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Case 4-2 Hardee Transportation

The Assignment: Answer the four (4) questions at the end of Case 4-2

Resources: Course Textbook, Appendix 4B, Table 4B-1, Attached worksheet (Word or Excel format)

Acceptable Length: Show your work for solution to questions 1 and 2.  Well-written responses to question 3 and 4.

Formatting Requirements: 

  • Enter your name and date
  • Provide well-structured solutions/answers- incomplete answers will receive partial credit
  • Show your work

2. Answer case questions, using the attached word template or excel document.  Complete assignment and submit as an attachment using the assignment link when finished.

Solution

Case 4-2 Hardee Transportation
The analysis for this case can be structured in the same manner as the truckload costing example given in the Appendix to this chapter. The analysis is as follows.
I.   Pickup: 40 miles and 4 hours
II.  Sorting: 8 hours (using 2 dock workers)
III.  Linehaul: 1249 miles and 43 hours, 48 minutes
IV.  Delivery: 15 miles and 2 hours, 30 minutes
1. What are the pickup, sort, line-haul, and delivery costs to Hardee for this move?
I.                   Pickup
1.      Depreciation: Tractor 4.0 [email protected] $2.74/hr. $10.96
Trailer 4.0 [email protected] $0.57/hr. $2.28
2.      Interest: Tractor 4.0 [email protected] $3.18/hr. $12.72
Trailer 4.0 [email protected] $0.72/hr. $2.88
3.      Fuel 4.0 [email protected] $0.64/mile $2.56
4.      Labor 4.0 [email protected] $22/hr. $88.00
5.      Maintenance 40 [email protected] $0.152/mile $6.08
6.      Insurance 40 [email protected] $0.067/mile $2.68
7.      Billing $1.95
Total Pickup cost (Max 10 points) $130.11
II.                Sorting
1.      Labor 2 workers x 8 hr. x $22 $352.00
Total Sorting cost (Max 10 points) $352.00
III.             Linehaul
1.      Depreciation: Tractor 43.8 [email protected] $2.74/hr. $120.01
Trailer 43.8 [email protected] $0.57/hr. $24.97
2.      Interest: Tractor 43.8 [email protected] $3.18/hr. $139.28
Trailer 43.8 [email protected] $0.72/hr. $31.54
3.      Fuel 1249 [email protected] $0.64/mile $799.36
4.      Labor 1249 [email protected] $0.45/mile $562.05
5.      Maintenance 1249 [email protected] $0.152/mile $189.85
6.      Insurance 1249 [email protected] $0.067/mile $83.68
Total Linehaul cost (Max 10 points) $1,950.74
IV.             Delivery
1.      Depreciation: Tractor 2.5 [email protected] $2.74/hr. $6.85
Trailer 2.5 [email protected] $0.57/hr. $1.43
2.      Interest: Tractor 2.5 [email protected] $3.18/hr. $7.95
Trailer 2.5 [email protected] $0.72/hr. $6.85
3.      Fuel 15 [email protected] $0.64/mile $9.60
4.      Labor 2.5 hr. @ $22/ hr. $55.00
5.      Maintenance 15 [email protected] $0.152/mile $2.28
6.      Insurance 15 [email protected] $0.067/mile $1.01
Total Delivery cost (Max 10 points) $90.96
2. What is the total cost of this move?
V.                   Total Cost
1.      Pickup, sort, linehaul, delivery $2,523.81
2.      Administrative/Overhead (10%) $252.38
Total Truckload cost (Max 10 points) $2,776.19
2b. Cost per cwt? Cost per mile
VI.               Revenue Needs
1.      Per cwt. ($2850.29/440) = $6.17 $6.31 $6.17
2.      Per revenue mile ($2776.19/1249) = $2.22 $2.22
Cost per cwt? Cost per revenue mile Max 5 points each)
3. If Hardee would put two drivers in the tractor for the line-haul move, there would be no rest required for drivers during the line-haul move. What would happen to the total costs? (Max 20 points)
Question 4. Assume that Hardee has no loaded backhaul to return the vehicle and driver to Pittsburgh. How would you account for the empty backhaul costs associated with this move? Would you include those in the headhaul move? How would this impact your pricing strategy? (Max 20 points)

Student Worksheet

Case 4-2 Hardee Transportation
The analysis for this case can be structured in the same manner as the truckload costing example given in the Appendix to this chapter. The analysis is as follows.
I.   Pickup: 40 miles and 4 hours
II.  Sorting: 8 hours (using 2 dock workers)
III.  Linehaul: 1249 miles and 43 hours, 48 minutes
IV.  Delivery: 15 miles and 2 hours, 30 minutes
1. What are the pickup, sort, line-haul, and delivery costs to Hardee for this move?
I.                   Pickup
1.      Depreciation: Tractor
Trailer
2.      Interest: Tractor
Trailer
3.      Fuel
4.      Labor
5.      Maintenance
6.      Insurance
7.      Billing
Total Pickup cost (Max 10 points) $0.00
II.                Sorting
1.      Labor
Total Sorting cost (Max 10 points) $0.00
III.             Linehaul
1.      Depreciation: Tractor
Trailer
2.      Interest: Tractor
Trailer
3.      Fuel
4.      Labor
5.      Maintenance
6.      Insurance
Total Linehaul cost (Max 10 points) $0.00
IV.             Delivery
1.      Depreciation: Tractor
Trailer
2.      Interest: Tractor
Trailer
3.      Fuel
4.      Labor
5.      Maintenance
6.      Insurance
Total Delivery cost (Max 10 points) $0.00
2. What is the total cost of this move?
V.                   Total Cost
1.      Pickup, sort, linehaul, delivery
2.      Administrative/Overhead (10%)
Total Truckload cost (Max 10 points) $0.00
2b. Cost per cwt? Cost per mile
VI.               Revenue Needs
1.      Per cwt. $0.00
2.      Per revenue mile $0.00
Cost per cwt? Cost per revenue mile Max 5 points each)
3. If Hardee would put two drivers in the tractor for the line-haul move, there would be no rest required for drivers during the line-haul move. What would happen to the total costs? (Max 20 points)
Question 4. Assume that Hardee has no loaded backhaul to return the vehicle and driver to Pittsburgh. How would you account for the empty backhaul costs associated with this move? Would you include those in the headhaul move? How would this impact your pricing strategy? (Max 20 points)

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Case 4.2 -Hardee Transportation Worksheet/Answer Sheet-LOG-125

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The analysis for this case can be structured in the same manner as the truckload costing example given in the Appendix to this chapter. The analysis is as follows.

1. Pickup: 40 miles and 4 hours

2. Sorting: 8 hours (using 2 dock workers)

3. Linehaul: 1249 miles and 43 hours, 48 minutes

4. Delivery: 15 miles and 2 hours, 30 minutes

1. What are the pickup, sort, line-haul, and delivery costs to Hardee for this move?

           I. Pickup

1. Depreciation: Tractor

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Trailer

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2. Interest: Tractor

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Trailer

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3 Fuel

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4. Labor

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5. Maintenance

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6. Insurance

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7. Billing

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Total Pickup Cost (Max 10 points) Click or tap here to enter text.

II. Sorting

1. Labor

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Total Sort Cost (Max 10 points) Click or tap here to enter text.

III. Line-haul

1. Depreciation: Tractor

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Trailer

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2. Interest: Tractor

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Trailer

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3 Fuel

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4. Labor

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5. Maintenance

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6. Insurance

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Total Line-haul Cost (Max 10 points) Click or tap here to enter text.

Case 4.2 -Hardee Transportation Worksheet/Answer Sheet-LOG-125

IV. Delivery Cost

1. Depreciation: Tractor

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Trailer

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2. Interest: Tractor

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Trailer

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3 Fuel

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4. Labor

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5. Maintenance

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6. Insurance

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Total Delivery Cost (Max 10 points) Click or tap here to enter text.

2. What is the total cost of this move?

           V. Total Cost

1. Pickup, Sort, linehaul, delivery

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2. Administrative/Overhead (10%)

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Total Cost of Move (Max 10 points) Click or tap here to enter text.

2b. Cost per cwt? Cost per revenue mile?

VI. Revenue Needs

1. Per cwt.

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Cost per CWT (Max 5 points) Click or tap here to enter text.

2. Cost per Revenue Mile

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Cost per Revenue Mile (Max 5 points) Click or tap here to enter text.

3. If Hardee would put two drivers in the tractor for the line-haul move, there would be no rest required for drivers during the line-haul move. What would happen to the total costs? (Max 20 points)

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4. Assume that Hardee has no loaded backhaul to return the vehicle and driver to Pittsburgh. How would you account for the empty backhaul costs associated with this move? Would you include those in the headhaul move? How would this impact your pricing strategy? (Max 20 points)

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