1 / 6

Review for Exam 1

Review for Exam 1. Case 6-1 pages 205-210 Send 17,000 lbs of arch supports from St. Jo to Green Bay. By rail: UFC Item 13390 Boot or shoe arch supports LCL rating 100 CL rating 70 (over 20,000 lbs) Freight Tariff Rate Bases:St. Jo to Green Bay 579 Class Rates at LCL 349 cents per cwt.

dugan
Download Presentation

Review for Exam 1

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Review for Exam 1 • Case 6-1 pages 205-210 • Send 17,000 lbs of arch supports from St. Jo to Green Bay. • By rail: • UFC Item 13390 Boot or shoe arch supports • LCL rating 100 • CL rating 70 (over 20,000 lbs) • Freight Tariff Rate Bases:St. Jo to Green Bay • 579 Class Rates • at LCL 349 cents per cwt

  2. Case 6-1 Cont’d • at LCL 349 cents per cwt • 349 cents/cwt = $3.49/cwt • 17,000 lbs = 170 cwt • $3.49*170 = $593.30 • Should we ship “wind”? • at CL 244 cents per cwt • 244 cents/cwt = $2.44/cwt • 20,000 lbs = 200 cwt • $2.44*200 = $488

  3. Case 6-1 Cont’d • Interest Rate 15%/year • $21,000 value • LCL takes 10 days • CL takes 6 days • 4 days interest on $21,000 • 15%/365*21000 = $8.63 daily interest • 4 days interest is $34.52

  4. Use Truck? • $0.85/mile • 588 miles • 2 days • Cost to Green Bay = $499.80 • Saves additional 4 days interest or $34.52 • So the relative cost is $465.28 which is less than CL • But…?

  5. From St. Louis • Freight Tariff Rate Bases:St. Louis to Green Bay • 458 Class Rates • at LCL 307 cents per cwt • 307 cents/cwt = $3.07/cwt • 17,000 lbs = 170 cwt • $3.07*170 = $521.90

  6. Case 6-1 Cont’d • Should we ship “wind”? • at CL 215 cents per cwt • 215 cents/cwt = $2.15/cwt • 20,000 lbs = 200 cwt • $2.15*200 = $430

More Related