Final answer:
The correct option is 4). UPS and FedEx function as Transporters in the supply chain, facilitating the movement of goods and benefiting from lower operating costs to increase supply and expand service areas.
Step-by-step explanation:
In the context of the supply chain, UPS and FedEx play the role of a Transporter. They are responsible for moving goods from one location to another, particularly from production facilities or distribution centers to retail outlets or directly to the end consumers. Locations with easy access to uncrowded highways or various transport options such as rail or waterways can significantly improve efficiency and reduce transportation costs. When operating costs, such as the price of gasoline, decrease, it allows these companies to offer their shipping services at more competitive prices, or to expand their service areas, thus increasing their supply of delivery services.
Lower operating costs lead to higher profits, allowing transportation companies like UPS and FedEx to potentially broaden their reach and capacity in terms of the volume of goods they can move and the geographic areas they can service. These benefits come about due to the impact that factors like gasoline prices can have on the overall costs of delivering packages and messages across various distances.