Hardee Transportation

Variables

Equipment Cost Data

Equipment Purchase Price

1. Line-haul tractors $ 130,000.00

2. Line-haul Trailers $ 60,000.00

Depreciation

1. Tractors - straight line Years8

2. Trailers- straight line Years10

Interest

Tractors

Percent APR 6% Years to payback5

Trailers Percent APR 6% Years to payback 8

Fuel

1. per gallon for diesel 4.25

2. Line-haul tractors = XX miles per gallon 6

Fuel per mile 0.71

Labour

Line- haul drivers XX per mile $ 0.45

Pick up and deliver PUD drivers =XX (fully loaded) per hour $ 30.00

Dock Workers = XX(fully Loaded) per hour $ 35.00

Miscellaneous

Insurace cost per mile $ 0.075

Maintenance cost per mile $ 0.200

Billing Cost per freight bill $ 2.10

Admin overhead cost percentage of total move 10%

Dock Facility Cost per hour $ 18.00

Line-hual vehicle averages between origin and destination (MPH) 45

tractors and trailers are available for use 24 hours per day, 365 days

per year

Days in a year 365

hours in a day 24

hours in a year 8760

Route and Time of Move The shipment (40,000 pounds) originates at a customer location in Pittsburgh, located 20 miles from Hardees dispatch center. A PUD driver is dispatched from the Hardee location at 8:30 a.m. on January 12, 2010, and arrives at destination at 9:00 a.m. 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 customers 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 customers 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. CASE QUESTIONS 1. What are the pick-up, sort, line-haul, and delivery costs to Hardee for this move? 2. What is the total cost of this move? Cost per cwt? Cost per revenue mile?