Choice of Mode


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•Factors influencing the choice of mode are as under:
-Bulkiness of the materials; heavy items would be shipped by ocean going vessels.
-Value of materials; expensive items raise inventory costs and thus encourage faster modes.
-Criticality of materials; even low unit value items that hold up the operations need fast and reliable transport.
-Susceptibility to market changes; operations that respond quickly to changes cannot wait for critical supplies using slower transport.
-Reliability with consistent delivery is important.
-Cost and flexibility to negotiate rates.
-Reputation and stability of carrier.
-Susceptibility to loss, theft and pilferage
-Schedule and frequency of delivery.
-Special facilities available
•Limitations of Multimodal system
-Sometimes carriers are reluctant to participate.
-Willingness to coordinate in respect of moving the product is higher when any one carrier is incapable to transport in its entirety.

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