SUPPLY CHAINS
TABLE OF CONTENTS
Content Type.................................................................................................................1
[Study Questions]....................................................................................................................................1
End of Section Exercise Solutions................................................................................4
[Case Questions]......................................................................................................................................4
CONTENT TYPE
[STUDY QUESTIONS]
1. There has been an increasing number of editorials in newspapers and magazines about concern over
transport capacity and infrastructure. What is the nature of this issue? Why is it such a problem? How can it
be resolved?
Solution:
Basically, there has been an exponential increase in the demand for freight movement. Some of this is the
result of growth in the U.S. economy. However, there is no question that the globalization of our economy
during the last several decades has been a major factor in demand growth because of the increase in imports
and exports. Unfortunately, the maintenance and improvement of the transportation infrastructure have not
kept pace with the increased demand. Also, the capacity of the transportation carriers has not matched the
demand growth during the peak years. The solution is primarily finding sufficient public and private funds
to invest in improving and maintaining the total system. Increasing user charges (fuel tax, license fees, tolls,
etc.) is not popular. The solution will require both public and private funding and some behavioral changes
among users of the transportation system.
2. While we have concerns about transportation service currently, there did not appear to be any special
challenges or big problems during the 1980s and 1990s. Why were these two decades so different as far as
transportation is concerned?
Solution:
The 1980s and the 1990s were special in that transportation services became relatively less expensive. This
phenomenon was primarily attributable to two factors: relatively inexpensive fuel and competition among
transport carriers (because they had excess capacity, particularly in the motor carrier industry). These two
conditions helped to foster and sustain a relatively long period of economic growth. This led to increased
demand for transportation services, which was challenged by constraints in the infrastructure in the twenty-
first century.
3. We have all experienced highway congestion and “bumper-to-bumper” traffic, but congestion is a huge
issue for supply chains and transport service providers. Why?
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part. 1
, Solution and Answer Guide: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 13: Issues and
Challenges for Global Supply Chains
Solution:
Congestion is a problem for the general public because it increases economic and social costs, but our
increase in economic cost is usually relatively low (extra fuel). For businesses, however, congestion delays
can substantially increase their economic or real cost of operation. The text indicates that highway delays
cost Nike an additional $4 million per week in extra inventory costs, and that is without considering
increased labor or fuel costs. The text offers other examples, with their respective costs to businesses.
4. The supply chain industry is facing a severe talent gap. What are the causes of this gap? What can
companies do to acquire and retain supply chain talent?
Solution:
People are the most important asset of any organization. They provide the leadership, management, and
innovation required to make any organization successful. As such, managing talent through acquisition and
retention must be a key strength of any company. This is especially true for supply chain talent in today’s
environment. According to the Bureau of Labor Statistics, jobs for logistics professionals are predicted to
grow 26 percent between 2010 and 2020. However, a severe supply chain talent gap exists today.
According to a DHL Supply Chain research project, there are six supply chain job openings for every
supply chain graduate.
The shortage of over-the-road truck drivers is another example. According to the American Trucking
Association (ATA), the driver turnover rate in the third quarter of 2016 for carriers with revenue exceeding
$30 million was 81 percent. Along with this, the ATA estimates that the driver shortage in 2015 stood at
48,000 and could rise to 175,000 by 2024.
There are several strategies firms can use to acquire and retain supply chain talent. First, establish
recruiting relationships with universities that have a well-developed supply chain curriculum. Second,
change the perception of the supply chain management profession; it should be marketed as having a
promotion path. Third, develop supply chain management internally through training and professional
development. Fourth, some long-haul truckload carriers are regionalizing their operations to be able to give
their drivers more “home” time.
5. Sustainability and the environment have captured the attention of not only ordinary citizens, but also
shippers and carriers. What is the nature of the concern? How can shippers and carriers mitigate their
impact on the environment?
Solution:
The overall concern is the diminishing quality of our environment and its resources. For example, the
ecological system is being negatively impacted by the carbon footprint of many businesses and individual
households. There is a direct correlation between the economic development of countries and the quality of
the environment. The logistics systems and supply chains of companies have a major impact on the
environment through their transportation, packaging, warehousing, and related decisions. Network
optimization can reduce transport miles and warehouse locations, and ultimately the carbon footprint.
Analyzing and rationalizing packaging can also lead to improved sustainability and collaboration to
increase land consolidation and decrease emergency shipments. The supply chain can be a major factor in
improved sustainability.
6. “Don’t ship air” and “don’t ship water” are the bases of some important supply chain strategies. What do
these statements really mean? What are the related strategies? How do these strategies help?
Solution:
“Don’t ship air” essentially means don’t waste space in a transport container. The most obvious strategy
here is reducing empty or partially filled shipment miles. The empty shipments frequently occur with
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part. 2
, Solution and Answer Guide: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 13: Issues and
Challenges for Global Supply Chains
backhauls. Achieving balanced flows is always a challenge, but it can be accomplished with shipper-carrier
collaboration and visibility.
“Don’t ship water” refers to products that have water included. Water adds significantly to the weight of the
product. The classic examples are beer and soda (which are about 90% water), but there are many other
consumer products that contain water. The underlying premise is that water is available in most market
areas, and adding the water later (or even eliminating it) can result in significant transportation savings. The
Walmart example in this text provides an example of the benefits.
7. The EPA has implemented the Smart Way Transport Partnership. Discuss the nature and role of the
program. Do you think it will be effective? Why or why not?
Solution:
This EPA program is an effort to get carriers and shippers to collaborate and work toward a cleaner
environment and more efficient and less costly transport options. The program has doubled in size since
2004, with 1,100 members, including some of the top companies in the U.S. The EPA has pointed out the
possibility of significant savings with the adoption of their recommended practices. It is already effective,
as pointed out in this text, and should continue to be so.
8. Fuel prices have been very volatile during the last five years. What factors have contributed to this
volatility? What impact will lower fuel prices have on transportation?
Solution:
Essentially, the volatility is a manifestation of world supply and demand. Demand is growing at a steady
rate, especially with the economic emergence of underdeveloped countries in Asia, the Pacific Rim, and
South America. The supply picture has changed in recent years; new technology makes it feasible to drill
for oil and natural gas in what were considered marginal areas because of the recovery costs. This has led to
a significant reduction in the price of a barrel of oil and the emergence of the U.S. as a major producer of
energy.
9. What is collaboration? How can transportation companies and shippers use collaboration to reduce fuel
consumption and cost?
Solution:
Collaboration is essentially cooperation between buyers, sellers, and logistics providers.
It aims to eliminate costs and improve services. It involves sharing information and examining
opportunities to help each other. Collaboration can happen at the tactical, operational, and strategic levels.
As discussed in the text, Vendor Managed Inventory is a good example of proactive collaboration that
benefits many supply chains.
10. What is your view of the use of technology to enhance sustainability in transportation systems in the
future?
Solution:
Most students will profess to be optimistic, and rightly so. There is much potential for using technology to
improve the efficiency and effectiveness of transportation equipment and services.
11. Are you optimistic or pessimistic about transportation services for shippers in the 21st century? Why?
Solution:
This question can be answered either way. The student should provide logical analysis to defend either
position.
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in
whole or in part. 3
