Question 3: If Hardee would put two drivers in the tractor for the linehaul move, there would be no rest required for drivers during the linehaul move. What would happen to total costs? In this case, the linehaul portion of the costs need to be recalculated and added to the original pick-up, sort, and delivery costs, remembering to recalculate the administrative/overhead costs on the new total. In the new linehaul calculation the total hours will be reduced from .........hours to .... ....hours. The new hour total removes ........rest hours from the total move. The miles remain the same as do all of the item costs. The only total costs that change are the depreciation and interest for the tractor and trailer. The new amounts are: Depreciation: Tractor Trailer ....hr.@ S.../hr. ....hr. @ S.../hr. Interest: Tractor ....hr. @ S.../hr. Trailer .... hr@ S...Jhr. Adding these to the fuel, labor, maintenance, and insurance costs results in a new total linehaul cost of S........ New Total truckload cost: Pick-up (S........ ), Sort (S....... ), Linehaul (S.......), Delivery (S........) = Administrative Overhead (10%) TOTAL Revenue Needs 1. Cost per cwt. (S............) = $.... 2. Cost per revemie mile (S............) Obviously, adding a second driver ........ total transit time, thus ........ total operating costs. Miscellaneous 1. Insurance cost = $0.067 per mile 2. Maintenance cost = $0.152 per mile 3. Billing cost = $1.95 per freight bill 4. Tractors and trailers are available for use 24 hours per day, 365 days per year 5. Administrative/overhead cost = 10 percent of total cost of move 6. Dock facility cost =$15 per hour 7. Line-haul vehicle averages 45 mph between origin and destination Equipment Cost Data Equipment Purchase Price 1. Line-haul tractors = $120,000 2. Line-haul trailers = $40,000 Depreciation 1. Tractors = 5-year straight line 2. Trailers=8-year straight line Interest 1. Tractors = 6 percent APR for 5 years 2. Trailers = 6 percent APR for 8 years Fuel 1. $3.83 per gallon for diesel 2. Line-haul tractors = 6.0 miles per gallon Labor 1. Line-haul drivers = $0.45 per mile 2. Pickup and delivery (PUD) drivers = $30 (fully loaded) per hour 3. Dock workers -$25 (fully loaded) per hour Route and Time of Move The shipment (45,000 pounds) originates at a customer location in Pittsburgh, located 20 miles from Hardee's dispatch center. A PUD driver is dispatched from the Hardee loca- tion at 8:30 a.m. on January 12, 2015, and arrives at destination at 9:00 am the same day. The shipment is loaded from 9:00 a.m. to 12:00 p.m. The PUD driver departs the customer location at 12:00 p.m. and arrives back at the Hardee dispatch center at 12:30 p.m. The sort process starts at 12:30 p.m. and ends at 8:30 p.m. on January 12. It requires unloading the trailer, sorting, and repalletizing the load. This operation requires two dock workers, each working the same trailer for 8 hours in the dispatch center. The line-haul portion begins with the vehicle being dispatched from the Pittsburgh location at 8:30 p.m. on January 12 and traveling to Charlotte, North Carolina, a distance of 481 miles, and arriving at Charlotte at 7:12 a.m. on January 13. The driver rests from 7:12 a.m. until 3:12 p.m. The trip continues with the vehicle departing Charlotte at 3:12 p.m. on January 13 and traveling to Jacksonville, Florida, a distance of 399 miles, arriving at Jacksonville at 12:06 a.m. on January 14. The driver rests from 12:06 a.m. until 10:06 a.m. The line-haul portion concludes with the vehicle departing Jacksonville at 10:06 a.m. and traveling to the customer's location in Miami, a distance of 369 miles, and arriving at the distribution center at 6:18 p.m. on January 14. The line-haul driver stays with the vehicle while it is being unloaded (2 hours unload time). The driver then deadheads at 8:18 p.m. from the customer's distribution center and arrives at a Hardee dispatch center located in Miami at 8:48 p.m., a distance of 15 miles from the distribution center. Question 3: If Hardee would put two drivers in the tractor for the linehaul move, there would be no rest required for drivers during the linehaul move. What would happen to total costs? In this case, the linehaul portion of the costs need to be recalculated and added to the original pick-up, sort, and delivery costs, remembering to recalculate the administrative/overhead costs on the new total. In the new linehaul calculation the total hours will be reduced from .........hours to .... ....hours. The new hour total removes ........rest hours from the total move. The miles remain the same as do all of the item costs. The only total costs that change are the depreciation and interest for the tractor and trailer. The new amounts are: Depreciation: Tractor Trailer ....hr.@ S.../hr. ....hr. @ S.../hr. Interest: Tractor ....hr. @ S.../hr. Trailer .... hr@ S...Jhr. Adding these to the fuel, labor, maintenance, and insurance costs results in a new total linehaul cost of S........ New Total truckload cost: Pick-up (S........ ), Sort (S....... ), Linehaul (S.......), Delivery (S........) = Administrative Overhead (10%) TOTAL Revenue Needs 1. Cost per cwt. (S............) = $.... 2. Cost per revemie mile (S............) Obviously, adding a second driver ........ total transit time, thus ........ total operating costs. Miscellaneous 1. Insurance cost = $0.067 per mile 2. Maintenance cost = $0.152 per mile 3. Billing cost = $1.95 per freight bill 4. Tractors and trailers are available for use 24 hours per day, 365 days per year 5. Administrative/overhead cost = 10 percent of total cost of move 6. Dock facility cost =$15 per hour 7. Line-haul vehicle averages 45 mph between origin and destination Equipment Cost Data Equipment Purchase Price 1. Line-haul tractors = $120,000 2. Line-haul trailers = $40,000 Depreciation 1. Tractors = 5-year straight line 2. Trailers=8-year straight line Interest 1. Tractors = 6 percent APR for 5 years 2. Trailers = 6 percent APR for 8 years Fuel 1. $3.83 per gallon for diesel 2. Line-haul tractors = 6.0 miles per gallon Labor 1. Line-haul drivers = $0.45 per mile 2. Pickup and delivery (PUD) drivers = $30 (fully loaded) per hour 3. Dock workers -$25 (fully loaded) per hour Route and Time of Move The shipment (45,000 pounds) originates at a customer location in Pittsburgh, located 20 miles from Hardee's dispatch center. A PUD driver is dispatched from the Hardee loca- tion at 8:30 a.m. on January 12, 2015, and arrives at destination at 9:00 am the same day. The shipment is loaded from 9:00 a.m. to 12:00 p.m. The PUD driver departs the customer location at 12:00 p.m. and arrives back at the Hardee dispatch center at 12:30 p.m. The sort process starts at 12:30 p.m. and ends at 8:30 p.m. on January 12. It requires unloading the trailer, sorting, and repalletizing the load. This operation requires two dock workers, each working the same trailer for 8 hours in the dispatch center. The line-haul portion begins with the vehicle being dispatched from the Pittsburgh location at 8:30 p.m. on January 12 and traveling to Charlotte, North Carolina, a distance of 481 miles, and arriving at Charlotte at 7:12 a.m. on January 13. The driver rests from 7:12 a.m. until 3:12 p.m. The trip continues with the vehicle departing Charlotte at 3:12 p.m. on January 13 and traveling to Jacksonville, Florida, a distance of 399 miles, arriving at Jacksonville at 12:06 a.m. on January 14. The driver rests from 12:06 a.m. until 10:06 a.m. The line-haul portion concludes with the vehicle departing Jacksonville at 10:06 a.m. and traveling to the customer's location in Miami, a distance of 369 miles, and arriving at the distribution center at 6:18 p.m. on January 14. The line-haul driver stays with the vehicle while it is being unloaded (2 hours unload time). The driver then deadheads at 8:18 p.m. from the customer's distribution center and arrives at a Hardee dispatch center located in Miami at 8:48 p.m., a distance of 15 miles from the distribution center