Dynamics of Transportation Economics

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The purpose of this research was to show the metaphorphosis of a transportation service organization paralyzed by the lack of innovative policies to face the changes in the environment, customers and competitors. Its objective is to develop, through System Dynamics (SD), qualitative and quantitative scenario models, identifying the economic variables: auxiliary, flow and level, which affect the development of the organization; and using the concepts of economy of scale, economy of distance (to determine the costs and profits for the vehicle rental service and for the freight service for a given distance respectively); and economy of scope, as an evaluation factor in the execution of the two types of services. This study was carried out empirically and deductively, by means of field work, collecting information through the follow-up of the units as well as formal and informal meetings. The result of the research allowed determining and validating quantitatively that it is advisable for the organization to break its paradigm of performing only one type of service and to adapt to performing the two types of services or business in parallel, since it has an economic scope of 4.16% and a profit of $ 33.2 per day for the service of vehicle use.

Original languageEnglish
Title of host publication20th LACCEI International Multi-Conference for Engineering, Education Caribbean Conference for Engineering and Technology
Subtitle of host publication"Education, Research and Leadership in Post-Pandemic Engineering: Resilient Inclusive and Sustainable Actions", LACCEI 2022
EditorsMaria M. Larrondo Petrie, Jose Texier, Andrea Pena, Jose Angel Sanchez Viloria
ISBN (Electronic)9786289520705
DOIs
StatePublished - 2022
Event20th LACCEI International Multi-Conference for Engineering, Education Caribbean Conference for Engineering and Technology, LACCEI 2022 - Boca Raton, United States
Duration: 18 Jul 202222 Jul 2022

Publication series

NameProceedings of the LACCEI international Multi-conference for Engineering, Education and Technology
Volume2022-July
ISSN (Electronic)2414-6390

Conference

Conference20th LACCEI International Multi-Conference for Engineering, Education Caribbean Conference for Engineering and Technology, LACCEI 2022
Country/TerritoryUnited States
CityBoca Raton
Period18/07/2222/07/22

Keywords

  • Economy of Distance
  • Economy of Scale
  • Economy of Scope
  • Road Transportation
  • System Dynamics

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