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“Ratemaking in Practice” Part Two

“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

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  1. “Ratemaking in Practice” Part Two Marketing Logistics

  2. Example Cole, Bardi, Novack (2000) Transportation

  3. 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

  4. 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

  5. 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

  6. Shipping to and from Cross Village, Michigan

  7. Shipping to and from Cross Village, Michigan --it is in the Cheboygan Rate base area.

  8. 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

  9. 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

  10. 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

  11. Rate Basis Numbers Cole, Bardi, Novack (2000) Transportation

  12. Rate Basis Numbers Cole, Bardi, Novack (2000) Transportation

  13. Rate Basis Numbers Cole, Bardi, Novack (2000) Transportation

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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

  19. Rate Basis Numbers Cole, Bardi, Novack (2000) Transportation

  20. Rate Basis Numbers Cole, Bardi, Novack (2000) Transportation

  21. Rate Basis Number 501-550 Cole, Bardi, Novack (2000) Transportation

  22. Rate Basis Number 501-550 Cole, Bardi, Novack (2000) Transportation

  23. Rate Basis Number 501-550 Cole, Bardi, Novack (2000) Transportation

  24. Rate Basis Number 501-550 More than 500 pounds Cole, Bardi, Novack (2000) Transportation

  25. Rate Basis Number 501-550 More than 1,000 pounds Cole, Bardi, Novack (2000) Transportation

  26. Rate Basis Number 501-550 More than 2,000 pounds Cole, Bardi, Novack (2000) Transportation

  27. Rate Basis Number 501-550 More than 5,000 pounds Cole, Bardi, Novack (2000) Transportation

  28. Rate Basis Number 501-550 More than 10,000 pounds Cole, Bardi, Novack (2000) Transportation

  29. Rate Basis Number 501-550 More than 20,000 pounds Cole, Bardi, Novack (2000) Transportation

  30. Rate Basis Number 501-550 More than 30,000 pounds Cole, Bardi, Novack (2000) Transportation

  31. 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

  32. 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

  33. Rate Basis Number 501-550 Minimum 10,000 pounds Cole, Bardi, Novack (2000) Transportation

  34. 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

  35. 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

  36. Rate Basis Number 501-550 Minimum 10,000 pounds Cole, Bardi, Novack (2000) Transportation

  37. Rate Basis Number 501-550 Minimum 10,000 pounds Cole, Bardi, Novack (2000) Transportation

  38. Rate Basis Number 501-550 846 cents/cwt Cole, Bardi, Novack (2000) Transportation

  39. 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

  40. 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

  41. 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

  42. 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

  43. Rate Basis Number 501-550 846 cents/cwt $8.46 x 110cwt Cole, Bardi, Novack (2000) Transportation

  44. Rate Basis Number 501-550 846 cents/cwt $8.46 x 110cwt = $930.60 Cole, Bardi, Novack (2000) Transportation

  45. End of Program.

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