Your companhisaputely 100,000 gallons of diesel fuel each month the Perrysburg market. Oh and have each sent you tract in hopes of Date 10/20/17 10/21/17 10/22/17 10/23/17 1024/12 2.JOS 2681 2.659 2.576 2.590 2475 2.557 2006 2.439 2.550 2.972 2.946 2.922 2831 2.846 CHAINC Retail price incl. state and 2.936 2.544 2.794 2.982 2.802 Date 10/20/17 10/21/12 10/22/17 10/23/17 107417 Retail price the state and 2.690 2.500 2.543 2714 2550 Truckstop con (no state 2616 2.362 2.466 2516 235) Scanned with CamScanner your company be The contract proposals are listed below RETAIL DISCOUNT PUMP PEE 0.02 0.02 BIDS TRANSACTIONEE SUPPLIER METHOD 0.25 A Cost plus 0.00 . Retail minus 0.03 050 C Best of As discussed in this chapter, the price of the core plus method is given by the track stop cost plus pump fee, while that of the retail minus method is given by the retail price (without state tax) mines retail discount. There is also a transaction fee associated with purchasing fuel from each of the vendors. This is a one-time cost per transaction, meaning that your trucks must pay this cos every time they buy fuel. regardless of the amount fuel purchased. The average fuel purchase quantity of your drivers (per transaction or per refueling stop) is roughly 100 gallons. CASE QUESTIONS 1. Given the proposed contract, what is your company's average cost of fuel per gallon with each of the fuel vendors? 2. Which truckstop chain should you choose if your goal is to minimize fuel cost? 3. Chain really wants your business and says they will do anything to obtain it. What should their retail discount be in order to obtain your business! Scanned with CamScanner CASE 5-2 Cyclone Transportation Cyclone Transportation is a medium-sized truckload carrier based in Ohio, United States. You are a procurement manager of this company, whose main responsibility is the procure- ment of diesel fuel for the company's fleet of Class 8 trucks. You have been assigned to negotiate the fuel contract for the Perrysburg. Ohio market. Your assistant has collected the following per gallon information concerning the major truck stop chains (A, B, and C) around that area. You will use this information to analyze each fuel vendor's proposed contract. DATE 10/20/17 10/21/17 10/22/17 10/23/17 10/24/17 TRUCK STOP COST (NO STATE TAX) 2.514 2.421 2.460 2.738 2.570 Date 10/20/17 10/21/17 10/22/17 10/23/17 10/24/17 CHAIN A RETAIL PRICE RETAIL PRICE (INCL. STATE TAX) (NO STATE TAX) 2.822 2.568 2.810 2.557 2.938 2.674 2.958 2.692 2.927 2.664 CHAIN B Retail price Retail price (incl. state tax) (no state tax) 2.972 2.705 2.946 2.681 2.922 2.659 2.831 2.576 2.846 2.590 CHAINC Retail price Retail price (incl. state tax) (no state tax) 2.956 2.690 2.844 2.588 2.794 2.543 2.982 2.714 2.802 2.550 Truck stop cost (no state tax) 2.475 2.557 2.606 2.439 2.550 Date 10/20/17 10/21/17 10/22/17 10/23/17 10/24/17 Truck stop cost (no state tax) 2.618 2.362 2.466 2.516 2.353 Scanned with CamScanner Your companhisaputely 100,000 gallons of diesel fuel each month the Perrysburg market. Oh and have each sent you tract in hopes of Date 10/20/17 10/21/17 10/22/17 10/23/17 1024/12 2.JOS 2681 2.659 2.576 2.590 2475 2.557 2006 2.439 2.550 2.972 2.946 2.922 2831 2.846 CHAINC Retail price incl. state and 2.936 2.544 2.794 2.982 2.802 Date 10/20/17 10/21/12 10/22/17 10/23/17 107417 Retail price the state and 2.690 2.500 2.543 2714 2550 Truckstop con (no state 2616 2.362 2.466 2516 235) Scanned with CamScanner your company be The contract proposals are listed below RETAIL DISCOUNT PUMP PEE 0.02 0.02 BIDS TRANSACTIONEE SUPPLIER METHOD 0.25 A Cost plus 0.00 . Retail minus 0.03 050 C Best of As discussed in this chapter, the price of the core plus method is given by the track stop cost plus pump fee, while that of the retail minus method is given by the retail price (without state tax) mines retail discount. There is also a transaction fee associated with purchasing fuel from each of the vendors. This is a one-time cost per transaction, meaning that your trucks must pay this cos every time they buy fuel. regardless of the amount fuel purchased. The average fuel purchase quantity of your drivers (per transaction or per refueling stop) is roughly 100 gallons. CASE QUESTIONS 1. Given the proposed contract, what is your company's average cost of fuel per gallon with each of the fuel vendors? 2. Which truckstop chain should you choose if your goal is to minimize fuel cost? 3. Chain really wants your business and says they will do anything to obtain it. What should their retail discount be in order to obtain your business! Scanned with CamScanner Your companhisaputely 100,000 gallons of diesel fuel each month the Perrysburg market. Oh and have each sent you tract in hopes of Date 10/20/17 10/21/17 10/22/17 10/23/17 1024/12 2.JOS 2681 2.659 2.576 2.590 2475 2.557 2006 2.439 2.550 2.972 2.946 2.922 2831 2.846 CHAINC Retail price incl. state and 2.936 2.544 2.794 2.982 2.802 Date 10/20/17 10/21/12 10/22/17 10/23/17 107417 Retail price the state and 2.690 2.500 2.543 2714 2550 Truckstop con (no state 2616 2.362 2.466 2516 235) Scanned with CamScanner your company be The contract proposals are listed below RETAIL DISCOUNT PUMP PEE 0.02 0.02 BIDS TRANSACTIONEE SUPPLIER METHOD 0.25 A Cost plus 0.00 . Retail minus 0.03 050 C Best of As discussed in this chapter, the price of the core plus method is given by the track stop cost plus pump fee, while that of the retail minus method is given by the retail price (without state tax) mines retail discount. There is also a transaction fee associated with purchasing fuel from each of the vendors. This is a one-time cost per transaction, meaning that your trucks must pay this cos every time they buy fuel. regardless of the amount fuel purchased. The average fuel purchase quantity of your drivers (per transaction or per refueling stop) is roughly 100 gallons. CASE QUESTIONS 1. Given the proposed contract, what is your company's average cost of fuel per gallon with each of the fuel vendors? 2. Which truckstop chain should you choose if your goal is to minimize fuel cost? 3. Chain really wants your business and says they will do anything to obtain it. What should their retail discount be in order to obtain your business! Scanned with CamScanner CASE 5-2 Cyclone Transportation Cyclone Transportation is a medium-sized truckload carrier based in Ohio, United States. You are a procurement manager of this company, whose main responsibility is the procure- ment of diesel fuel for the company's fleet of Class 8 trucks. You have been assigned to negotiate the fuel contract for the Perrysburg. Ohio market. Your assistant has collected the following per gallon information concerning the major truck stop chains (A, B, and C) around that area. You will use this information to analyze each fuel vendor's proposed contract. DATE 10/20/17 10/21/17 10/22/17 10/23/17 10/24/17 TRUCK STOP COST (NO STATE TAX) 2.514 2.421 2.460 2.738 2.570 Date 10/20/17 10/21/17 10/22/17 10/23/17 10/24/17 CHAIN A RETAIL PRICE RETAIL PRICE (INCL. STATE TAX) (NO STATE TAX) 2.822 2.568 2.810 2.557 2.938 2.674 2.958 2.692 2.927 2.664 CHAIN B Retail price Retail price (incl. state tax) (no state tax) 2.972 2.705 2.946 2.681 2.922 2.659 2.831 2.576 2.846 2.590 CHAINC Retail price Retail price (incl. state tax) (no state tax) 2.956 2.690 2.844 2.588 2.794 2.543 2.982 2.714 2.802 2.550 Truck stop cost (no state tax) 2.475 2.557 2.606 2.439 2.550 Date 10/20/17 10/21/17 10/22/17 10/23/17 10/24/17 Truck stop cost (no state tax) 2.618 2.362 2.466 2.516 2.353 Scanned with CamScanner Your companhisaputely 100,000 gallons of diesel fuel each month the Perrysburg market. Oh and have each sent you tract in hopes of Date 10/20/17 10/21/17 10/22/17 10/23/17 1024/12 2.JOS 2681 2.659 2.576 2.590 2475 2.557 2006 2.439 2.550 2.972 2.946 2.922 2831 2.846 CHAINC Retail price incl. state and 2.936 2.544 2.794 2.982 2.802 Date 10/20/17 10/21/12 10/22/17 10/23/17 107417 Retail price the state and 2.690 2.500 2.543 2714 2550 Truckstop con (no state 2616 2.362 2.466 2516 235) Scanned with CamScanner your company be The contract proposals are listed below RETAIL DISCOUNT PUMP PEE 0.02 0.02 BIDS TRANSACTIONEE SUPPLIER METHOD 0.25 A Cost plus 0.00 . Retail minus 0.03 050 C Best of As discussed in this chapter, the price of the core plus method is given by the track stop cost plus pump fee, while that of the retail minus method is given by the retail price (without state tax) mines retail discount. There is also a transaction fee associated with purchasing fuel from each of the vendors. This is a one-time cost per transaction, meaning that your trucks must pay this cos every time they buy fuel. regardless of the amount fuel purchased. The average fuel purchase quantity of your drivers (per transaction or per refueling stop) is roughly 100 gallons. CASE QUESTIONS 1. Given the proposed contract, what is your company's average cost of fuel per gallon with each of the fuel vendors? 2. Which truckstop chain should you choose if your goal is to minimize fuel cost? 3. Chain really wants your business and says they will do anything to obtain it. What should their retail discount be in order to obtain your business! Scanned with CamScanner