Concept explainers
Case summary:
Large trucks play an important role in a logistics chain. However, in 2012, $333,000-worth large trucks were crashed, almost 3,800 died, the majority being other vehicle drivers or passengers of other vehicles, and not the truck drivers themselves. In 2014, Company W’s truck driver caused a major accident were he fell asleep after staying awake the whole complete day and crashed the car; one person is dead and the other was critically injured.
In July 2013, Country U’s department of transportation enacted harder hours of service rules. As a result, one report claimed that these rules would bring a loss of $1 billion to the company, while another concluded that company would recognize $500 million in profit from reduced driver death.
The new rules have caused large arguments and have caused hardships for drivers. As one driver stated, “if wheels aren’t turning, you’re not earning”.
To determine: The hours-of-service rules for the Department of Transportation (DOT) trucks and briefly outline the rules of 2013.
Characters in the case:
- Company W
Introduction:
The rules are instructions specified by the government which is mandatory for everyone to follow. If they cross the rules, they have to pay a penalty.
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Chapter 12 Solutions
Principles of Marketing, Student Value Edition (17th Edition)
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Contemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage Learning