LOGS 3180 - Bus Log & SCM - ASSIGNMENT 5 TRANSPORTATION COSTING/PRICING ASSIGNMENT Part 2 Objective: To show the relationship between weight and transportation cost. Information: The following table contains UPS truck rates for residential delivers in Zone 2 (local.) Cost per Pound Weight per Shipment (lbs.) 1 2 3 4 5 6 7 8 9 10 15 20 25 UPS Rate (total cost) $2.18 $2.19 $2.27 $2.37 $2.46 $2.56 $2.63 $2.72 S2.82 $2.90 $3.25 $3.71 4.25 Fill in the table and answer the following: A customer orders ten lib units from Lands' End catalog. Should Lands' End ship these: Individually Small Groups Large Group (10 pkgs of 1 unit cach) (2 pkgs of 5 units cach) (1 pkg of 10 units) $ Total UPS Cost $ Total UPS Cost $ Total UPS Cost Principle: As weight increases, total transportation cost rate and as weight increases, cost per pound at a(n) When larger shipments are involved, transportation prices are set for a range of pounds. For example: 0-1,999 lbs = $8/16 2,000-3,999 lbs = $5/16 4,000-6,999 = $3/16 Fill in the following table using the transportation prices listed above: LBS 0 1000 1500 1999 2000 3000 3999 Total 4000 5000 6999 Cost Develop a line graph using the table above. SS 21000 20000 19000 18000 17000 16000 15000 14000 13000 12000 11000 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 Weight (LBS) a If you have shipments that weight between 2,000-3,999 lbs, at what shipment size (in pounds) is the total cost equal to the cost of shipping 4,000 lbs? Locate this point on the graph and place a star on the graph at this point. This point is called a WEIGHT BREAK. When shipping products, a traffic manager is allowed to use the following weight break rule: From 2,000 lbs to (weight break), pay actual total cost. From (weight break) to 3,999 lbs., ship as 4,000 lbs and pay the total cost for 4,000 lbs (should be lower.) Beyond 4,000 lbs, pay actual cost until next weight break is reached. In essence, between 2,000-3,999 lbs, the traffic manager is allowed to cut across the $12,000 line on the graph from the weight break point to the 4,000 lbs point Are there any other weight breaks on the graph? Where? lbs. Place a star at this point, if it exists. LOGS 3180 - Bus Log & SCM - ASSIGNMENT 5 TRANSPORTATION COSTING/PRICING ASSIGNMENT Part 2 Objective: To show the relationship between weight and transportation cost. Information: The following table contains UPS truck rates for residential delivers in Zone 2 (local.) Cost per Pound Weight per Shipment (lbs.) 1 2 3 4 5 6 7 8 9 10 15 20 25 UPS Rate (total cost) $2.18 $2.19 $2.27 $2.37 $2.46 $2.56 $2.63 $2.72 S2.82 $2.90 $3.25 $3.71 4.25 Fill in the table and answer the following: A customer orders ten lib units from Lands' End catalog. Should Lands' End ship these: Individually Small Groups Large Group (10 pkgs of 1 unit cach) (2 pkgs of 5 units cach) (1 pkg of 10 units) $ Total UPS Cost $ Total UPS Cost $ Total UPS Cost Principle: As weight increases, total transportation cost rate and as weight increases, cost per pound at a(n) When larger shipments are involved, transportation prices are set for a range of pounds. For example: 0-1,999 lbs = $8/16 2,000-3,999 lbs = $5/16 4,000-6,999 = $3/16 Fill in the following table using the transportation prices listed above: LBS 0 1000 1500 1999 2000 3000 3999 Total 4000 5000 6999 Cost Develop a line graph using the table above. SS 21000 20000 19000 18000 17000 16000 15000 14000 13000 12000 11000 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000 6500 Weight (LBS) a If you have shipments that weight between 2,000-3,999 lbs, at what shipment size (in pounds) is the total cost equal to the cost of shipping 4,000 lbs? Locate this point on the graph and place a star on the graph at this point. This point is called a WEIGHT BREAK. When shipping products, a traffic manager is allowed to use the following weight break rule: From 2,000 lbs to (weight break), pay actual total cost. From (weight break) to 3,999 lbs., ship as 4,000 lbs and pay the total cost for 4,000 lbs (should be lower.) Beyond 4,000 lbs, pay actual cost until next weight break is reached. In essence, between 2,000-3,999 lbs, the traffic manager is allowed to cut across the $12,000 line on the graph from the weight break point to the 4,000 lbs point Are there any other weight breaks on the graph? Where? lbs. Place a star at this point, if it exists