Question

Which mode of transportation typically has the highest value-to-weight ratio? (Food for thought as you answer this question: Think of taking the value of the items typically shipped by a given mode and then dividing that value by the weight of the item. For example, compare the value-to-weight ratio of coal shipped on the water versus the value-to-weight ratio of an electronics item purchased online and shipped via truck or road. Which of these two has the higher value-to-weight ratio?A. Road B. MultimodalC. WaterD. PipelineE. RailF. Air

Answer 1

Option F, Air

Explanation:

The value to weight of an item is an indicator of the financial value per kilogram or kilo of an item. It is an important step for the development and strategy of the distribution chain.

If it is decided whether the cost savings in total inventory holding costs should be compared with savings on cost by means of cheaper transportation when shipments are made by sea, taking longer, than by air, usually the shorter one.

The diamonds and coal are a different example of the weight ratio. They are two types of carbon but they are of very different weight ratios. For diamonds, air and private jet charter can be well justified, depending on the size and value of the shipment.