LGAV 3130: Air Cargo Planning & Control Spring 2018, MWF 01:00 PM – 1:50 PM, BLB 075

Instructor: Dr. S. HONGOffice: 338DPhone: Office (940) 369-8911Office Hours: Wednesday 3:30 PM – 5:00 PMBy appointment: 24 hours in advance preferred.

Monday 3:30 PM – 5:00 PM; Friday 2:00 PM – 3:30 PME-mail: seock.hong@unt.edu

Course DescriptionAnalysis of air cargo systems; the relationship between air cargo & supply chain management; logistics cluster; carriers & cargo network as well as regulation. Topics include how air cargo carriers and integrated carriers handle air cargo service, pricing, forecasting, and marketing. Particular emphasis on the economics of air transportation and network design.

Course MaterialsPrimary Text: Peter S. Morrell (2011), Moving Boxes by Air: The Economics of International Air Cargo, Ashgate Publishing Company, Burlington VT, ISBN 978-1-4094-0252-7 (hardback), ISBN 978-1-4094-0253-4 (e-book).

Quinet, E., and Vickerman, R. (2004), Principles of Transport Economics, Edward Elgar.Marc Levinson (2008), The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger, Princeton University Press, ISBN-10: 0691136408, ISBN-13: 978-0691136400.

Boeing, Current Market Outlook and World Air Cargo Forecast.Airbus, Global Market Forecast.

Required Reading: You will need to purchase the following cases for this course. See Blackboard for a link to Harvard Business Review to download these cases.

1. Yamato Transport: Valuing and Pricing Network Services (A), Harvard Business Case 9-704-475

2. Yamato Transport: Valuing and Pricing Network Services (B), Harvard Business Case 9-704-477

Learn: Course materials, assignments, and outside readings will be available on Blackboard (Bb) Learn. Students can access Learn using the internet. The site is password protected. You can learn more about Bb Learn by reviewing the on-line student manuals.

Course ObjectivesWith over 52 million tons of cargo shipped annually, the air cargo industry is the place to be. Prepare yourself to work in the industry and research with this course. You will learn about basic transport trend, air cargo terms, and procedures, how freight forwarders, airline cargo units, and integrator operate.After completing this course, students should be able to:

1. Describe the relationship between Supply Chain Management and air cargo.2. Explain the transport economics, innovation, and total logistics cost.3. Understand transport cost behavior, Collaborative Transport Management and Economic

impacts of transport.4. Identify innovatively and value-added approaches to transport and air cargo.5. Discuss the historical & regulatory foundations in the transport and air cargo industry.6. Industry terminology and abbreviations.

1

7. Define the air cargo industry and understand the basic principles of air cargo planning and management.

8. Define and use the key performance measures in the air cargo industry.9. Describe the types of carriers in the air cargo industry.10. Understand the relationship between international trade and air cargo.11. Solve air cargo-related problems: revenue generation/maximization, distribution cost analysis,

route designing, and planning.12. Explain and discuss the issues facing the air cargo industry today.

Course FormatThe course will conduct a combination of in-class lectures, in-class discussions, online lectures, case studies, individual readings, quizzes, and one project. Lectures are designated to introduce or explain some principles being discussed, but not necessarily cover all the material as presented in the text and outside reading. You are expected to attend all classes and to be prepared to discuss and apply all assigned readings. Students will be called upon to discuss the topics/concepts in class.

GradingGrading will be based on your performance on the following graded element:

Graded element Percent PointsA. Resume 2.5% 25B. Professional Development 5% 50C. Quizzes (6 @ 50) 30% 300D. Homework & Friday Assignments (7 @ 50) 35% 350E. Team Project & Presentation 10% 100F. Exams (Mid-term exam: 50 points; Final exam: 125 points) 17.5% 175

100% 1,000

Note: Students may not be allowed to retake or resubmit graded material, to include assignments, quizzes, homework, projects, and exams. See the section on grade disputes in this syllabus if you have questions about your grade.

Grading Scale

The grading scale is guaranteed. You will receive no less than the grade listed within the appropriate interval and (or) class attendance based on the attendance sheet. Numerical Grades will not be rounded up to the next higher letter grade. However, I may adjust the grading scale for the class, if warranted. I will not post final grades beyond what is available on Blackboard. If you provide reasonable reason with official evidence for your absence which is needed approval in advance, it would be recognizable.

Grade Numerical Range (%)(Primary)

Condition Class Attendance(Secondary)

A 90 - 100 and >= 80%B 80 - <90 and >= 75%C 70 - <80 and >= 70%D 60 - <70 and >= 65%F <60 or =< 50%

No Opportunities for Extra Credit

No extra credit would be available unless it offered to the entire class.

Submitting Assignments and Due Dates: Assignments are due on the date identified in the course

2

schedule and must be uploaded to Blackboard by 2359 hours unless otherwise indicated. I will not accept hard copies of assignments. Any assignment may be uploaded to Blackboard early. As a general rule, I will not accept homework that is emailed.

Correct spelling, grammar, and punctuation expected on all graded material. All assignments will be types (25% point penalty, if not) unless otherwise indicated.

The acceptable formats for assignments include .pdf, .doc, .docx, .ppt, .pptx, .xls, .xlsx. Exceptions to file format must be approved by the professor.

File Naming Convention: Ensure all files uploaded to Blackboard include your last name and assignment title (e.g., Hong_Abstract.doc). Do not use apostrophes or commas in the file name since the file cannot be read in Blackboard.

Lateness: Students are encouraged to turn in all work, even when late. Partial points are better than no points!! The number one reason for poor performance in this class is a failure to do assigned work and quizzes—zeros are not your friend!

Assignments: Late assignments will earn a 10% penalty (one letter grade) for each day past the due date.

Quizzes: Late quizzes will earn a 50% penalty when completed past the due date. Any missed quiz will be available through 2359 hours the night before the exam, after which students may no longer take a missed quiz.

Exams: There are no Make-Up Exams in this course, except for bona fide emergencies as noted below.

The late penalty (late assignments and late quizzes) may be waived with a valid reason beyond the control of the student and with prior approval from the professor. The professor may require documentation to waive the late penalty.

In the event of a bona fide emergency beyond the control of the student, the student should contact the professor as soon as possible. Documentation to support the emergent situation is required before the professor will consider a make-up exam.

A. Resume

Continued refinement of your resume is a habit you should develop and implement throughout your career. As your career objectives and skills change, so should your resume. It is also important, especially since you prepare for internships and job interviews to have your resume “ready to send.” Your first assignment is to submit your resume and release authorization form electronically via Blackboard per the class schedule.

The logistics faculty will use this resume to send to companies that contact us throughout the semesters. No resume updates will accept during the semester after the initial submission with. Make sure it is your best, no excuses. Do it right the first time! You have the right to request your resume not to distribute to potential employees. If you request “no distribution” we will not release your resume to prospective employers upon their request

To receive full points for your resume:1. Name your RESUME using the following convention: LasteName_GraduationSemester_GraduationYear.doc. For example, if Seock Hong plans to

graduate in May 2020, his resume file would be named, “Hong_Spring_2020.doc.”2. Upload your resume to Blackboard by the due date.

3

3. Complete and sign the release authorization form attached to this syllabus. This form is used to indicate whether we may release your resume.

4. Scan a copy of the signed release form and upload to Blackboard with your resume by the due date.

5. Comply with expectation in the grading rubric.

B. Professional development

The UNT professional program in Logistics is very proud of its close relationship with industry and its emphasis on professionalism. You are required to participate in two categories of professional development (PD). This semester the Logistics Executive Lecture Series will feature six executive lecture sessions and four Onboarding sessions allowing students to meet and activity interchange with a logistics executive. For details, go to https://cob.unt.edu/logistics-center/executive-lecture/speakers for executive lectures or to https://cob.unt.edu/logistics-center/onboarding-program for onboarding seminars.

Students are expected to Participate in at least two first PD events during the semester (each event earns 25 points, for a total of 50 points). To receive full credit:

1. You must RSVP no later than 2359 hours the night before the event. If you RSVP and do not attend the event without informing Ms. Julie Willems-Espinoza, you will lose 10 points for the course

2. Cancel your RSVP: To cancel; please email Julie Willems-Espinoza (Julie.Willems-Espinoza@unt.edu).

3. Swipe your ID at the machine or sign the attendance sheet designating LGAV3130.4. If you cannot attend two of these events due to work or class schedule conflicts, contact your

instructor about attending alternative events, which is subject to approval before attending the event. For example, attendance at LogSA (Logistics Support Activity of US Army) or ISM (Institute for Supply Management) meetings with a senior guest speaker, attendance at the local CSCMP (Council of Supply Chain Management Professionals) roundtable meetings, etc. may be approved by the instructor.

5. If you have other activities that you believe qualify for consideration for professional development credit, please seek approval from the instructor before attending the event or meeting. Many of the opportunities are space-limited, so plan early! Note that you will need to attend two unique events for each logistics class that you enroll in.

6. If you swipe your ID and immediately leave, you will lose 10 points for the course.7. If you swipe your ID without RSVP, you would not considered as an attendance.

C. Quizzes

This course includes four times on-line quizzes via Blackboard. You should expect, on average, one on-line quiz every three weeks covering the assigned material. Exceptions to the weekly quiz will announce in class and/or Blackboard. All assigned material (text, lecture slides, outside reading, assignments) and classroom discussions are fair game for each quiz. All quizzes are open notes/open book. Quizzes will include a combination of multiple-choice, true/false, and short answer.

On-line Quizzes: Weekly quizzes will administer via Blackboard. Once you begin taking the quiz on Blackboard, you will have a limited time (approximately 30 minutes) with which to complete the quiz. Therefore, you should be familiar with the material before attempting the quiz. The quizzes are designed to prepare you for the course exams. Therefore, you will see similar questions on the exams.

All quizzes will count toward your final grade. Late Quizzes: Late quizzes will earn a 50% penalty when completed past the due date.

D. Homework

4

Friday Assignments: There will be several assignments throughout the semester that will give instead of an in-person class. These will typically assign in place of a Friday class and due on that Friday, 2359 hours. Friday assignments will be posted in the class schedule in this syllabus or announced in class and will post on Blackboard.

Load Planning Assignment: This is a practical problem to give students an understanding of cargo and aircraft limitations. Specific guidelines and due dates will be uploaded to Blackboard and announced in class.

E. Journals for your references

Below is a list of aviation and trade related journals (not all-inclusive) for your references to further study.

• World Trade• Business Week• Logistics Management• Aviation Week & Space Technology• Inbound Logistics• Transportation & Distribution

Referred Journals: If you want to use a scholarly journal, the journals below are good choices to find relevant articles.    

• The Transportation Journal• Transportation Research• Journal of Air Transportation Management• Journal of Transportation Management• Journal of Business Logistics• The International Journal of Logistics Management• International Journal of Production Economics• Journal of International Economics• Management Science• Decision Sciences

F. Team Project & Presentation

Students are required to research a topic relevant to the course and present an overview of this research during an in-class presentation. Teams of 2-4 students, depending on class size, will be formed to complete this assignment. Presentations will conduct during the last few weeks of the course. Presentation dates will be assigned randomly. No two teams may select the same topic. Specific milestone-assignments for this project are included in the class schedule to keep your project on track.

Your grade on the team project is divided into three parts.1. The first part is the same score for all members of the team (0-100 points).2. The second part of your score is an assessment of your communication skills (5-15 points).3. The third part of your score is a multiplier that I determine for each student based on a peer

evaluation of their contributions to the team. This multiplier is used to adjust the team score (0-100 points) based on your level of effort. There will be a mid-term peer evaluation following the second project deliverable (the outline). The peer evaluation will give each team member an estimate of his or her perceived contributions to the project.

a. It IS possible to earn zero points if you do not contribute to the team project.

5

b. It IS possible to earn more than 100 points if you contributed more than your share of the workload.

c. My experience: Students on teams that collaborate and work will together have a multiplier of 1.0 and earn 100% of the team points.

Grading: Specific guidelines, grading rubrics, and the peer evaluation outline in attachments to this syllabus.

Team collaboration: Each team will have a private discussion forum on Blackboard to collaborate on our project. Use this space to communication, share files, and assign responsibilities. Communication is essential to successful collaboration. However, it is sometimes difficult to coordinate face-to-face meetings. Remember that electronic collaboration may be necessary.

How to contribute to a team:- Set up meetings, timelines.- Consolidate the research.- Edit the consolidation for flow.- Build your slides.- Edit slides.- Spell check, ensure consistency.- Do your part—allocate tasks.- Don’t let your teammates down.- Show up for the presentation.- Share your ideas.

Americans with Disabilities Act: The College of Business Administration complies with the Americans with Disabilities Act in making reasonable accommodations for qualified students with a disability. If you have an established disability as defined in the Ace and would like to request an accommodation, please see me as soon as possible. I can contact at the location and phone number shown in this syllabus. Please note: University policy requires that students notify their instructor within the first week of class that an accommodation will be needed. Please do not hesitate to contact me now or in the future if you have any questions or if I can be of assistance.

Course Grade Appeals, Withdraws, & Incompletes: Please refer to the UNT Undergraduate Catalog for policies governing these actions. If you have any questions, please contact me for clarification. Please note: I only use an incomplete for extraordinary circumstances. An incomplete grade will not be used simply to provide more time to complete the course requirements.

Exam & Assignment Grade Appeals: If you disagree with how any assignment or examination grade, you must submit a written appeal by email or letter within one week after the grade was awarded or the graded work. The written appeal should include your concern or question about your grade, an explanation about why you believe your answer is correct, AND documentation or evidence supporting your belief. Appropriate documentation includes references from the text, course lecture slides, or outside reading from the course syllabus. Appeals without rational supporting and specific reference(s) to the course will return without consideration. Under no circumstances will grades be lowered.

Course Disclaimer: The schedule, policies, and assignments contained in the course syllabus are subject to change in the event of extenuating circumstances, to accommodate class progress, to provide a more in-depth focus or discussion where warranted, to take advantage of a guest speaker, or by agreement between the instructor and students. All changes will be announced in class before the change and posted on Blackboard.

Cell Phones: All cellular or digital phones and pagers are to be turned off during class.

6

Laptops: Laptops and other devices (e.g., iPad) in the classroom may not use for web browsing, email, or activity not directly related to the course content for the day.

Class Schedule Required Reading, & AssignmentsThe schedule, policies and assignments contained in the course syllabus are subject to change in the event of extenuating circumstances, to accommodate class progress, to provide a more in-depth focus or discussion where warranted, to take advantage of a guest speaker, or by agreement between the instructor and students. All changes will announce in class before the change and posted on Blackboard.

Week # Date Topic, Assignments, and Readings

W 1

1 Jan 15Mon

MLK day (No class)

2 Jan 17Wed

Course Overview

2 Jan 19Fri

Supply Chain and Transportation (I)Case: Sara Lee, Hanes, and Walmart

W 2

3 Jan 22Mon

Supply Chain and Transportation (II)Assign teams for project

4 Jan 24Wed

Supply Chain and Air Cargo (I)

5 Jan 26Fri

No class- Quiz (1)Resume deadline till 2359, Jan 28

W 3

6 Jan 29Mon

Supply Chain and Air Cargo (II)Case: Amazon and Air Cargo

7 Jan 31Wed

Air Cargo and Push/PullDue: team Project Deliverable 1 –Topic

8Feb 2Fri

Air Cargo Introduction: MB 1, MB 2Friday assignment (1) Read Boeing CMO (2016) and Airbus GMF (2016)

W 4

9 Feb 5Mon

Freight Fleet

10 Feb 7Wed

Air Cargo Carriers and Aircraft

11 Feb 9Fri

No classQuiz (2)

W 5

12 Feb 12Mon

Demand for Air Cargo (I)

13 Feb 14Wed

Demand for Air Cargo (II)

14 Feb 16Fri

No class Quiz (3)

W 6

15 Feb 19Mon

Air Cargo and Drone (UAV)

16 Feb 21Wed

Forecasting

17Feb 23Fri

Demand and ForecastFriday assignment (2)Due: Team Project Deliverable 2 – Outline

W 7

18 Feb 26Mon

Air Freight market (I): MB 4, MB 5

19 Feb 28Wed

Air Freight market (II): MB 4, MB 5

20 Mar 2Fri

Regulations and Liberalization for Air Cargo (I): MB 3Friday assignment (3)

W 8 21 Mar 5Mon

Air Cargo Competition: Alliances and Mergers (I): MB6

7

22 Mar 7Wed

Mid-Term Exam

23 Mar 9Fri

No Class - Quiz (4): Demand for Air Freight

W 9

24 Mar 12Mon

No Class-Spring Break25 Mar 14Wed

26 Mar 16Fri

W 10

27 Mar 19Mon

Air Cargo Competition: Alliances and Mergers (II): MB6Due: Team Project Deliverable 3 – Revised outline

28 Mar 21Wed

Regulations and Liberalization for Air Cargo (I): MB 3

29 Mar 23Fri

Regulations and Liberalization for Air Cargo (II): MB 3Read Yamato case

W 11

30 Mar 26Mon

Case review of Yamato (I)

31 Mar 28Wed

Case review of Yamato (II)

32 Mar 30Fri

No Class- Preparation of team projectFriday Assignment (4)

W 12

33 Apr 2Mon

Flow and Economic Development (I)

34 Apr 4Wed

Flow and Economic Development (II)

35 Apr 6Fri

Air Cargo Operations: MB 7, MB8Quiz (5)

W 13

36 Apr 9Mon

Load Planning and Distance

37 Apr 11Wed

Freight Forwarder: MB 9

38 Apr 13Fri

No class-Team Project day for deliverable 4Friday Assignment (5)

W 14

39 Apr 16Mon

Transportation Model (I)Due: Team Project Deliverable 4 – Presentation slides (Draft)

40 Apr 18Wed

Transportation Model (II)

41 Apr 20Fri

No class-Team Project day for presentation Friday Assignment (6)

W 15

42 Apr 23Mon

Network design in Supply Chain (I)

43 Apr 25Wed

Network design in Supply Chain (II)

44 Apr 27Fri

Team Project Deliverable 5: Presentations (Final Presentation slides & Peer review)Quiz (6)

W 16

45 Apr 30Mon

Team Project Deliverable 5: Presentations (Final Presentation slides & Peer review)

46 May 2Wed

Team Project Deliverable 5: Presentations (Final Presentation slides & Peer review)

47 May 4 Fri

No Class-Reading day

Final Exam: Saturday, May 5, 2018, 10:30 pm to 12:30 pm

8

Attachment 1Resume Assignment

So, you attend a professional meeting tonight and chat with a vice president with a 3PL. “Looking for an exceptional UNT graduate highly capable of doing great things for your company?” you ask. She replies, “Send me your resume by Noon tomorrow.” 

Now is the time to get your resume in shape. Complete the attached resume cover sheet and post in the Assignments module within Blackboard Learn. To avoid a reduction in participation points, name your resume file using your last name and the term and year of your graduation. For example:

Lastname_GraduationTerm_GraduationYear.doc Example:  Hong_Fall_2020.doc

Failure to properly name your file will result in a penalty of participation points. Late submissions will receive a three-point reduction in their final grade. The logistics faculty will use this resume to send to companies that contact us throughout the semester so make sure it is your very best, no excuses. You have the right to request your resume not distribute to potential employees.

You must complete the form on the following page and turn-in a signed copy as a scanned pdf or Word document (cut and paste out of the syllabus) and post your resume in Blackboard Learn by 23:59 January 28th.

9

Logistics and Supply Chain ManagementResume Posting Authorization

Name your resume file as follows:

Lastname_GraduationTerm_GraduationYear.doc Example:  Hong_Fall_2020.doc

Student name:ID Number:Submit Date:

Please check the appropriate responses:

A Logistics intern position for: o Spring 2018o Summer 2018o Fall 2018o I am not interested in a Logistics related

internship

A part-time position in Logistics: o Spring 2018o Summer 2018o Fall 2018o I am not interested in part-time employment in

Logistics

Post-graduation permanent professional employment:

o Spring 2018o Summer 2018o Fall 2018o I will not be seeking jobs in the logistics field

Release my resume: o The University of North Texas has permission to distribute my resume to prospective employers.

o Please do not release my resume. It is submitted for a class requirement only.

Signed: _______________________________________

10

Attachment 2Resume Rubric

Learning Outcome

Exceeds Expectations Meets Expectations Approaches Expectations

Below Expectations Awarded/ Possible Points≥ 90% ≥ 80% ≥ 70% ≤ 70%

Presentation Format & Compliance with Syllabus

- Typed (.doc or .pdf)- Eye appeal with

balanced margins- Format highlights

strengths and information

- Varied and professional fonts and point size

- File names comply with syllabus

- Signed Resume Release Form complies with the syllabus

(10 –9 points)

- Typed (.doc or .pdf)- Balanced margins- Format identifies strengths and information- Appropriate fonts and point size- File names comply with syllabus- Signed Resume Released Form complies with the syllabus

( 8 –8.9 points)

- Typed (.doc or .pdf)- Somewhat balanced margins- Format identifies strengths and information- No variation in fonts and/or point size- File names do not comply with syllabus- Missing or incomplete Resume Release Form

( 7 –7.9 points)

- Typed (.doc or .pdf)- Unbalanced margins- Format identifies strengths and information- Fonts distract from readability- File names do not comply with syllabus- Missing or incomplete Resume Release Form

( < 7 points)

/5

Job Specific Information

- All power/action phrases used to describe duties and skills

- Information demonstrates ability to perform the job

- Professional terminology used when describing skills

(10 –9 points)

- 1-2 duties/skills lack action phrases

- Information demonstrates ability to perform the job

- Some professional terminology used when describing skills

( 8 –8.9 points)

- 3-4 duties/skills lack action phrases

- Some information demonstrates ability to perform the job

( 7 –7.9 points)

- 5-6 duties/skills lack action phrases

- Information does not clearly demonstrate ability to perform the job

( < 7 points)

/7.5

Resume Content

- Header, Objective, Education, Skills, Experience covered in detail- Name, address, phone #, email- Extra information was given to enhance resume

(10 –9 points)

- Header, Objective, Education, Skills, Experience covered in some detail- Name, address, phone #, email- Extra information was given to enhance resume

( 8 –8.9 points)

- Header, Objective, Education, Skills, Experience covered with little detail- Name, address, phone #, email- Minimal extra information was given to enhance resume

( 7 –7.9 points)

- Missing one of the following: Header, Objective, Education, Skills, Experience- Name, address, phone #, email- No extra information was given to enhance resume( < 7 points)

/7.5

Spelling & Grammar

- No spelling errors- No grammar errors

(10 –9 points)

- 1-2 spelling errors- 1-2 grammar errors

( 8 –8.9 points)

- 3-4 spelling errors- 3-4 grammar errors

( 7 –7.9 points)

- 5-6 spelling errors- 5-6 grammar errors

( < 7 points)

/5

Total Score: /25

11

Attachment 3Professional Development in Logistics

Professionalism: The UNT Professional Program in Logistics is very proud of its close relationship with industry and our emphasis on professionalism. This semester the Logistics Executive Lecture Series has planned at least six Friday Noon to 1 PM sessions allowing students to meet and actively interchange with logistics executives and at least four On-boarding sessions. You must complete your first professionalism activity before February 28th.

Attendance at the same event to fulfill a requirement for another course or program will not count.  You will not receive credit if you have not RSVP’d.  If you RSVP and fail to attend, 10 points will deduct from your final grade.  You can make up these points by attending another presentation. 

If you cannot participate in these events due to work or class schedule conflicts, you may find an alternative such as an evening professional meeting.  My goal is that you can interact with a corporate executive.  Attendance of a career fair or attendance of a student interest group (such as AMA, LOGSA, or SAA) will not count as a substitute unless a c-level executive is speaking and the presentation has to get approve in advance.  Any alternative must be approved by Dr. Pohlen and Dr. Hong at least 24 hours before attending the event, and you will be asked to provide the c-level executive’s business card as proof that you interacted with the executive.   The Learn grade book will reflect your participation as soon as the signature sheets are received.

Dean Wiley is mandating that ALL CoB students attend sessions including professional dress and resume reviews before them attending any recruiting events such as the Business Fair.

You can obtain information about the speakers and their scheduled dates by accessing the logistics center website at http://www.cob.unt.edu/logisticscenter/events.php.

Logistics Executive Lecture SeriesPlease refer to Web page:  https://cob.unt.edu/logistics-center/executive-lecture/speakers

Logistics Onboarding Program SessionsRefer to Web page:  https://cob.unt.edu/logistics-center/onboarding-program

12

Attachment 5: Abbreviations

ACMI Aircraft, Crew, Maintenance, and InsuranceATC Average Total CostATK Available Ton KilometerATM Available Ton-MileATS Automated Targeting SystemAWB Air WaybillBAX Burlington Air ExpressBDI Baltic Dry IndexBELF Break Even Load FactorBTS the Bureau of Transportation StatisticsCAB Civil Aeronautics BoardCAGR Compound Annual Growth RateCATK Cost per Available Ton KilometerCATM Cost Available Ton-MileCB Center of BalanceCBP Customs and Border ProtectionCCR Commodity Classification RateCCSP Certified Cargo Screening ProgramCF Consolidated FreightwaysCFR Code of Federal RegulationsCMO Current Market OutlookCRAF Civil Reserve Air FleetCRS Computer Reservation SystemDHS Department of Homeland SecurityDOD Department of DefenseDOT Department of Transportatione-CSD electronic Consignment Security DeclarationFAA Federal Aviation AdministrationFFPs Frequent Flyer PlansFTK Freight Ton KilometerFTM Freight Ton-MileFTZ Free Trade ZonesGATS General Agreement on Trade in ServiceGATT The General Agreement on Tariffs and TradeGCR General Cargo RateGCR General Commodity RateGDP Gross Domestic Product GMF Global Market ForecastGNP Gross National ProductHAWB House Air WaybillIATA The International Air Transport AssociationICAO International Civil Aviation OrganizationISM The Institute for Supply ManagementJVs Joint VenturesLF Load FactorLPI Logistics Performance IndexMAWB Master Air WaybillMC Marginal CostMFN Most Favored NationsMR Marginal RevenueNAFTA The North American Free Trade AgreementNASCAR The National Association for Stock Car Auto RacingNUMMI New United Motor Manufacturing Inc.OAG Official Airline GuidesPPB Principal Place of BusinessPMI Purchasing Managers IndexPPBM Positive Passenger Baggage MatchingPPP Purchase Power of Parity

13

PSI Principal Security InspectorsQC Quick ChangeREA Railway Express AgencyRFID Radio Frequency IdentificationRFTK Revenue Freight Ton KilometerRFTM Revenue Freight Ton-MileRDL Reference Datum LineRL Reference LineRTK Revenue Ton KilometerRTM Revenue Ton-MileSCCO Supply Chain Coffee OperationSCM Supply Chain ManagementSCOR Supply Chain Operations ReferenceSCR Specific Commodity RateTRIPS Trade-Related Aspects of Intellectual Property RightsTSA Transportation Security AdministrationTSI Transportation Services IndexTWA Transcontinental & Western AirULD Unit Load DeviceUVA Unmanned Aircraft VehicleWB Weight and BalanceWTO World Trade Organization

14

Attachment 6: Team Project Guidelines

Purpose: To research a topic relevant to the air cargo industry and give an oral presentation to the class. When selecting a topic, the focus should be on challenges facing the industry. The deliverables for the team project are listed below. The due dates will announce in the class schedule.

Student Teams: Teams, comprised of three or four students, will research a topic and prepare a formal presentation to the class. Each team will select a topic related to the Air Cargo Industry. No two teams may choose the same subject. The topic will be de-conflicted after the first deliverable. If two teams select topics that are similar, I will contact those teams and help to move the research in two different directions.

Deliverables: There are six deliverables for this project. The first four are milestone assignments to ensure the project is on track.

1. Deliverable I: Topic and Purpose (5 points)a. Tentative Title of Presentationb. Prepare a one-paragraph summary that describes the intended objective of the presentation.c. Upload to Blackboard

2. Deliverable II: Outline (5 points)a. Prepare an outline of the presentationb. Outline should include

i. Motivation. Why is the topic important? Why should we care about the topic? ii. Background information. How the topic fits within the industry? iii. The key challenges facing the organization or relevant to the topic. iv. Stakeholders. Who is affected and what is the impact on the stakeholders. v. Solutions or strategies to address these key challenges. vi. Advantages or disadvantages with the solutions/strategies vii. Recommendations. Which would solutions or strategies recommend? What can be done to

eliminate the disadvantages or challenges? What improvements can make?c. Upload to Blackboard

3. Mid-Project Peer Evaluationa. Upload the Peer Evaluation Form to Blackboard

4. Deliverable III: Revised Outline (5 points)a. Based on my feedback, your outline will revise.b. Upload to Blackboard

5. Deliverable IV (25 points) and Class presentation (60 points):a. Prepare a 15-20-minute class presentationb. PowerPoint slides are required c. Include notes in the note section of each slide. Instead of a written report, all supporting information

and sources will include in the notes section of the PowerPoint file. The notes section should include the detailed information to support each point on the main presentation slide.

d. Upload PowerPoint slides to Blackboard (Deliverable IV).e. On the day of your presentation, turn in a printed copy of your presentation in the “note pages”

format. The notes section will grade for content.f. The slide presentation should divide among the students on the team. Each student on the team is

required to present his/her portion of the team research.6. Peer Evaluation: Each student will complete a peer evaluation on themselves and their team members.

The mid-project peer evaluation will give you an idea of how your team members perceive your contributions to the team project. (5-15 points, will be influenced by your total score of the team project)

Potential Topics: Below is some ideas that would make a good research project and presentation.1. In-depth analysis of an Industrial Airport: effect on carriers and region2. The impact of emissions standards in EU3. Future aircraft innovations: impact and uses4. Unmanned aircraft: Impact on air traffic5. Alternative fuels in aviation6. Safety—Incident and accident assessment7. Aircraft Manufacture: challenges and future

Your research should investigate the challenges facing the air cargo industry today. The team project is NOT

15

merely a background report. Your presentation should give us an understanding of the problems, issues, alternatives, and possible solutions.

The Research: While each project will be slightly different, below are the most common types of information you should include in your presentation:

1. Motivation: Why should we know more about this topic? Why is the topic important?2. A brief overview of the issue or topic. The history of the theme should keep to a minimum. The

presentation is not merely what has happened in the past, but what is important today and in the future.3. What are the challenges for the industry?4. Who are the major stakeholders?5. Are there different sides to the issues (advocate/opponents)?6. What is the impact to the stakeholders?7. What is the impact on the industry?8. What is the status?9. What is the outcome?10. What happens next? Recommendations.11. Data should be used whenever possible

The Presentation Guidelines:

1. Presentations should be no shorter than 15 minutes and no more than 20 minutes in length, to include questions.

2. The oral presentation should divide among all team members.3. Power Point slides:

a. Include the motivation: Tell us why this topic is important.b. Include and introduction and conclusion: i. Tell us what you are going to tell us. ii. Tell us what you just told us.c. Slides (format, font, and theme) should be consistent.d. Avoid putting too much information on one slide. You do not want your audience to “read” the slides,

but rather listen to what you have to say.4. Practice briefing your slides:

a. You should know the material well enough to present your slides without relying on your notes.b. Remember to maintain eye contact with the audience.

16

Attachment 7: Team Project Rubric

Learning Outcome

Exceeds Expectations Meets Expectations Approaches

Expectations Below Expectations Awarded/Possible Points≥90% ≥80% ≥70% <70%

Originality & Clear Definition of Purpose

The presentation is original and interesting. The audience is engaged.

The main topic is clearly provided, along with an overview of the presentation.

Explains why the topic is important.

(20-18 points)

The topic may not be original but is made interesting for the audience.

The main topic is clearly provided, along with an overview of the presentation.

Explains why the topic is important.

(17.5-16 points)

The topic may not be original but is made interesting for the audience.

The main points are not clearly identified, and it is hard to understand the purpose of the presentation.

Explains why the topic is important.

(15.5-14 points)

The presentation has difficulty holding the audience interest.

The most important points are not clearly identified, and it is difficult to understand the purpose of the presentation.

It is not clear why the topic is important.

(< 14 points)

/20

Background and issues

Clearly identifies the key points, issues or challenges.

Provides ample supporting detail to capture the key points.

Provides sufficient background information so that the audience understands the key points.

(25-22.5 pts)

Clearly identifies the key points, issues or challenges.

Provides some supporting detail to capture the key points.

Provides some background information but also includes extraneous or loosely related material.

(22-20 pts)

The key points, issues, or challenges are not clearly identified and must infer.

Includes some details but includes extraneous or loosely related material.

The presentation is not concise-may be repetitive or contain unnecessary material.

(19.5-17.5 pts)

Includes inconsistent or few details which may interfere with the meaning of the presentation-no clear attempt to communicate in a concise, direct manner.

(< 17.5 pts)

/25

Finding, Recommendations, or Way Ahead

Identifies the importance or the findings and conclusions (answers the “so what” question). Provides sufficient evidence to support the findings or conclusions.

Makes a recommendation or way ahead that support evidence.

(25-22.5 pts)

Findings and conclusions are not surprising and as one would expect.

Provides sufficient evidence to support the findings or conclusions.

Recommendation or way ahead is not fully formed.

(22-20 pts)

Findings and conclusions are not surprising and as one would expect.

Provides limited evidence to support the findings or conclusions.

Recommendation or way ahead is not fully formed.

(19.5-17.5 pts)

No attempt is made to provide conclusions or recommendations.

The presentation does not include a recommendation or way ahead.

(< 17.5 pts)

/25

Writing and Communication: Spelling and Grammar

Consistently follows the rules of standard English

Follows the rules for standard English.

Includes a few typographical or spelling errors with no

Does not follow the rules for standard English.

Includes a few typographical errors

Does not follow the rules for standard English

Several spelling and major grammatical

/10

17

(5-4.5 points)

grammatical errors.

(4 points)

with minor grammatical errors

Inaccuracies make the abstract moderately difficult to read.

(3.5 points)

errors.

Inaccuracies make the abstract very difficult to read.

(< 3.5 points)Format Note pages include

sufficient supporting material so that a reader would understand the main points and conclusions without having heard the presentation.

Full citations included in the note pages.

The presentation is divided equally among team members.

(5-4.5 points)

Note pages include sufficient supporting material so that a reader would understand the main points and conclusions without having heard the presentation.

Full citations included in the note pages.

The presentation is not divided equally among team members.

(4 points)

Note pages provide some of the supporting material, but not enough for a reader to fully understand all of the points from the oral presentation.

Citations are incomplete in the note pages.

The presentation is not divided equally among team members.

(3.5 points)

Limited attempt to include supporting material in the note pages. A reader could not fully understand all of the points without the benefit of the oral presentation.

Citations are missing or too incomplete to identify the source in the note pages.

The presentation is not divided equally among team members.

(< 3.5 points)

/5

Handling of questions

Questions answer with evidence obtained from the research of the topic.

(5-4.5 points)

Questions are answered, but may not be fully supported with evidence obtained from the research.

(4 points)

Questions are not fully answered.

(3.5 points)

No effort is attempted to answer questions.

(< 3.5 points)

/5

Good Use of Time

Just the right amount of information is included in the presentation to take full advantage of the time allotted for the presentation.

The presentation is neither too fast nor too slow.

(5-4.5 points)

The presentation is within ± 5 minutes of the allotted time.

The presentation is neither too fast nor too slow.

(4 points)

The presentation is within ± 5 minutes of the allotted time.

The presentation is either too fast, and too much information was attempted for the allotted time. Alternatively, too little information was presented.

(3.5 points)

The presentation is within ± more than 10 minutes of the allotted time.

(< 3.5 points)

/10

Total Score /100

Attachment 8: Peer Evaluation Form

Your personal score on the team project divided into three parts.

18

1. The first part is the same score for all members of the team (25 points).2. The second part of your score is an assessment of your communication skills (50-60 points).3. The third part of your score is a multiplier that I determine for each student based on this peer evaluation form.

Team Projects Overview: There are several advantages to team projects. Teams allow students to work on larger projects by distributing the workload, sharing ideas, and jointly helping team members acquire knowledge and skills. In the process, students learn more than they could have on their own. At the same time, negative behavior can hinder team learning. Dominating team members may stifle the ideas or contributions of other members. Alternatively, a student may shirk his or her portion of the workload placing a greater burden on the remaining team members.

The purpose of the grade multiplier is to reward high-performing teams and adequately adjust the individual grades in the case of lower-performing teams. In a high-performing team, where each student shares in the learning process, students should expect to receive the same grade on the project. However, when the workload or learning is not fairly dispersed, the project grades should be reflective of this negative behavior.

Peer Evaluation: You will rate yourself and your teammates in the areas of Leadership, Technical support, and Research. In each category (Defined below), you will allocate 100% of the effort. From the aggregate scores, a multiplier will be derived ranging from 0-Nx100%, where N is the total number of the team. On high-performing teams, the multiplier will most likely be close to 00% with each team member receiving the same project grade.

Leadership

Your view of each member's leadership contribution, to include (but not limited to):- Organizing team meetings- Keeping the team on-task- Coordination of project components

Technical

Your view of each member's technical contribution, to include (but not limited to):- Writing and editing- Preparation of presentation slides- Organizing content

Research

Your view of each member's research effort, to include (but not limited to):- Library and internet search- Finding support material- Developing the main points and evidence

Your Name:

Effort Allocation: Please place you allocation of effort in the appropriate locations in the table below. Each column must add to 100%. If you feel that several (or all) of your team members contributed equally, it is a straightforward matter to divide 100% by N, where N is the total number of students on the team (e.g., 33 1/3%, 33 1/3%, and 33 1/3% for a 3-member team). You may also recognize that everyone has different strengths that equally contribute to a successful team. For example, one team member may excel in leadership qualities, another in the technical aspects of bringing the project together, while the last member excels in research. In this case, you may rotate the weight in each category among the names (e.g., Leadership: 50%, 30%, 20%, Technical: 30%, 20%, 50%, Research: 20%, 50%, 30%).

Effort allocation is required; my experience has been that your evaluation of your efforts will be at least as high as your team's assessments of the same work ("Nobody knows the trouble I have seen"). Comments are optional (but help me a lot). Specific information will be kept confidential.

19

Leadership Technical Research

This column must add to 100%

This column must add to 100%

This column must add to 100%

Your Name:

Team Member Name:

Team Member Name:

Team Member Name:

Total (Must equal 100%)

Comments (be honest each team member).

20

Attachment 9: UNT College of Business Student Ethics Statement

As a student at the UNT College of Business, I will abide by all applicable policies of the University of North Texas, including the Student Standards of Academic Integrity, the Code of Student Conduct and Discipline and the Computer Use Policy. I understand that I am responsible for reviewing the policies as provided by the link below before participation in this course. I understand that I may sanction for violations of any of these policies by procedures as defined in each policy.

I will not engage in any acts of academic dishonesty as defined in the Student Standards of Academic Integrity, including but not limited to using another's thoughts or words without proper attribution (plagiarism) or using works in violation of copyright laws. I agree that all assignments I submit to the instructor and all tests I take shall be performed solely by me, except where my instructor requires participation in a group project in which case I will abide by the specific directives of the instructor regarding group participation.

While engaged in on-line coursework, I will respect the privacy of other students taking online courses and the integrity of the computer systems and other users' data. I will comply with the copyright protection of licensed computer software. I will not intentionally obstruct, disrupt, or interfere with the teaching and learning that occurs on the website dedicated to this course through computer "hacking" or in any other manner.

I will not use the university information technology system in any manner that violates the UNT nondiscrimination and anti-sexual harassment policies. Further, I will not use the university information technology system to engage in verbal abuse, make threats, intimidate, harass, coerce, stalk or in any other manner which threatens or endangers the health, safety or welfare of any person. Speech protected by the First Amendment of the U.S. Constitution is not a violation of this provision, though fighting words and statements that reasonably threaten or endanger the health and safety of any person are not protected speech.

Students Standards of Academic Integrityhttp://policy.unt.edu/sites/default/files/untpolicy/pdf/7-Student Affairs-Academic Integrity.pdf

Code of Student Conduct Disciplinehttp://conduct.unt.deu/sites/default/files/pdf/code of student conduct.pdf

Computer Use Policyhttp://policy.unt.edu/policy/3-10

I agree:

Signature: Printed name:

21

Attachment 10: References: YouTube video

1. 100 years of air cargo (10 min 33): https://www.youtube.com/watch?v=kqJgIpICbfA

Take a look at 100 years of air cargo flight in Germany: The logistics industry is duly celebrating this very special Jubilee of its origins on its centennial anniversary. On 19 August 1911, a single-engine Harlan took off from a grass strip in Berlin-Johannisthal carrying just cargo. One hundred years since that first air cargo flight in Germany, airfreight is indispensable for the transport of goods in the global economy (Uploaded on Sep 6, 2011).

2. Behind the Scenes @American Air - AA Cargo (3 min 23): https://www.youtube.com/watch?v=WjHqfhGxtE8

3. Vision of the World's Best Cargo Terminal (4 min 44): https://www.youtube.com/watch?v=1r2slr7Ojec4. Cargo Handling Systems (2 min 36): https://www.youtube.com/watch?v=0kyPXHarMIk5. Air cargo handling systems (5 min 10): https://www.youtube.com/watch?v=clsuRCFJOkI6. Korean Air Cargo Boeing 747-400F: https://www.youtube.com/watch?v=c4L7ixucFVQ7. Airbus A380 - Megastructures Documentary - National Geographic Documentary:

https://www.youtube.com/watch?v=GPXdeCT7Nic 8. Airbus A380 Delivery: Logistics Challenge: https://www.youtube.com/watch?v=drlswuwWqs09. Inside the FedEx Memphis “Super Hub” (2 min 7): https://www.youtube.com/watch?v=iYzQ7JSBIGU10. Fed Ex Ant Hill (3 min 36): https://www.youtube.com/watch?v=CzsXqawswPc11. Inside UPS (3 min 47): https://www.youtube.com/watch?

v=VQReRnmCaqA&feature=autoplay&list=PL517B6F8D326684E4&lf=rellist&playnext=212. How UPS Works (3 min 54): https://www.youtube.com/watch?

v=pcsk9nEKPGM&index=3&list=PL517B6F8D326684E413. InteliBuild - Cathay Pacific Cargo Terminal – Operations (4 min 50): https://www.youtube.com/watch?

v=nU3q-GT-9IY14. Southwest Airlines "Day in the Life of Cargo" (4 min 30): https://www.youtube.com/watch?

v=ShfNzRP6Zxs&feature=relmfu

22

Case 1Transportation Directional Imbalance: Sara Lee and Walmart

… Sara Lee was already using a fair amount of offshore manufacturing in Latin America in the late 1980s, and bringing the clothing in through ports in the southeastern United States, from where it then traveled by truck to Sara Lee distribution centers and then from Sara Lee warehouses to Wal-Mart warehouses. The team quickly discovered that Wal-Mart had hundreds of trucks driving north on I-95 from Florida, mostly empty after delivering merchandise to Florida stores.

Why not fill those empty trucks with underwear and socks, and stop using Sara Lee trucks altogether? (Source, Fishman, 2007, p64)

- Offshore vs. outsourcing- Directional Imbalance- Combine in and out transportation

23

Case 2Delivering Quantity: Hanes and Walmart

Hanes was sending men's and boys' underwear to Wal-Mart stores in cases of six-dozen packages. "It was more than a store could handle," say, Caldwell. "The store would order half a case. So Wal-Mart was picking the underwear up at our distribution center, hauling it to their place, breaking open the case to supply underwear on a partial case basis." Sara Lee's people said, "That is crazy." They quickly came up with a three-dozen package cast to allow stores to order the underwear in smaller quantities without having to have someone manually open every shipping carton and break the packages out into smaller groupings. “Imagine how much money that saved in Wal-Mart's distribution centers, at a very modest out-of-pocket cost to Sara Lee," says Caldwell. "And that cost was more than made up for in the increased sales in the stores as a result of a reduction in stock-outs." Stores ordered more precisely, more routinely.

Those two changes in distribution, says Caldwell, "reduced total costs for the two companies between 1.5 percent and 2 percent"-large amounts of money, given the volumes involved. (Source, Fishman, 2007, p65)

- Order Quantity- Meet Customer need- Stock out and Markdown- Order precisely

-

24

Case 3Wal-Mart: Waste of Package

# 1) Starting in the early 1990s, a change swept through a line of deodorant that most adult Americans use every day. Until then, nearly every brand and style of deodorant – roll-on and solid, powder-fresh and unscented – came in a paperboard box. You opened the box, pulled out the container of deodorant, and pitched the box in the garbage.

In the early 1990s, Wal-Mart, among other retailers, decided the paperboard box was a waste. It added nothing to the customer’s deodorant experience. The product already came in a can or a plastic container that was at least as tough as the box, if not tougher. The box took up shelf space. It wasted cardboard. Shipping weight of the cardboard wasted fuel.

The itself cost money to design, to produce – it even cost money to put the deodorant inside the box, just so the customer could take it out. With the kind of quiet but irresistible force that Wal-Mart can apply, the retailer asked deodorant makers to eliminate the box. Unbox the antiperspirant.

For a more detailed analysis of this topic, see The Wal-Mart Effect: How an Out-of-Town Superstore Became a Superpower by Charles Fishman (2006, Penguin Books))

# 2) Wal-Mart announced to cut supplier packaging by 5%. The move would save the company $3.4 billion. Wal-Mart would begin to "measure" its suppliers in 2008 and recognize them for using less packaging, utilizing more effective materials and sourcing the materials more efficiently. The move would also cut the amount spent on packaging in the supply chain by $10.98 billion overall, the company said. (Source: Copyright © 2006 Reuters, September 22, 2006.Also in Traffic World, October 2, 2006; p. 17)

# 3) Wal-Mart saves millions on toy package redesign. Saved the company $3.5 billion in transportation costs last holiday season due to more efficient packaging of toys. By reducing the amount of packaging used for toys made in Asia and shipped to the US, the retailer utilized 727 fewer ocean containers and saved 1,300 barrels of oil. Developing sustainability index to measure the impact of its goods on the environment. (Source: WT 100, Nov. 2009; p. 8)

25

Case 4Yamato Transport Ltd. - Calculate Willing-To-Pay

Ski Transportation

In the Nagano Prefecture, delivery volume plummeted once the apple harvest was. During winter, drivers noticed how people carried their skis to resorts in the area. Lugging skis, boots, and poles to the ski lifts was obviously a miserable way to spend one’s pastime, and drivers suggested offering a ski transportation service, which Yamato introduced in 1983. Yamato picked up the skis and delivered them slope side. The ski transportation service was a potentially attractive market for Yamato because Japan had more than 15 million skiers who on average went skiing 5.5 times per year, mostly on weekends.

The ski transportation market was much smaller than the 393-billion-yen market for ski equipment. The average skier spent more than 100,000 yen annually, much of it on skis, which cost 70,000 yen and were bought about every four years. An alternative was to rent skis from one of the many resorted-based rental places for about 3,000 yen a day. Following the success of the ski transportation service, Yamato transported about 5 million skis a winter-a golf bag delivery service was launched the next year.

Super Express Takkyubin

Yamato was good at reaching quickly when new opportunities arose. An example was the creation of “Super Express Takkyubin,” a service introduced in Nov. 2003 for which Yamato used planes from All Nippon Airways (ANA) to guarantee next-day delivery to distant locations. Super Express became attractive after the government started to enforce lower speed limits on highways, which made it difficult to move goods using truck from Hokkaido to Tokyo overnight. Hokkaido, the northern island in Japan, was a major source of seafood and agricultural products, the timely delivery of which was crucial.

For example, scallops caught in the Sea of Okhotsk sold in Tokyo at 250 yen when fresh, while frozen or boiled scallops valued at 150 yen. The sale of fresh scallops, however, depended on the availability of overnight transportation. For Super Express to become a financial success, Yamato needed to identify demand for shipping services from Tokyo to Hokkaido, as it would be prohibitively expensive to charter planes (3 million yen in one way) that only transported goods in one direction. A customer survey showed that chocolate producers based on the northern island often bought cacao from vendors in Tokyo area. Yamato’s Super Express also promised to be popular with Hokkaido department stores, which carried a more limited selection of items and depended on the rapid shipping of products from large stores in Tokyo.

Yamato conducted a market survey among a representative sample of customers to determine the feasibility and pricing of the Super Express Takkyubin. The results of this survey reproduced in Table 1. Yamato estimated that there were 2,300 customers interested in transporting goods from Tokyo to Hokkaido. The pool of clients wanting to ship parcels from Hokkaido to Tokyo was somewhat smaller, probably about 1,500 customers. In both directions, each client was expected to transport ten boxes in average using Boeing 777 aircraft with a transport capacity of about 4,000 packages from ANA.

26

Table 1 Takkyubin Super Express Market SurveyTokyo to Hokkaido Hokkaido to Tokyo

WTP (Yen) # of respondents WTP (Yen) # of respondents400 2 400 0600 5 600 0800 6 800 9

1,000 15 1,000 161,200 3 1,200 81,400 1 1,400 31,600 1 1,600 81,800 0 1,800 12,000 4 2,000 12,200 0 2,200 0

Hedonic pricing model

A hedonic model of prices is one that decomposes the price of an item into separate components that determine the price. A simple, and common, example is that the price of a house may depend on its size, its location, and other factors. It is possible to construct a better model (especially when trying to construct a predictive model) by separating these factors. A hedonic model does not necessarily separate all the factors that could be separated, only those that affect the usefulness to a buyer of what is being sold. A good model should also separate out other factors: for example, a model of house prices should also separate out interest rates. One use of hedonic models is to adjust measures of inflation. The difference this makes is most significant for products that are not directly comparable with those that were sold in the past because technology has improved. Consider an entry-level personal computer bought today compared with one bought ten years ago: the price is not greatly different, but it is much cheaper than the price of a similar computer bought ten years ago. The adjustment that is needed is more complex than it may appear, as it should reflect the increase in usefulness (strictly speaking utility) of a product to customers. A computer that is ten times faster with ten times as much memory etc. is not necessarily ten times more useful to a customer, and it is the increase in usefulness that is being measured. The actual modeling can be quite complex, as shown by this description of the calculation of a hedonic price measurement for clothes dryers. Hedonic price factors are not usually of much importance to investors except when doing detailed modeling of product prices. This will only occur when doing very detailed models or when looking at prices that can naturally be decomposed into hedonic elements (such as house prices).

27

Friday Assignment 1 for LGAV 3130 (50 points)-Comparison of Freighter Aircraft

Freighter aircraft have in the past all derived from passenger or military models. As a result, from time to time proposals are put forward for new designs dedicated to freighters. The current high price of fuel and climate change concerns are also reinforcing the argument for new models sacrificing speed for increased payload, fuel efficiency, and unit cost.

Choose one freight aircraft and describe payload (ton), volume for cargo (cu. M), range (km or miles), the number of pallets (main deck and lower deck), fuel capacity, and compare competitors’ aircraft, such as B747-8F vs. A380F with advantages/disadvantages of each aircraft.

Due date: 2. 4. 2018

Requirement: 1. The title of the report and name with submission date. 2. Make table(s) with the table title and source of the table. 3. At least one page with 12 font and single line spacing. 4. Write source, date (if the source is newspaper or magazine) and publishing year for an

academic article.

Example of B737F vs. A320F or can choose passenger aircraft, but compare cargo aspect such as A320 vs. B737-900 as followings;

Table 1 Comparison B737F and A320FA320F B737-800F

Range 3,300 NM 3,115 NMMax takeoff weight lbs. (tons) 172,000 lbs. 154,500 lbs.Payload capacity lbs. (tons) 36,000 lbs. 37,500 lbs.Pallet capacity upper deck 13 (LD3) 14 (LD3)Pallet capacity lower deck 7 (LD3) 7 (LD3)Baggage Capacity 1,322 cu. ft. 1,592 cu. ft.Fuel Capacity 6,400 gal. 6,875 gal.Fuel Cost 11.645 USD/NM 13.245 USD/NMetc… --- ---

Source, Boeing (2015), Airbus (2016)

Moreover, choose which aircraft would be better regarding freight along with robust and weak points.

28

Friday Assignment 2 for LGAV 3130 (50 points)-Summarization of WACF or GMF

Please read, summarize following references and compare air cargo market between Boeing and Airbus.

1. Boeing’s WACF (World Air Cargo Forecast): 2016-2017 or2. CMO (Current Market Outlook); 2016-2035 or 3. Airbus GMF (Global Market Forecast) 2016-2035

The summarization has to include an opinion on air cargo for the future as well as an answer from 1 to 6 at least.

1. Explain general aspect of air cargo market. Is there any particular thing for Boeing (or Airbus) describe to market characteristics?

2. Analyze Air cargo market in North America and North America to another market.- South America and South America to another market- Intra-Europe and Europe to another market- China and China to another market- Intra-Asia and Asia to another market- Middle East (ME) and ME to another market

3. How many freight fleet needed in 20 years (2014-2034) in the world and by region? Compare Boeing and Airbus

4. Explain air cargo forecast methodology and how to predict the market Boeing and Airbus?5. Factors and constraints for air cargo growth.6. etc.

Due date: 2. 26. 2018

Requirement: 1. Word file format and at least two pages with 12 font and single line spacing. 2. Write source and page number when referring the books and articles.

29

Friday Assignment 3 for LGAV 3130 (50 points)-Joint Ventures in Airline industry

JVs are revenue-sharing or profit-sharing partnerships between carriers on international routes. In fact, JVs can be recalled as metal neutral alliances, as such airline gets its revenue portion regardless of who operates the actual aircraft in a route-to-route basis. More recently, airlines have set up joint ventures to serve specific markets which have made airline partners’ revenue from the JV independent of the airline which flies the passenger. Carriers pool flights, determine schedules and rates. Each carrier sells space on all the flights in the pool. Revenue & costs distributed to the carriers according to a pre-determined agreement based on Gov’t approval (anti-competitive considerations).

Take a case of the joint venture and explain it using following example.

Due date: 3. 4. 2018

Requirement:1. At one page with 12 font and single line spacing.2. Write source, date (if the source is newspaper or magazine) and publishing year for an

academic article. 3. Air cargo case is preferable.4. Detail on JVs including exchanged routes and other things

Example of UA/CO vs. ANA;1) The trans-Pacific joint venture connects 295 U.S. cities, 43 Japanese cities, and 11 routes

between the two countries with nearly 120 flights per week. 2) The carriers also are coordinating fares and schedules for travel to and from certain other points

in Asia, Latin America, and the Caribbean.

30

Friday Assignment 4 for LGAV 3130 (50 points)-Yamato Case: Pricing policy

Due date: 4. 1. 2018Name:

Tokyo to Hokkaido

WTP (Yen)

# of respondents

Demand at Each Price

Demand (scaled) at Each Price

Demand (scaled)

for Box at Each Price

Airplanes Needed

Rounded

Revenue (Yen)

Cost (Yen)

Profit (Yen)

Profit from Round Trip

(Yen)

400 2 37 2300 600 5 35 800 6 30      

1,000 15 24      1,200 3 9      1,400 1 6      1,600 1 5      1,800 0 4      2,000 4 4      2,200 0 0      

Hokkaido to Tokyo

WTP (Yen)

# of respondents

Demand at Each Price

Demand (scaled) at Each Price

Demand (scaled)

for Box at Each Price

Airplanes Needed

Rounded

Revenue (Yen)

Cost (Yen)

Profit (Yen)

400 0 46 1500 600 0 46 800 9 46

1,000 16 37 1,200 8 21 1,400 3 13 1,600 8 10 1,800 1 2 2,000 1 1 2,200 0 0

Q1: Choose WTP (Yen) based on your calculation to maximize the profit of the company?Q2: How many plane(s) needed to maximize profit?Q3: Describe recommendations for future market development.

31

Friday Assignment 5 for LGAV 3130 (50 points)-Center of Gravity (Load Planning)

(Q1: Center of gravity technique) The Burger Doodle suppliers located four different places. The company wants to construct a new central distribution center to consolidate and transport to airport. The forwarder transports freight in 40-foot truck trailers, each with a capacity of 38,000lbs.

The locations of the four customers, A, B, C, and D, and the annual number of trailer loads that will transport to the distribution center shown below. Please find out the best location of a new central distribution center for Burger Doodle air freighter forwarder using center-of-gravity.

Due date: 4. 15. 2018

A B C D

xA = 100 xB = 100 xC = 300 xD = 500

yA = 150 yB = 500 yC = 600 yD = 300

WA = 100 WB = 75 WC = 150 WD = 170

32

n

ii

n

iii

W

Wx

x

1

1

n

ii

n

iii

W

Wyy

1

1

ifacility from shipped weight annual:ifacility existing of scoordinate:,

i

ii

wyx

(Q2: Load Distance Technique) Burger Doodle wants to evaluate three different sites it has identified for its new distribution center relative to the four suppliers identified like table of Q1. The coordinates of the three sites under consideration are as follows; choose best site among sites 1, 2, and 3 using the formulae 1 and 2 to minimize transportation cost.

Site 1: x1=360 , y1=180Site 2: x2=420 , y2=450Site 3: x3=250 , y3=400

(Formula 1)

(Formula 2)

d i=√( xi−x )2+( yi− y )2

where( x , y )=coordinate of proposed site( xi , y i )=coordinate of existing site

* You have to provide the calculation process of each question.

33

Friday Assignment 6 for LGAV 3130 (50 points)-Facility Location and Capacity Allocation

An important part of decision making models is the objective. In the case of location models, the objective can be made up of the criteria discussed in the “location strategy.” Those criteria include distance to markets, risk of doing business, etc. The objective function can be classified depending on whether it belongs to a private or public organization. A private sector organization (company) pays most attention to the total profit and hence to the total cost. Since the costs increase with distance traveled, a company is mostly interested in minimizing the total distance traveled. In doing so, the company trades off distance to one customer against the distance to other customers. This pulls the location of the facility towards where the majority of the customers are already located; see table below.

Using the following table decide which market is served by which plant? Which supply sources are used by a plant? The objective is to minimize total cost.

Submit the excel file with the solutions and explanation.

Input - Costs, Capacities, DemandsDemand Region (Production and transportation

Cost per 1,000,000 Units) Fixed Cost ($)

Low Capacit

y

Fixed Cost ($)

High Capacit

ySupply Region N. America S. America Europe

Asia Africa

N. America 81 92 101 130 115 6,000 10 9,000 20S. America 117 77 108 98 100 4,500 10 6,750 20

Europe 102 105 95 119 111 6,500 10 9,750 20Asia 115 125 90 59 74 4,100 10 6,150 20

Africa 142 100 103 105 71 4,000 10 6,000 20Demand 12 8 14 16 7

Decision Variables

 Demand Region (Production and transportation

Cost per 1,000,000 Units) Plants (1=open

)

Plants (1=open

)Supply Region N. America S. America Europe Asia Africa

N. AmericaS. AmericaEuropeAsiaAfrica

Objective FunctionCost =

* Please use the slide (Network_design_SC.ppt) to find solution. No questions allowed after the explanation on facility location and capacity allocation at class.

Due date: 4. 22. 2018

34

35

Friday Assignment 7 for LGAV 3130 (50 points)-Journal Abstract

The abstract is a summary of an article from an academic journal. The topic of the article should be relevant to the air cargo industry.

Purpose: The purpose of the abstract is to summarize an article for the boss so that it is meaningful and pertinent. The boss should be able to understand the main points from the article and how the article relates to air cargo by reading summary alone. You must also include how the findings in the article might be useful for managers.

Journal Article: An academic, peer-reviewed journal must use for this assignment. The article should be at least 3 FULL pages in length. The title pages and bibliographies do not count toward the 3-page count. Furthermore, pictures, tables, and charts do not count toward the 3-page count. Most academic journal articles are longer than three pages, so you should not have a problem finding an article meeting this requirement. Note: 10% point penalty if the article is less than three pages in length.

Academic Journals: Below is a list of journals to begin the search. This list is not all-inclusive, and you may find relevant articles in other academic journals. If you are unsure whether your article meets the requirements for this assignment, please send me an email with a copy of the article. Journal of Air Transportation Management Journal of Transport Geography Journal of Transport Economics and Policy Journal of Airline and Airport Management The Transportation Journal Transportation Research Transportation Science International Journal of Transport Management Journal of Transportation Management Journal of Business Logistics The International Journal of Logistics Management International Journal of Production Economics Journal of International Economics Management Science Decision Sciences

Article Sign-Up: You may not select the same article as another student. Students should reserve their article through the discussion board on Blackboard or notify to instructor. Articles reserved on a first-come basis.

Note: I do not monitor the article sign-up on the discussion boards. I will only refer to the discussion board to determine who first signed up for an article if more than one student reviews the same article. Do not assume that I have approved your article/journal selection just because you posted to the discussion board. Specifically, posting to the discussion board, by itself, will not protect you from a point penalty for selecting and article that is too short, for example.

This homework is semester long project. Please start from the first week of semester.

Guidelines and Grading: Each student is required to prepare a one-page abstract. The abstract is a summary and critique of an article from an academic journal. The topic of the article should be relevant to the air cargo industry. This assignment is a brief outline of your article. Include the following in your outline:

36

1. (5 points) Full bibliographic information, using the following format: Zhang, Anming, Yer Van Hui, and Lawrence Leung (2004), “Air cargo alliances and competition in passenger markets,” Transportation Research Part E, Vol. 40, pp 83-100.

2. (10 points) Purpose Statement: 1-2 full sentences that explain the aim of the journal article.3. (15 points) Findings or results: List the results of the study that are most relevant.4. (15 points) Managerial Implications: List ways in which a manager might use the results of

the study.5. (5 points) Original paper selection. The original paper means that you choose and have to

submit with your abstract.

When choosing an article, keep these guidelines in mind: - Must be relevant to air cargo or air transportation - Must be at least three pages in length, excluding graphics, tables, and charts. (Note: 10%-point

penalty if the article is too short) - Must NOT be an article used in another course?

- Must NOT be the same article as another student (Note: 10%-point penalty). You can sign up for an article through the discussion boards on Blackboard. It is your responsibility to check the discussion board to ensure you have not selected the same article as another student. Article reservations are on a first-come basis.

Due date: 5. 6. 2018

37