Dynamics of Transportation Economics

Authors

Cabezas, Maximo

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.