Assignment on Logistics and Operations Management

Logistics and Operations Management 1
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Logistics and Operations Management 2
Q1. What is productivity and how does it affect transportation economics?
Productivity refers to the optimum and efficient utilization of available resources; information
labor, energy land, capital materials and materials during the production process of goods and
services. High levels of productivity mean production of more goods and services using the same
amount of available resources or delivering a higher amount of output in relation to output
volume and quality using the same amount of inputs, (Börjesson, Isacsson, Andersson, &
Anderstig, 2019). Mathematically, it can be illustrated as a ratio of output and input;
Product = output/input
From a wider perspective, productivity captures the ability of resources transformation in
generating the desired output. Productivity measures give answers to important issues that affect
the transportation economics. For instance, it affects the efficiency and effectiveness of how the
transportation sector moves various resources which include labor, goods, and services and
indicate if the value of transportation services has grown exponentially as compared to the total
cost of input used. Productivity dictates how the transportation resources are allocated in order to
meet the desired needs. It affects the relationship between the existing factors of production.
Productivity effectiveness or improvement in using the available resources affects the overall
development of transportation, (Liu, Wang, & Wu, 2019). It results in a direct improvement in
various aspects involving transportation economics which are under distribution productivity
achievements in accordance with the gains made in optimizing resource allocation.
Q2. Why is transportation important to supply chain management? how does forecasting play a
part in successful supply chain management?