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“Ratemaking in Practice” Part Two. Marketing Logistics. Example. Cole, Bardi, Novack (2000) Transportation. Example. Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio. Cole, Bardi, Novack (2000) Transportation. Example.

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example
Example

Cole, Bardi, Novack (2000) Transportation

example1
Example
  • Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.

Cole, Bardi, Novack (2000) Transportation

example2
Example
  • Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches form Cross Village, Michigan, to Clifford, Ohio.
  • Determine rate basis point.

Cole, Bardi, Novack (2000) Transportation

example3
Example
  • Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches form Cross Village, Michigan, to Clifford, Ohio.
  • Determine rate basis point.
    • Cross Village rate basis point = Cheboygan, Michigan.

Cole, Bardi, Novack (2000) Transportation

slide6

Shipping to and from

Cross Village, Michigan

slide7

Shipping to and from

Cross Village, Michigan

--it is in the Cheboygan

Rate base area.

example4
Example
  • Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches form Cross Village, Michigan, to Clifford, Ohio.
  • Determine rate basis point.
    • Cross Village rate basis point = Cheboygan, Michigan.

Cole, Bardi, Novack (2000) Transportation

example5
Example
  • Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches form Cross Village, Michigan, to Clifford, Ohio.
  • Determine rate basis point.
    • Cross Village rate basis point = Cheboygan, Michigan.
    • Clifford rate basis point is Chillicothe.

Cole, Bardi, Novack (2000) Transportation

example6
Example
  • Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches form Cross Village, Michigan, to Clifford, Ohio.
  • Determine rate basis point.
    • Cross Village rate basis point = Cheboygan, Michigan.
    • Clifford rate basis point is Chillicothe.
  • Determine rate basis numbers tariff.

Cole, Bardi, Novack (2000) Transportation

rate basis numbers
Rate Basis Numbers

Cole, Bardi, Novack (2000) Transportation

rate basis numbers1
Rate Basis Numbers

Cole, Bardi, Novack (2000) Transportation

rate basis numbers2
Rate Basis Numbers

Cole, Bardi, Novack (2000) Transportation

example7
Example
  • Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.
  • Determine rate basis point.
    • Cross Village rate basis point = Cheboygan, Michigan.
    • Clifford rate basis point is Chillicothe.
  • Determine rate basis numbers tariff.

Cole, Bardi, Novack (2000) Transportation

example8
Example
  • Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.
  • Determine rate basis point.
    • Cross Village rate basis point = Cheboygan, Michigan.
    • Clifford rate basis point is Chillicothe.
  • Determine rate basis numbers tariff.
  • Determine class rating.

Cole, Bardi, Novack (2000) Transportation

slide16
Plastic material.
    • Sub 1 Exceeding 9 feet, 6 inches in two dimensions or 20 feet in one dimension.
      • LTL – 85
      • TL – 45
      • MW - 30
    • Sub 2 Not exceeding 9 feet, 6 inches in more than one dimension nor 20 feet in one dimension.
      • LTL – 60
      • TL – 35
      • MW - 30

Page 331 Cole, Bardi, Novack (2000) Transportation

slide17
Plastic material.
    • Sub 1 Exceeding 9 feet, 6 inches in two dimensions or 20 feet in one dimension.
      • LTL – 85
      • TL – 45
      • MW - 30
    • Sub 2 Not exceeding 9 feet, 6 inches in more than one dimension nor 20 feet in one dimension.
      • LTL – 60
      • TL – 35
      • MW - 30

Page 331 Cole, Bardi, Novack (2000) Transportation

slide18
Plastic material.
    • Sub 1 Exceeding 9 feet, 6 inches in two dimensions or 20 feet in one dimension.
      • LTL – 85
      • TL – 45
      • MW - 30
    • Sub 2 Not exceeding 9 feet, 6 inches in more than one dimension nor 20 feet in one dimension.
      • LTL – 60
      • TL – 35
      • MW - 30

Page 331 Cole, Bardi, Novack (2000) Transportation

rate basis numbers3
Rate Basis Numbers

Cole, Bardi, Novack (2000) Transportation

rate basis numbers4
Rate Basis Numbers

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 550
Rate Basis Number 501-550

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 5501
Rate Basis Number 501-550

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 5502
Rate Basis Number 501-550

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 5503
Rate Basis Number 501-550

More than 500 pounds

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 5504
Rate Basis Number 501-550

More than 1,000 pounds

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 5505
Rate Basis Number 501-550

More than 2,000 pounds

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 5506
Rate Basis Number 501-550

More than 5,000 pounds

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 5507
Rate Basis Number 501-550

More than 10,000 pounds

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 5508
Rate Basis Number 501-550

More than 20,000 pounds

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 5509
Rate Basis Number 501-550

More than 30,000 pounds

Cole, Bardi, Novack (2000) Transportation

example9
Example
  • Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.

Cole, Bardi, Novack (2000) Transportation

example10
Example
  • Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 55010
Rate Basis Number 501-550

Minimum 10,000 pounds

Cole, Bardi, Novack (2000) Transportation

slide34
Plastic material.
    • Sub 1 Exceeding 9 feet, 6 inches in two dimensions or 20 feet in one dimension.
      • LTL – 85
      • TL – 45
      • MW - 30
    • Sub 2 Not exceeding 9 feet, 6 inches in more than one dimension nor 20 feet in one dimension.
      • LTL – 60
      • TL – 35
      • MW - 30

Page 331 Cole, Bardi, Novack (2000) Transportation

slide35
Plastic material.
    • Sub 1 Exceeding 9 feet, 6 inches in two dimensions or 20 feet in one dimension.
      • LTL – 85
      • TL – 45
      • MW - 30
    • Sub 2 Not exceeding 9 feet, 6 inches in more than one dimension nor 20 feet in one dimension.
      • LTL – 60
      • TL – 35
      • MW - 30

Page 331 Cole, Bardi, Novack (2000) Transportation

rate basis number 501 55011
Rate Basis Number 501-550

Minimum 10,000 pounds

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 55012
Rate Basis Number 501-550

Minimum 10,000 pounds

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 55013
Rate Basis Number 501-550

846 cents/cwt

Cole, Bardi, Novack (2000) Transportation

example11
Example
  • Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.

Cole, Bardi, Novack (2000) Transportation

example12
Example
  • Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.

Cole, Bardi, Novack (2000) Transportation

example13
Example
  • Move 11,0 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.

Cole, Bardi, Novack (2000) Transportation

example14
Example
  • Move 11,0 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.

110 cwt

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 55014
Rate Basis Number 501-550

846 cents/cwt

$8.46 x 110cwt

Cole, Bardi, Novack (2000) Transportation

rate basis number 501 55015
Rate Basis Number 501-550

846 cents/cwt

$8.46 x 110cwt

= $930.60

Cole, Bardi, Novack (2000) Transportation