5.1

The pattern of growth of economy of any business institutions depend on the movement of goods from the suppliers to the clients or customers. The need and demand for movement of good in business are driven by change in business practices, customer behavior, technology and increasing workloads. Sectors in economic impact one another. Demand for goods and services in a given sector are derived from one another. The law of demand says that when all factors remain equal, when the price of a good is higher then less people will demand that well. Higher prices of goods attracts less demand from customers.

The derived transport and movement in fulfilling demand is essential and it supports mobility of goods. The ability to deliver and accommodate goods are dependent to one another. The needs and demand of movement of good are identified by knowing the customer needs, the technology required, type of goods to be transported or moved as well as the change in the business landscape. The advancement of technology and ease of shopping of movement of goods, Goods like vegetables, clothes and other products which are bought by customers require transportation from the supplier to the customer’s destination. Therefore, this amplifies the need of transport. The demand of movement of good is identified by looking at the prevailing market analysis. Knowing how the market is changing determines the need of movement of goods from one place to another. The changes in demand and supply of goods and availability of customers dictates the movement of goods. Availability of storage of transported goods from one region to another helps in identification of the mode of transport of goods. Logistical support on movement of goods in a business set up depends on warehousing facilities. Goods will only be moved when storage facility are in place. For perishable goods, demand for faster means of goods before they reach their destination is very essential. A good example, flowers are transported to Europe by use of airplanes since they perishable goods and need a short time to reach consumers.

The demand for the movement of goods is identified by the location of the customer who requires the service or goods. Goods like cars are imported from manufacturing countries to the customers around the world by use of large container ships. The location of a customer helps in identifying how a good will be moved. The modal competition and commercial advantage of movement of goods helps in identifying the need for transportation of goods.

In conclusion, the demand and need of movement of goods is a critical aspect in economy that business consider in structuring their customer relationship. The demand of movement of goods are identified as discussed above. The difference in geographical location, technological advancement in the market, the type of goods being offered and customer satisfaction are the tools used to identify the need for movement of goods.

5.2

Globalization in the recent past have led to the expansion of logistic activities and demand of trade. Therefore, key decisions are made by organization in relation to the mode of transport and carrier of outbound and inbound freights. Managers consider many attributes in making decisions that focus on transit time and cost of the mode of movement of goods. Mode choice and selection are the broad aspect of decision-making regarding transportation of goods. The identification of relevant modes of transport and best performance variables of the mode chosen by an organization is a key process an organization need to consider. Transportation is essential in relation to cost of logistics for any organization. The planning in a multi-modal concept engulfs various modes and how they connect to one another. However, the modal choice is a complex structure in relation to the model structure of a business. The service provided by any mode represents the time for travel. Organizational logit model helps in giving the choice of the model required in delivery of any service. The cost and travel time are usually estimated of the cost of time in conversion of either time or cost relating to one another. The variable of the cost of time are based on the level of the economy of a traveler or an organization moving goods and other services.

The logit model below gives the modal analysis of TDA (Trip Distribution Analysis) in relation to the kind of transportation required by a traveler.

The need for such analysis in any organization is enormous and the logistic department need to consider the underlying variables as they attempt to make the most favorable mode of transport. The issue of cost is essential and decision-makers in any organization need to consider cost as mode of choice in the formulation of the best mode.

In conclusion, the logit formulation is not that complex arithmetic nor utility function. Organizations may have difficulty in estimating the parameters for the variables required in utility function but that can be completed using other statistical analysis programs which will help in optimizing the accuracy of the coefficients of the estimates.

5.3

The movement of goods is a very essential; activity in an organization. The management always put strategies and plan how the need of movement of goods from their source to the consumer would be met to fulfill the best economic obligation of the activity. The movement of goods entails transportation planning and control of inventory in an organization. The need for faster, safer, economic, environmental-friendly, convenient and comfortable mode of transporting good as well as people to fulfill the demand is critically important.

The planning for movement of goods include various steps. First, in an organization, it is important to monitor the existing condition before rolling out the best mode of movement of goods. Logistical strategists need to highlight the existing methods, note their merits and demerits and conclusively determine why there is need for a movement plan for goods. On monitoring the conditions that exist in an organization, financial implications are considered in determining the best mode of choice.

Secondly, forecasting on the future demands of goods and the customer geographical location is also another consideration during planning process for the need of movement of goods. The demand for movement of goods goes in tandem with the customer demand. The main consideration when planning the movement of goods is mainly customer satisfaction. Identification of customer base helps in identifying regions where movement of goods would feasibly give the best economic outcome for an organization. Another planning process is developing short-range plans and long-range plans that would give operational strategies and improvements in the process of moving goods. This process is vital for future activities of an organization.

The fifth, planning process involves estimation of future improvements in the mode of moving the goods by an organization even as the process is being rolled out. The modal choice of moving goods always come with an underlying shortcomings that would need to be improved in the future due to change of economic dynamics in the market. Therefore, in the process of planning considerable room for improvement is capture.

Lastly financial planning is done by the management to help in securing the revenues that would sufficiently help in satisfying the need of moving goods from one place to another. Logistics require financing, therefore, when planning for the movement of a good cost planning must be done by the management. If the cost of transportation of goods would be economically feasible then then the plan would be rolled out in the organization.

In conclusion in the planning process, demand forecast, shortages and excess as well as constraints in the production, inventory and inventory are considered before rolling out the mode of fulfilling the demand for moving goods. The sale plans, inventory plans and production plans helps in satisfying the customer needs. All these plans are considered when making a conclusive and comprehensive means of moving goods by an organization