4 ms·
It is a pity, because from the raw numbers trains are much less expensive then tracks. Often, the flexibility and reduced latency of freight by truck is worth
by stcredzero 9y ago
It is a pity, because from the raw numbers trains are much less expensive then tracks.
Often, the flexibility and reduced latency of freight by truck is worth the increased per-mile cost.
- stefan_ 9y agoFreight by truck is worth it because of flexibility and reduced latency, flexibility and reduced latency are worth it because of just-in-time production, just-in-time production is worth it because of less inventory, less inventory is worth it because of less money locked up in inventory, less money locked up in inventory is worth it because of better cash flow on the quarterly reports, better cash flow on the quarterly reports is worth it because it makes the stock market like your company more, the stock market liking your company more is worth it because ??? We might just find out the things we thought are worth it, are not really. It works the other way around, too, of course, which is that the increased per-mile cost is still way below what it would have to be with the externalities accounted for.
- stcredzero 9y agoWe might just find out the things we thought are worth it, are not really. Then give a concrete quantification of that. It's a very complex question. Entire careers have been built on how to price something complex. That's called "economics."
- squidlogic 9y agoLow inventory is also worth it because it uncovers operational inefficiencies. So it not only helps you become more profitable, but also more reliable.
- mattkrause 9y agoDoesn't it also mean that when things go wrong, they go really wrong?
- stephengillie 9y ago> ...less inventory is worth it because of less money locked up in inventory... Less inventory is worth it because space is money, especially on a retail shelf.