Adamu a wholesaler in Lagos, who deals in frozen foods has customers in the northern parts of the country (a) State four factors that would affect the choic...

Answer Details

(a) Factors Affecting Choice of Transportation Mode:
(i) Perishability of the goods: This will determine the mode of transportation to be used, since Mr Adamu deals in frozen foods which are perishable, he would use the fastest means of transportation mode.
(ii) Cost of transportation: The cost of various modes of transportation available would influence the choice of the modes to be used.

(ili) Type of transportation mode available from Lagos to the Northern part will determine the choice of transportation mode

(iv) Quality/volume/bulkiness of goods: The quantity of goods will determine the choice of transportation mode:

(v) Distance: The journey from Lagos to Northern Nigeria is longer on road, therefore, Adamu would rather use the fastest transportation mode.

(vi) Degree of urgency: Customers that require urgent delivery of the frozen foods are better handled by the fastest mode of transportation.

(vii) The value of the frozen foods is considered since the cost of transporting it would increase the price of the product.

(b) Transportation Documents Mr. Adamu would use to Deliver the Goods to his Customers: (i) Consignment note (ii) Waybill (iii) Certificate of insurance (iv) Manifest (v) Delivery note

Explanations of transportation documents: (i) Consignment note: It is a document sent by 'the sender of the goods and handed-over to the carrier and counter- signed on delivery as a proof that the goods were delivered. It is used when the seller is not using his/her own transportation to dispatch the goods to the seller.

(ii) Waybill: It is a document that describes goods- in-transit and handed over to the carrier by the supplier.

(ili) Certificate of insurance: It is a document that shows that the goods have been insured against risks or losses that may arise in the course of moving the goods to the buyer.

(iv) Manifest: It is a document that shows the list of goods and passengers on board. (v) Delivery note: It is a document that accompanies the goods to the buyer as an evidence of delivery