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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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“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 • 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
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
Shipping to and from Cross Village, Michigan
Shipping to and from Cross Village, Michigan --it is in the Cheboygan Rate base area.
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
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
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 Cole, Bardi, Novack (2000) Transportation
Rate Basis Numbers Cole, Bardi, Novack (2000) Transportation
Rate Basis Numbers 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. • 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
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
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
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
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 Numbers Cole, Bardi, Novack (2000) Transportation
Rate Basis Numbers Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 More than 500 pounds Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 More than 1,000 pounds Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 More than 2,000 pounds Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 More than 5,000 pounds Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 More than 10,000 pounds Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 More than 20,000 pounds Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 More than 30,000 pounds 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 • 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 501-550 Minimum 10,000 pounds Cole, Bardi, Novack (2000) Transportation
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
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 501-550 Minimum 10,000 pounds Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 Minimum 10,000 pounds Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 846 cents/cwt 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 • 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 • Move 11,0 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio. Cole, Bardi, Novack (2000) Transportation
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 501-550 846 cents/cwt $8.46 x 110cwt Cole, Bardi, Novack (2000) Transportation
Rate Basis Number 501-550 846 cents/cwt $8.46 x 110cwt = $930.60 Cole, Bardi, Novack (2000) Transportation