How would you account for the empty backhaul costs associated with this move?

Case 4.2 -Hardee Transportation Worksheet/Answer Sheet-LOG-125

 

 

Student NameClick or tap here to enter text. DateClick or tap to enter a date.

The analysis for this case can be structured in the same manner as the truckload costing example given in the Appendix to this chapter. The analysis is as follows.

1. Pickup: 40 miles and 4 hours

2. Sorting: 8 hours (using 2 dock workers)

3. Linehaul: 1249 miles and 43 hours, 48 minutes

4. Delivery: 15 miles and 2 hours, 30 minutes

 

1. What are the pickup, sort, line-haul, and delivery costs to Hardee for this move?

I. Pickup

1. Depreciation: Tractor Click or tap here to enter text. Click or tap here to enter text.
Trailer Click or tap here to enter text. Click or tap here to enter text.
2. Interest: Tractor Click or tap here to enter text. Click or tap here to enter text.
Trailer Click or tap here to enter text. Click or tap here to enter text.
3 Fuel Click or tap here to enter text. Click or tap here to enter text.
4. Labor Click or tap here to enter text. Click or tap here to enter text.
5. Maintenance Click or tap here to enter text. Click or tap here to enter text.
6. Insurance Click or tap here to enter text. Click or tap here to enter text.
7. Billing Click or tap here to enter text. Click or tap here to enter text.

Total Pickup Cost (Max 10 points) Click or tap here to enter text.

II. Sorting

1. Labor Click or tap here to enter text. Click or tap here to enter text.

Total Sort Cost (Max 10 points) Click or tap here to enter text.

III. Line-haul

1. Depreciation: Tractor Click or tap here to enter text. Click or tap here to enter text.
Trailer Click or tap here to enter text. Click or tap here to enter text.
2. Interest: Tractor Click or tap here to enter text. Click or tap here to enter text.
Trailer Click or tap here to enter text. Click or tap here to enter text.
3 Fuel Click or tap here to enter text. Click or tap here to enter text.
4. Labor Click or tap here to enter text. Click or tap here to enter text.
5. Maintenance Click or tap here to enter text. Click or tap here to enter text.
6. Insurance Click or tap here to enter text. Click or tap here to enter text.

Total Line-haul Cost (Max 10 points) Click or tap here to enter text.

 

 

 

 

 

 

 

 

 

Case 4.2 -Hardee Transportation Worksheet/Answer Sheet-LOG-125

 

 

IV. Delivery Cost

1. Depreciation: Tractor Click or tap here to enter text. Click or tap here to enter text.
Trailer Click or tap here to enter text. Click or tap here to enter text.
2. Interest: Tractor Click or tap here to enter text. Click or tap here to enter text.
Trailer Click or tap here to enter text. Click or tap here to enter text.
3 Fuel Click or tap here to enter text. Click or tap here to enter text.
4. Labor Click or tap here to enter text. Click or tap here to enter text.
5. Maintenance Click or tap here to enter text. Click or tap here to enter text.
6. Insurance Click or tap here to enter text. Click or tap here to enter text.

Total Delivery Cost (Max 10 points) Click or tap here to enter text.

2. What is the total cost of this move?

 

V. Total Cost

1. Pickup, Sort, linehaul, delivery Click or tap here to enter text.
2. Administrative/Overhead (10%) Click or tap here to enter text.

Total Cost of Move (Max 10 points) Click or tap here to enter text.

 

2b. Cost per cwt? Cost per revenue mile?

 

VI. Revenue Needs

1. Per cwt.

Click or tap here to enter text. Click or tap here to enter text.

Cost per CWT (Max 5 points) Click or tap here to enter text.

 

2. Cost per Revenue Mile Click or tap here to enter text. Click or tap here to enter text.

 

Cost per Revenue Mile (Max 5 points) Click or tap here to enter text.

 

 

3. If Hardee would put two drivers in the tractor for the line-haul move, there would be no rest required for drivers during the line-haul move. What would happen to the total costs? (Max 20 points)

Click or tap here to enter text.

 

 

4. Assume that Hardee has no loaded backhaul to return the vehicle and driver to Pittsburgh. How would you account for the empty backhaul costs associated with this move? Would you include those in the headhaul move? How would this impact your pricing strategy? (Max 20 points)

 

Click or tap here to enter text.

2

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