Trancorp currently transports all its goods to Burland

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Trancorp currently transports all its goods to Burland Island by truck. The only bridge over the channel separating Burland from the mainland is congested, and trucks typically spend hours in traffic. Trains can reach the channel more quickly than trucks, and freight cars can be transported to Burland by barges that typically cross the channel in an hour. Therefore, to reduce shipping time, Trancorp plans to switch to trains and barges to transport goods to Burland.

Which of the following would be most important to know in determining whether Trancorp's plan, if implemented, is likely to achieve its goal?

(A) Whether transportation by train and barge would be substantially less expensive than transportation by truck

(B) Whether there are boats that can make the trip between the mainland and Burland faster than barges can

(C) Whether loading the freight cars onto barges is very time consuming

(D) Whether the average number of vehicles traveling over the bridge into Burland has been relatively constant in recent years

(E) Whether most trucks transporting goods into Burland return to the mainland empty

OA C

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by deloitte247 » Wed Aug 08, 2018 7:52 am

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Option A - INCORRECT.
For Transcorp to have decided to switch into transporting Freight cars by train and barge, they would examine this medium to be substantially less expensive than transportation by truck.

Option B - INCORRECT.
Had it been there are boats that can make the trip between the mainland and Burland faster than barges, Transcorp would have given it a try before opting for barges.

Option C - CORRECT.
Timing is a very important factor in every business that is why Transcorp's plan if implemented is likely to achieve its goal . However, loading the freight cars into barges maybe less time consuming depending on the number of cars going on a trip. Meanwhile, all of this issues would have been put into consideration as less time consuming for quick delivery, that is why Transcorp can go ahead with this medium compared to other available medium of transportation.

Option D - INCORRECT.
If the average number of vehicles traveling over the bridge into Burland has been relatively constant in recent years then the new plan can be implemented.

Option E - INCORRECT.
This also would have been put into consideration before choosing train and barges for transporting freight cars. If most trucks transporting goods into Burland return to the mainland empty then Transcorp will have to pay for the return trip which will make transporting with truck not less expensive.