Assignment 2- Hardee Transportation CASE PDF

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HARDEE TRANSPORTATION CASE STUDY

ASSIGNMENT -2 HARDEE TRANSPORTATION CASE STUDY MGMT-6080 Transportation & Logistics Prof. Robert Adzija

Submitted by: Greeshma Madhavan Student ID- 0946595 Fanshawe College 1

HARDEE TRANSPORTATION CASE STUDY

Q1. What are the pickup, sort, line-haul, and delivery costs to Hardee for this move? Ans: 1. Pickup Costs Depreciation: Tractor- 4 hr.at $3.42/hr.=$13.68 Trailer- 4 hr. at $0.71/hr.=$2.84 Interest: Tractor- 4 hr. at $3.98/hr.= $15.92 Trailer- 4 hr. at $0.90/hr.= $3.60 Fuel: 4 miles at $0.58/miles.=$23.20 Labor: 4 hr. at $30/hr. = $120.00 Maintenance: 40 miles at $0.20/miles = $8.00 Insurance: 40 miles at $0.075/miles = $3.00 Billing: $2.10 Total Pickup Cost = $192.34

2. Sorting Costs Labor: 16 hr at $35.00 = $560.00 Dock fees= 8 hr at $15.00= $120.00 Total Sorting Cost= $680.00

3. Line-haul Costs Depreciation: 2

HARDEE TRANSPORTATION CASE STUDY

Tractor- 45.8 hr. at $3.42/hr. =$156.6 Trailer- 45.8 hr. at $0.71/hr. =$32.52

Interest: Tractor- 45.8 hr. at $3.98/hr. =$182.28 Trailer- 45.8 hr. at $0.90/hr. =$41.22 Fuel: 1249 miles at $0.58/miles = $724.42 Labor: 1249 miles at $0.45/miles = $562.05 Maintenance: 1249 miles at $0.20/miles = $249.80 Insurance: 1249 miles at $0.075/miles = $93.68 Total Line-haul cost= $2042.60

4. Delivery Costs Depreciation: Tractor- 2.5 hr. at $3.42/hr. =$8.55 Trailer- 2.5 hr. at $0.71/hr. =$1.78 Interest: Tractor- 2.5 hr. at $3.98/hr. =$9.95 Trailer- 2.5hr. at $0.90/hr. =$2.25 Fuel: 15 miles at $0.58/miles = $8.70 Labor: 2.5 hr. at $30.00/hr. = $75.00 Maintenance: 15 miles at $0.20/miles = $3.00 3

HARDEE TRANSPORTATION CASE STUDY

Insurance: 15 miles at $0.075/miles = $1.13 Total Delivery cost = $ 110.35

Q2. What is the total cost of this move? Cost per cwt? Cost per revenue mile? -Total Cost: 1. Pickup, sort, line-haul, delivery = $3025.29 2. Administrative/ Overhead (8%) = $242.02 Total Truckload cost = $3267.32 -Cost per cwt? Cost per mile 1. Per cwt. =3267.32/ 450 = $7.26 2. Per revenue mile = 3267.32/1264 miles = $2.58 [ CITATION Rob142 \l 1033 ]

Reference Novack, R. A., Gibson, B. J., Suzuki, Y., & Coyle, J. J. (2014). Hardee Transportation. In R. A. Novack, B. J. Gibson, Y. Suzuki, & J. J. Coyle, Transportation- A global supply chain perspective (pp. 125-126). United States of America: Cengage Learning.

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