Question #6 - I need some help graphing this out.

bis folusel 244 Part III . Elements of Logistics Systems ed that because the e LTL classification of 200 ded to ask the motor car- CASE 13.1 CHIPPY POTATO CHIP COMPANY Located in Reno, Nevada, since 1947, the Chippy Potato Chip Company manufactured potato chips and distrib- uted them within a 100-mile radius of Reno. It used its ovement are the classification CASE Chippy management believed that he new chips were less bulky, the LTL clas was too high. Management decided to ask the bureau for a new, lower classification own trucks for delivery in the Reno, Carson City, and Lakerier classification burea (Motor carrier rates for a movement are the Tahoe areas and common carrier trucking for all other out- multiplied by a distance factor. If the classification would be lowered proportionally for all going shipments. All of its motor carrier shipments were lowered, the rate would be lowered proportion on an LTL basis. The applicable motor carrier freight rating, shipments.) or classification, for LTL potato chips was 200. This clas- t sification was high, although potato chips are often given as QUESTIONS textbook examples of bulky freight that will cause a truck to cube out. Even after much of the motor carrier indus- 1. If you worked for Chippy, what new classification would try was deregulated, Chippy had difficulty finding contract you ask for? Give your reasons. truckers interested in negotiating specific contract rates. 2. Classifications are based on both cost and value of service. This was because potato chips-as a result of their bulk-- From the carrier's standpoint, how has cost of service were not a desirable cargo from the truckers' point of view. changed? The potato chips were packed in 8-ounce bags. 3. Given the existing LTL classification of 200, how has value Twenty-four 8-ounce bags were packed in cartons that of service to the customer changed? were 12 inches by 12 inches by 36 inches. The packed car- 4. The new tubular containers are much sturdier. If you ton weighed 14 pounds. The 8-ounce bags of chips whole worked for Chippy, how--if at allwould you argue that saled FOB plant for 40 cents each and retailed for cents. this factor influences classification? Recently, the Chippy firm acquired rights to pro- 5. You work for the motor carrier classification bureau and duce a new type of chip, made from powdered potatoes, notice that the relationship between the weight of potato yielding chips of identical shape that could be packed in tubular containers. A 5-ounce paper tube of chips would chips and the weight of packaging has changed. How, if at all, should this influence changes in the products wholesale (FOB plant) for 40 cents and retail for 59 cents. The new chips were much less bulky: Twenty-four 5-ounce classification? 6. One of Chippy's own trucks used for local deliveries, has two axles and an enclosed body measuring (inside) 7 te by 8 feet by 20 feet and is limited by law to carrying a of no more than 8,000 pounds. Because the truck of carton weight.) supposed to be overloaded, what combinations, expres in terms of cartons of both new and old-style chips legally carry? (Hint: Use a piece of graph paper.) " CHILS. containers could be packed in a carton measuring one cu- bic foot. The filled carton weighed 10 pounds. (The differ- ence between the weight of chips and that of cartons is due to packaging materials. The carrier is paid on the basis tlons, expressed -style chips can it