Chapter 11, Problem 9SQ

What combination of intermodal services would be most beneficial for the following products? a. Lumber moving from British Columbia, Canada to London, England b. Seedless grapes moving from Valparaiso, Chile to Phoenix, Arizona c. iPhones moving from Zhengzhou, China to Johannesburg, South Africa

Background The airline industry uses a hub-and-spoke distribution structure to funnel passengers into its highly profitable long haul routes.  For example, American Airlines has one of its major hubs at Dallas-Fort Worth International Airport (DFW).  It has spokes that project out to other airports which are either smaller or not hubs, like those at Kansas City, Wichita, Lubbock, New Orleans, Houston, and Colorado Springs.  The spokes are usually characterized by low competition and American tends to use older turbo prop and jet aircraft, charge a premium price and provide fewer flights and always at times designed to marry up with its long haul routes to the east and west coasts and to its foreign destinations.     In the 1990s new low cost airlines began to penetrate some of these markets by providing lower prices, more frequent service and new jet aircraft and associated amenities.  One of the routes was from DFW to Wichita, Kansas.  A new low cost carrier, Vanguard Airlines entered…

Intermodal transportation can be used for door to door delivery. Select one:A. False B. True