home members meetings committees guidelines education
organization

Effect of Transportation Response Time Cost and Capacity Utilization 
 
Transportation capacity can be used more effectively if the managers have more time to plan the trips.  This is not unique to specialized transportation.  Virtually all other transportation firms;  FedEx,  UPS, US Post Office, and international air freight charge higher rates based on response time as shown in Figure 1.  Same day service is much more expensive than 2-3 business day response times.  The specialized carriers must identify how much costs change, and help the industry understand why the cost differences exist. 


Cost of Service vs. Response Time