Question 1

In the context of BU455, which term denotes places where merchandise comes to rest during its journey to the fina
Facilities

Question 2
What forecast time horizon range would be most appropriate for configuring the facilities network?
Several years

Question 3
Which SCM right is most closely associated with the goal of faster deliveries?
Time

Question 4
If a company with 4 DCs costing a total of $4m a year decides to consolidate into just one DC, which of the following
The appropriate formula for this question is as follows: fD * Cf * (sqrt(K)); this is equation (1-1) in the CCB
$4 million = Cf * sqrt(4)
$4 million = Cf * 2
$4 million / 2 = (Cf * 2) / 2
$2 million = Cf

Question 5
If a company relocates its DC from the centre of the DC’s served region to the outskirts of that region then what is th
The appropriate formula to determine this is:

The transportation cost would double because of the increase of (1/sqrt(K)) to (2/(sqrt(K))

Question 6
A company has the following operating parameters: (D; A; R; s) = (4,900 truckloads per year; 2.5 million km2; 400 re
average round trip distance to serve the stores is no longer than 1,000 km, how many DCs does the company need i
This question involves determining the number of DCs to minimize trip duration
Refer to @Distance Minimizing DCs tab
The # of DCs is 5

Question 7
For which of the following parameters would an increase definitely NOT raise the optimal number of DCs?
Ratio of DC storage capacity to throughput (f)

Question 8
A particular country is such that for every 25% of the distance going from west to east, the cumulative demands are
using space-based partitioning, how much of the total demand will the most easterly DC handle?
Over 40% but less than 70%
Question 9
How many retail stores must Canadian Tire have in Halifax (area = 5,490 km2) to ensure that all potential customers
This question involves using the following formula
A x (1.25 / Threshold distance) ^ 2
INPUTS
Area (A) 5490
Threshold distance 15 km

OUTPUTS
The # of retail stores 38

Question 10
After applying rigorous analytics to market projection data, a company with 400 retail stores determines that relatio
number of stores (R) can be represented by the D = R x [14.4 – 3.6x(R/400 – 1)]. What is the projected total demand
This question involves substituting 800 in place of R
D= 800 x (14.4 – 3.6x(800/400 – 1))
D= 8,640

Question 11
For the company in the previous question, which of level of store network expansion has the lowest demand per sto
The expression in the square brackets is demand per store, therefore as R rices the demand will decrease (because
Therefore, the answer is 1,000

Question 12
Which category of decisions is most fitting for the DC sizing decision?
Design

Question 13
If a company with storage requirements as high as 14,600 pallets finds the optimum DC storage capacity as 10,600 p
turnover value was used in the modeling/analysis then which of the following must be true about the correct optim
If inventory turns faster than before then the new optimum storage requirements (i.e., DC size) cannot be larger tha
Therefore, the answer is Q* ≤ 10,600

Question 14
The three SKUs in a Class A have typical storage requirements of 7, 9, and 11 units. If a pallet can store 8 units, how
storage policy is dedicated vis-à-vis class-based?
Dedicated Storage Policy
Round up (7/8) 8; 1 pallet = 1+2+2
Round up (9/8) 9; 2 pallets
Round up (11/8) 11; 2 pallets

1 more pallet would be required if the storage policy is Dedicated

Question 15
If, inclusive of aisle space and maneuvering room for pallet storage/retrieval, a pallet requires 47.88 ft2 and pallets
(to the nearest thousand ft2) to provide storage capacity of 7,111 pallets and office space etc. of 3,500 ft2?
The calculation of the DCs required floor space is as follows
INPUTS
Required pallet space 47.88
Storage capacity (pallets) 7111
Stack height 5
Extra space 3500

OUTPUTS
71,595 = 72 thousand

Question 16
If a DC installs new MHE technology would enable the main aisles and pick aisles to be narrower by 3 feet each, whi
The percentage of the DC's footprint available for storage
This is because narrorwer aisles will never result in a reduction of storage space

Question 17
For which of the following current situations would one see the largest reduction in storage capacity cost if the DC s
initiative that enables a pallet to carry a larger number of SKUs?
The DC uses traditional MHE and a dedicated storage policy

Question 18
If SKU A has the same demand as SKU B but A has the larger storage requirements, which item should get the DC’s m
The SKU with the smaller COI (storage requirements divided by demand) gets the more accessible storage location.
INPUT EXAMPLES
Demand (SKU A) 100
Demand (SKU B) 100
Storage requirement (SKU A) 2 slots
Storage requirement (SKU B) 1 slots

Question 19
If the current optimal batch size is b(old) orders and subsequent introduction of automated sorting changes the opti
b(new)> b(old) Faster sorting = larger optimal batch
Using equation 2-7 from the CCB, a lower Ts (sorting time) will yield a larger value of b (batch size)

Question 20
Under which material handling equipment (MHE) technology category do stock-to-picker systems belong?
Storage and Retrieval Equipment

Question 21
Suppose that for a standard rectangle-shaped warehouse in which the operations are mostly manual, you create a p
and the horizontal axis showing how many storage positions are along the side facility that is parallel to the main ais
which of the following is the most likely result of further increases in nx? {HW3-6}
T reaches a low then rises

Question 22
Which freight transportation mode has the largest share of Canada’s transportation GDP?
Trucking

Question 23
If a shipper’s 3PL lowered its weekly service cost per vehicle and that resulted in the shipper changing its optimum fl
If the unit cost of outsourcing falls then it will be more economical to outsource so the new optimum fleet size will b
V(new)< V(old)

Question 24
Suppose that a manufacturer has (FPR, CPR, C3P) = ($400, $300, $800) and that one-third of the time, no more than
no more than 26 vehicles are required; and 100% of the time, no more than 35 vehicles are required. What is the m
INPUTS
FPR $ 400.00
CPR $ 300.00
C3P $ 800.00

Question 25
A client paying a 3PL $10 million a year under a cost plus arrangement is keen to reap financial savings by eliminatin
and reward the 3PL’s efforts in finding those savings, the client proposes a yearly remuneration formula of 8.7 millio
in order to continue earning $10 million/year?
Need to calculate the amount of savings
8.7 + 0.06 * Savings = 10
Savings = (10 - 8.7) / 0.06 = 40

Question 26
As measured in terms of truckloads, demands by a carrier’s clients over the next four weeks are 1 (week 1), 7 (week
fluctuations and has proposed a more stable delivery pattern of 6 truckloads in the first two weeks and 4 truckloads
clients average weekly inventory if they accept the carrier’s proposal?
Week Ending Inventories
Delivered Client Requested
Week 1 4 4
Week 2 4 1
Week 3 4 7
Week 4

Overall Per Week Average 4 truckloads

Question 27
A manufacturer has a customer that requires 75 units per day and each trip to that customer costs $700 in charges p
periodically sending a truckload shipment of 120 units, what should the delivery schedule and corresponding averag
INPUTS
Daily Demand 100
Truckload 150
Truckload deliveries/day 2/3
Cost per trip $ 750.00

Question 28
A company’s two customers are at distances of x and z from the company. If each customer’s daily demand is one q
to each customer once every four days, what is the company’s average daily round travel distance to serve its two c
The math is as follows: Therefore:
For customer x, round trip travel = 2x (2x + 2z)
For customer z, round trip travel = 2z 4
This occurs every four days (2x + 2z) / 4 =

Question 29
Suppose that the distance between the two customers in Question 28 is y and the company modifies its temporal co
ship a full truckload every other day on a route that delivers half a truckload to one customer then the remaining ha
What would be each company’s average daily round travel distance to serve the two customers?
Now, each trip would be:
x (to one delivery spot) + y (distance to the first customer's stop) + z (return trip from the second customer's stop) /
(x + y + z) / 2

Question 30
Canadian trucking companies with fewer than 20 trucks comprise a very X percentage of the number of carriers and
(X; Y) = (large; small)

Question 31
Which of the following government regulations is aimed at protecting a nation’s transportation industries from wha
Cabotage

Question 32
On a given day, operations at one of an LTL company’s terminals involve 80km of driving and 12 hours of work to pic
sum of hourly cost for labour and transportation equipment, what is the pick-up cost to be allocated each one of the
INPUTS
Driving distance 80 km
Hours of work 12
Fuel cost $ 0.15 /km
Hourly cost $ 30.00
Number of loads 6
Question 33
Consider a carrier using the formula ($160 + x) to model the cost of trips over a particular 100-mile lane, where x is
as the set up cost of a trip and $100 as the distance cost based on $1 per mile. If a trip handles shipments from two
how much of the trip cost should be allocated to the shipper of 40 units if the allocation formula is to evenly split th
Shipper 1
Cost to ship 40 units $ 40.00
Common cost $ 80.00
Total cost $ 120.00

Question 34
Which of the following statements about Canada’s rail cargo sector is TRUE?
Canada’s two Class 1 railroads own US Class 1 railroads

Question 35
As evidenced by its X 1:3 ratio of depreciation expenses to labour cost, the rail freight industry is Y capital intensive
{X; Y} = {higher; more}

Question 36
From a sample of its data, a railroad finds that its heuristic rule of thumb approach for repositioning empty vehicles
produces a solution with a total repositioning cost of $3,800. For which of the following per day total cost of ownin
Any value below the repositioning cost savings of $100 ($3,900 - $3,800) that would result from using the software.
Therefore, $95

Question 37
With which continent does North America have the largest imbalance of more containers coming from than going to
Asia

Question 38
Quay cranes take an average of 1.6 minutes to load a container on a vessel and return to the ready position to load
(i) round trip travel between quay cranes (where they offload export containers) and yard cranes plus (ii) collect exp
What is the most efficient throughput maximizing number of internal trucks that should be assigned to a single quay
The most efficient
INPUTS
Internal trucks min. average 7.7
Quay cranes min. average 1.6

Question 39
Loading all of a ship’s hatches will take 19 hours of quay crane time and 4 such cranes will handle the loading task.
be as close as possible to x hours. What should x be?
INPUTS
Hours of quay crane time 19
Number of cranes 4
Question 40
Which of the following aircrafts handled the majority of commercial cargo before the COVID-19 pandemic?
Passenger aircrafts

Question 41
Which of the following costs will tend to be very similar across airlines?
Neither labour nor fuel

Question 42
As a percentage of total capacity, demand by a cargo carrier's two major customer segments are given by demand =
what should the carrier charge each segment to maximize profit?
INPUTS
Segment 1 Segment 2
Demand function intercepts (Ae and Ag) 95 88
Demand function slopes (Be and Bg) 0.5 1.0
Carrier's variable cost per capacity unit: same each market
es to rest during its journey to the final customer?

the facilities network?

nto just one DC, which of the following is the most likely annual facility cost?
is equation (1-1) in the CCB

outskirts of that region then what is the most likely impact on outbound transportation cost?

to (2/(sqrt(K))

oads per year; 2.5 million km2; 400 retail stores; 3 stores per trip). To ensure that drivers’
w many DCs does the company need if each DC will be located at the centre of the sub-region it serves?

the optimal number of DCs?

t to east, the cumulative demands are 10%, 30%, 60%, 100%. If three DCs are to be sited
asterly DC handle?
 to ensure that all potential customers in Halifax are within 15 km of the nearest store?

00 retail stores determines that relationship between total demand (D in number of truckloads) and
)]. What is the projected total demand if the company doubles its retail store network to 800 stores?

pansion has the lowest demand per store?

s the demand will decrease (because of the -3.6)

timum DC storage capacity as 10,600 pallets but then later realizes that a lower than realistic inventory
must be true about the correct optimum number of DCs (Q*)?
ents (i.e., DC size) cannot be larger than it was before; i.e., Q* ≤ 10,600

units. If a pallet can store 8 units, how many more pallets are required for Class A if the

Class-Based Storage Policy

=5 =[(7+9+11)/8] = 3.375 ; Round up to 4 pallets
a pallet requires 47.88 ft2 and pallets can be stacked 5 high, what is the DC’s required floor space
office space etc. of 3,500 ft2?

les to be narrower by 3 feet each, which of the is unlikely to decrease?

tion in storage capacity cost if the DC succeeds with a product redesign

ents, which item should get the DC’s more accessible storage location in order to minimize travel time for storage/retrieval?
the more accessible storage location.
OUTPUT EXAMPLES
SKU A COI 0.02
SKU B COI 0.01

B gets the more accessible storage location

of automated sorting changes the optimal batch size to b(new) then which of the following must be true?

alue of b (batch size)

ck-to-picker systems belong?

tions are mostly manual, you create a plot with the vertical axis showing average travel time to pick orders (call it T)
e facility that is parallel to the main aisle (call it nx). If the plot starts with a value of T for a low nx but continues to fall as nx ris

tation GDP?

in the shipper changing its optimum fleet size from is V(old) to V(new) then which of the following must be true?
ce so the new optimum fleet size will be lower

at one-third of the time, no more than 15 vehicles are required to transport that manufacturer’s products; two-thirds of the tim
5 vehicles are required. What is the manufacturer’s optimum fleet size?
OUTPUTS
Threshold probability 0.20

The smallest V with a cumulative probability greater than or equal to 0.2 is

1/3 (0.33) of the time no more than 15 vehicles are needed, therefore V = 15

to reap financial savings by eliminating inefficiencies from its transportation and logistics activities. If, as a way to encourage
arly remuneration formula of 8.7 million + 6% of the savings, how much annual savings must the 3PL find for the client

million

ext four weeks are 1 (week 1), 7 (week 2), 4 (week 3), and 8 (week 4). The carrier is concerned about the week-to-week
n the first two weeks and 4 truckloads in the last two weeks. What would be the

Carrying Inventory Ending Inventory

- 0
5 8
8 5
 that customer costs $700 in charges paid to a carrier. If the manufacturer uses temporal consolidation of
ery schedule and corresponding average cost per day be?

OUTPUTS
Delivery schedule 2 truckloads every 3 days

Cost per day $ 500.00 = (# of truckloads * cost per trip) / frequency of del

ach customer’s daily demand is one quarter of a truckload and the company delivers a full truckload
ound travel distance to serve its two customers?

Truckloads
Frequency of days
(x + z) / 2

d the company modifies its temporal consolidation delivery policy to include customer stop consolidation as follows:
o one customer then the remaining half a truckload to the other customer.
he two customers?

ip from the second customer's stop) / 2-day cycle

centage of the number of carriers and, in total, they make a very Y percentage of the industry’s cross-border trips into the US.

n’s transportation industries from what is deemed to be unfair foreign competition?

m of driving and 12 hours of work to pick up 6 loads. If fuel cost is $0.15/km and $30 is the
up cost to be allocated each one of these 6 loads?
OUTPUTS
Pick-up cost $ 62.00
 a particular 100-mile lane, where x is the number of units carried in the truck and the $160 comprises $60
. If a trip handles shipments from two shippers (one shipping 40 units and the other shipping 60 units)
allocation formula is to evenly split the common cost across the two shippers then allocate the remaining cost based on numb
Total Units to Ship Using ($160 + x) Cost Allocation to Shipper 1
Shipper 1 40 $ 260.00 46%
Shipper 2 60
Total units (x) 100

l freight industry is Y capital intensive than the trucking industry.

oach for repositioning empty vehicles results an average daily repositioning cost of $3,900. Suppose that an optimization softw
e following per day total cost of owning (TCO) the optimization software, would it make sense for the railroad to buy that softw
would result from using the software.

e containers coming from than going to that continent?

d return to the ready position to load the next one. Internal trucks take an average of 7.7 minutes to complete a loop compris
rs) and yard cranes plus (ii) collect export containers from yard cranes at storage blocks.
hat should be assigned to a single quay crane?
If the question had said the most resource efficient
OUTPUTS OUTPUTS
5 5

h cranes will handle the loading task. Ideally, the crane-to-hatch assignments should be such that the time each crane takes to

OUTPUTS
5
ore the COVID-19 pandemic?

omer segments are given by demand = 95 - 0.5R1 (segment 1) and 88 - R2 (segment 2). If the cost per percentage point of capa

OUTPUTS
Segment 1 $ 98.00

Segment 2 $ 47.00
$ 6.00
time for storage/retrieval?

k orders (call it T)
 but continues to fall as nx rises,

ng must be true?

roducts; two-thirds of the time,

V = 15

s. If, as a way to encourage

PL find for the client

out the week-to-week

st per trip) / frequency of delivery days

dation as follows:

oss-border trips into the US.

maining cost based on number of units shipped?
ocation to Shipper 1

ose that an optimization software

he railroad to buy that software?

s to complete a loop comprising:

ce efficient

the time each crane takes to load its assigned hatches

per percentage point of capacity is $6,
Mean Round Trip Outbound Travel Distance
DCs in central subregions
Inputs Outputs
Area = 1,000,000 316.23
Number of DCs = 10

DCs on edge of subregions

Inputs Outputs
Area = 1,000,000 632.46
Number of DCs = 10

Cost Minimizing DCs

Inputs
Variable (notation) Value Units
Annual demand (D) = 4900 Truckloads
Sevice region area (A) = 2500000 square km
Number of stores (R) = 400
Number of stops per trip (s) = 3
Maximum round trip distance = 1000 km
DC site: use 1 if central, 2 if outskirts 1
Optimum DC size as a fraction of throughput (f) = 0.1
Buffer stock as a fraction of order quantity ( a) = 0.02
Annual facility cost per unit of demand for 1 large DC (CF) = $ 2,900
Transportation cost per km per truckload (CT) = $ 1.00
Non-transportation cost per order inbound to DCs (CO) = $ 2,000
Annual cost to hold a truckload of inventory at DCs (CH) = $ 4,000

Outputs
Required # of DCs to minimize total cost (K-hat) = 5
Test if alue of f meets the utilization requirement 0.017
YES
X and Y Coordinates for a 1-Median Location (Less Weight to Demand Volume)
Inputs for x Coordinate
Demand i = 10
xi coordinates = 0
Demand j = 40
xj coordinates = 2

Output for x Coordinate

x-Coordinate to serve subregion 1.6

Input for y Coordinate

Demand i = 10
yi coordinates = 6
Demand j = 40
yj coordinates = 3

Output for y Coordinate

y-Coordinate to serve subregion 3.6
 CHAPTER 1 NOT

Distance Minimizing DCs

Inputs
Variable (notation) Value Units
Annual demand (D) = 8100 Truckloads
Sevice region area (A) = 2500000 square km
Number of stores (R) = 400
Number of stops per trip (s) = 1
Maximum round trip distance = 1500 km
DC site: use 1 if central, 2 if outskirts 2

Outputs
Required minimum # of DCs (K-hat) = 5

Maximum Replenishment Distance

Inputs
DCs central within subregions
Area = 1,000,000
Number of DCs = 10

Outputs
Maximum replenishment distance 395.28

DCs on outskirts of subregion

Inputs
Area = 1,000,000
Number of DCs = 10

Outputs
Maximum replenishment distance 790.57
X and Y Coordinates for a 1-Median Location (More Weight to Demand Volume)
Inputs for x Coordinate
Demand i = 10
xi coordinates = 0
Demand j = 40
xj coordinates = 2

Output for x Coordinate

x-Coordinate to serve subregion 1.9

Input for y Coordinate

Demand i = 10
yi coordinates = 6
Demand j = 40
yj coordinates = 3

Output for y Coordinate

y-Coordinate to serve subregion 3.2
 CHAPTER 1 NOTES

Notes: DCs Based on Space/Demand Partitioning

Refer to Excel Workbook Ch.1 Sheet 3: DC Location

# of Stores to Satisfy Criterion

Inputs Outputs
Area = 1,117 Number of stores =
Threshold distance = 10

Required Number of DCs

DCs central within subregions
Inputs
Area = 10,000,000
Target hours in days = 2
Maximum round trip distance = 1,000 km
Specified target (t) 2,000 km

Outputs
Required number of DCs 4

DCs on outskirts of subregions

Inputs
Area = 10,000,000
Target hours (48); days = 2
Maximum round trip distance = 1,000 km
Specified target (t) 2,000 km

Outputs
Required number of DCs 16
ight to Demand Volume)
 17.5

0.001692
0.04113393 1.25 / x

0.04113393

0.04113393x
30.3885399

0.000623

0.02495997 1.25x

50.0801925
Notes: DCs Size to Minimize Cost
Refer to Excel Workbook Ch.2 Sheet 1: DC Size to Minimize Cost

Dedicated vs Class-Based Storage

Inputs
n (# of SKUs) = 3
q (pallet storage) = 8
Stock level 1 = 7
Stock level 2 = 9
Stock level 3 = 11

For Dedicated-Based Storage

Round up to higher value of stock level vs. pallet storage max.
Stock level 1 7 vs 8 Round to 8; therefore 1 pallet needed
Stock level 2 9 vs 8 Round to 9; therefore 2 pallets are needed
Stock level 3 11 vs 8 Round to 11, therefore 2 pallets needed
Total # of pallets 5

For Class-Based Storage

Add all individual stock levels and divide it by the maximum pallet storage
Stock level 1 7
Stock level 2 9
Stock level 3 11
Total # of pallets 4

Storage Positioning and Order Picking Travel Time

For example:
Door Slot = 1 2 3
SKU = A A B
If a customer orders 100 of each SKU and each slot's # is equal to the round trip travel time b/w
the slot and the door, what is the order picking time?

SKU A (slot 1) 50 **Since SKU A has a demand of 100, 50 is alloted

to each slot**
 **Since SKU A has a demand of 100, 50 is alloted
SKU A (slot 2) 100 to each slot**
SKU B (slot 3) 300
Order Picking Time 450

Calculating Cube per Order Index (COI)

Inputs (using the above example)
Demand = 50
# of Storage Slots = 9

Outputs
COI 0.18
The SKU with the smallest COI gets the more accessible storage location
 CHAPTER 2 NOTES

DCs Footprint with Stacking Pallets

Inputs
Required pallet space
Storage capacity (pallets)
Stack height
Extra space

Outputs
71,595

Notes: # of Dock Doors

Refer to Excel Workbook Ch.2 Sheet 3: Number of Dock Doors

DC Dimensions
Inputs
DC storage capacity in number of pallets (S) =
Pallet width (ay) =
Pallet length (ax) =
Pallet stacking level (nz) =
Width of central (main) aisle (wy) =
Width of side aisles (wx) =

Outputs
Number of pallet storage positions parallel to the central aisle (nx) =
Number of pallet storage positions perpendicular to the central aisle (ny) =
Length in feet along the central aisle
Length in feet along the central aisle
Average round trip travel distance for order picking
Actual storage capacity with the optimum dimensions =
Floor area in square feet =
Space utilization for storage =
Order Picking Batch Size
Inputs
Mean walking time to pick orders (TW) =
Mean non- walking time per order during a picking trip (TNW) =
Mean sorting time per order (TS) =
Mean non-sorting time per order (TNS) =

Outputs
Optimal batch size
Given this batch size, mean total time per order for all tasks (T(b)) is =
Number of orders picked by a single worker in a 600-minute day is

Going further: # of orders picked by 5 workers in a 600-min day)

2 NOTES

47.88
7111
5
3500

= 72 thousand rounded

800
3 feet
3 feet
4
11 feet
8 feet

6
34
42 feet
113 feet
98.5 feet
816 pallets
4746
38.69%
 4 minutes
4 minutes
1 minutes
3 minutes

2
11.0 minutes
54.5

273
Notes: Fleet Size to Minimize Cost
Refer to Excel Workbook Ch.3 Sheet 1: Fleet Size to Minimize Cost

Carrier Selection
Inputs
Carrier-specific inputs
Transportation cost per unit (CT) =
Lead time in days (L) =
Standard deviation of lead time (sL) =
Other considerations: (add 5% to sd for Carrier C's loss/damage record

Shipper-specific inputs
Annual demand in units (D) = 15,000
Daily demand in units (d) = 60
Standard deviation of daily demand (sd) = 8.5
Safety stock factor (z) = 2
Annual holding cost per unit stored by the shipper ( CH) = $ 40
Annual holding cost per unit in transit ( CHV) = $ 20

Outputs
Standard deviation of demand during lead time
Required safety stock
Required in-transit stock
Safety stock cost
In-transit stock cost
Transportation service cost
Total cost =
 CHAPTER 3 NOTES

Notes: Shipment Sizing

Refer to Excel Workbook Ch.3 Sheet 4: Shipment Sizing

Carrier A Carrier B Carrier C

$ 1.80 $ 1.50 $ 3.00

4 6 3
1 1.5 0.5
0.05

Carrier A Carrier B Carrier C

80.02 98.03 72.75
161 197 146
240 360 180
$ 6,440 $ 7,880 $ 5,840
$ 4,800 $ 7,200 $ 3,600
$ 27,000 $ 22,500 $ 45,000
$ 38,240 $ 37,580 $ 54,440
 HAPTER 3 NOTES

Workbook Ch.3 Sheet 4: Shipment Sizing

Calculating Pick-Up Costs Notes: Transportation Service
Inputs Outputs Refer to Excel Workbook Ch.4
Driving distance 80 km Pick-up cost $ 62.00
Hours of work 12
Fuel cost $ 0.15 /km Notes: Air Cargo Revenue Man
Hourly cost $ 30.00 Refer to Excel Workbook Ch.4
Number of loads 6
 CHAPTER 4 NOTES

otes: Transportation Service Pricing Notes: Railcar Re-Positioning

fer to Excel Workbook Ch.4 Sheet 1: Transportation Service Pricing Refer to Excel Workbook Ch.4 Sheet 2: R

otes: Air Cargo Revenue Management

fer to Excel Workbook Ch.4 Sheet 3: Air Cargo Revenue Management
Re-Positioning
Workbook Ch.4 Sheet 2: Railcar Re-Positioning
Space-based Partitioning = Evenly spaced

West-East distance 25 50 75 100

West-East demand 10% 30% 60% 100%

Demand Most East DC will Cover

40% but less than 70%