1. We have a shipment scheduled to move from Lansing, MI to Albany, NY. You speak with a carrier (truck) 75 miles away from the pickup that requests $2000 to do the load. How many dollars per mile is the carrier requesting? Use Google Maps & please explain your calculation. 2. What is the % margin Convoy makes on this shipment? What is the % margin Convoy secured a truck for compared to market rate? calculation: (shipper rate - carrier payout) / shipper rate - Customer (Shipper) pays Convoy = $2215 - Market rate for carrier payout (suggested by external data) = $1914 - Actual payout from Convoy to Carrier = $2000 3. Shippers have scheduled the following shipments with Convoy. Assume that for each shipment the truck will be operating at maximum legal weight. Also, assume that it will cost the operating company $1.00 to drive empty and $1.50 per mile when loaded to maximum legal weight. Pickup Delivery Payout from Shipper to Convoy Shipment A Los Angeles, CA Las Vegas, NV $900 Shipment B Las Vegas, NV Tucson, AZ $780 Shipment C Phoenix, AZ Riverside, CA $650 * You speak with a carrier that offers to complete all 3 shipments for $2,100. Answer these Questions: a) What is the total number of miles driven for the entire trip? b) What is the lowest rate (not $/mile) the carrier could complete the circuit of shipments for without losing money? c) What is the % margin Convoy makes on this circuit if we book it with the carrier for $2,100? 4. The average truck & trailer in Convoy’s network weighs 35,000 lbs. 80,000 lbs is the most a truck is legally allowed to weigh (freight included) for standard shipments in the United States. This means that most trucks in the Convoy network can haul up to 45,000 lbs of freight. Max legal weight (80,000 lbs) = Weight of truck & trailer (35,000 lbs) + Weight of cargo Assume that a standard truck costs the operating company $1.00 per mile to drive empty and $1.50 per mile when loaded to maximum weight. A Convoy customer (shipper) has scheduled a shipment weighing 36,000 lbs to move from Jacksonville, FL to Chicago, IL. You speak with a carrier (trucking company) that requests $1900 to do the shipment. What is the lowest rate the carrier could complete the job for without losing money? Please explain your calculation in three ways. a. # of miles between Jacksonville and Chicago b. Equation used to get dollars per mile c. What the lowest rate is (not $/mile)
