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Measuring Improvements in the Movement of Highway and Intermodal Freight

Academic Studies

REPORT: Demand-based Transportation Planning, Policy, and Performance, an unpublished paper under journal review

SPONSORS: N/A

AUTHORS: Edward A. Morash, Graduate School of Management, Michigan State University

PARTICIPANTS: N/A

DATE: undated (1999)

SUMMARY:

The paper is largely concerned with the notion that public policy should be based, in part, on the effective functioning of the supply chain; put another way, that good private-sector logistics should be a goal of public policy.  Development of performance measures is not the main purpose of the work.

PERFORMANCE MEASURES PRESENTED:

The performance measures offered are related to the private-sector supply chain.

1.

Transportation cost (including loss and damage and costs of service failures)

2.

Productivity of transportation labor and equipment

3.

Asset management (inventory levels)

4.

Customer service (e.g., on-time delivery)

5.

Logistical quality (e.g., damage frequency)

ASSESSMENT:

These are legitimate measures of effectiveness in supply-chain management, and the author is right to point out that public policy can affect these measures.  The difficulty would come in trying to isolate the effects of highway-system performance on these indicators.  That would not be easy to do.

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