Your company has traditionally operated a fleet of vehicles wholly owned by the business and maintained on its principle site with full facilities. Due to the huge financial investment involved, the Board of Directors are formulating a strategy for the future with one area of investigation being the possibility of changing vehicle sourcing to contract hire. As the Transport Manager, using a fleet type of your choice: a) Compare and contrast the costs of owning and operating your own fleet with that of contract hire. b) Within a contract hire model, analyse the changes in control of the fleet that can be expected and outline how this model might meet sudden changes in demand. c) Discuss the effects of totally outsourcing your transport requirements whilst still meeting the expectations of your customers.

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
icon
Related questions
Question

Your company has traditionally operated a fleet of vehicles wholly owned by the business and maintained on its principle site with full facilities. Due to the huge financial investment involved, the Board of Directors are formulating a strategy for the future with one area of investigation being the possibility of changing vehicle sourcing to contract hire.

As the Transport Manager, using a fleet type of your choice:

a) Compare and contrast the costs of owning and operating your own fleet with that of contract hire. b) Within a contract hire model, analyse the changes in control of the fleet that can be expected and outline how this model might meet sudden changes in demand. c) Discuss the effects of totally outsourcing your transport requirements whilst still meeting the expectations of your customers.

 

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Aggregate planning
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning