“ratemaking in practice” part two marketing logistics
TRANSCRIPT
![Page 1: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/1.jpg)
“Ratemaking in Practice” Part Two
Marketing Logistics
![Page 2: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/2.jpg)
Example
Cole, Bardi, Novack (2000) Transportation
![Page 3: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/3.jpg)
Example
• Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.
Cole, Bardi, Novack (2000) Transportation
![Page 4: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/4.jpg)
Example
• Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches form Cross Village, Michigan, to Clifford, Ohio.
• Determine rate basis point.
Cole, Bardi, Novack (2000) Transportation
![Page 5: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/5.jpg)
Example
• Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches form Cross Village, Michigan, to Clifford, Ohio.
• Determine rate basis point.– Cross Village rate basis point = Cheboygan,
Michigan.
Cole, Bardi, Novack (2000) Transportation
![Page 6: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/6.jpg)
Shipping to and fromCross Village, Michigan
![Page 7: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/7.jpg)
Shipping to and fromCross Village, Michigan--it is in the CheboyganRate base area.
![Page 8: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/8.jpg)
Example
• Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches form Cross Village, Michigan, to Clifford, Ohio.
• Determine rate basis point.– Cross Village rate basis point = Cheboygan,
Michigan.
Cole, Bardi, Novack (2000) Transportation
![Page 9: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/9.jpg)
Example
• Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches form Cross Village, Michigan, to Clifford, Ohio.
• Determine rate basis point.– Cross Village rate basis point = Cheboygan,
Michigan.– Clifford rate basis point is Chillicothe.
Cole, Bardi, Novack (2000) Transportation
![Page 10: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/10.jpg)
Example
• Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches form Cross Village, Michigan, to Clifford, Ohio.
• Determine rate basis point.– Cross Village rate basis point = Cheboygan,
Michigan.– Clifford rate basis point is Chillicothe.
• Determine rate basis numbers tariff.
Cole, Bardi, Novack (2000) Transportation
![Page 11: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/11.jpg)
Rate Basis Numbers
Chillicothe Cincinnati Columbus Dayton
Cheyboygan 550 570 490 510
Clare 400 420 360 380
Flint 275 300 227 214
Cole, Bardi, Novack (2000) Transportation
![Page 12: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/12.jpg)
Rate Basis Numbers
Chillicothe Cincinnati Columbus Dayton
Cheyboygan 550 570 490 510
Clare 400 420 360 380
Flint 275 300 227 214
Cole, Bardi, Novack (2000) Transportation
![Page 13: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/13.jpg)
Rate Basis Numbers
Chillicothe Cincinnati Columbus Dayton
Cheyboygan 550 570 490 510
Clare 400 420 360 380
Flint 275 300 227 214
Cole, Bardi, Novack (2000) Transportation
![Page 14: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/14.jpg)
Example
• Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.
• Determine rate basis point.– Cross Village rate basis point = Cheboygan,
Michigan.– Clifford rate basis point is Chillicothe.
• Determine rate basis numbers tariff.
Cole, Bardi, Novack (2000) Transportation
![Page 15: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/15.jpg)
Example
• Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.
• Determine rate basis point.– Cross Village rate basis point = Cheboygan,
Michigan.– Clifford rate basis point is Chillicothe.
• Determine rate basis numbers tariff.• Determine class rating.
Cole, Bardi, Novack (2000) Transportation
![Page 16: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/16.jpg)
• Plastic material.– Sub 1 Exceeding 9 feet, 6 inches in two dimensions
or 20 feet in one dimension.• LTL – 85• TL – 45• MW - 30
– Sub 2 Not exceeding 9 feet, 6 inches in more than one dimension nor 20 feet in one dimension.
• LTL – 60• TL – 35• MW - 30
Page 331 Cole, Bardi, Novack (2000) Transportation
![Page 17: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/17.jpg)
• Plastic material.– Sub 1 Exceeding 9 feet, 6 inches in two
dimensions or 20 feet in one dimension.• LTL – 85• TL – 45• MW - 30
– Sub 2 Not exceeding 9 feet, 6 inches in more than one dimension nor 20 feet in one dimension.
• LTL – 60• TL – 35• MW - 30
Page 331 Cole, Bardi, Novack (2000) Transportation
![Page 18: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/18.jpg)
• Plastic material.– Sub 1 Exceeding 9 feet, 6 inches in two
dimensions or 20 feet in one dimension.• LTL – 85• TL – 45• MW - 30
– Sub 2 Not exceeding 9 feet, 6 inches in more than one dimension nor 20 feet in one dimension.
• LTL – 60• TL – 35• MW - 30
Page 331 Cole, Bardi, Novack (2000) Transportation
![Page 19: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/19.jpg)
Rate Basis Numbers
Chillicothe Cincinnati Columbus Dayton
Cheyboygan 550 570 490 510
Clare 400 420 360 380
Flint 275 300 227 214
Cole, Bardi, Novack (2000) Transportation
![Page 20: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/20.jpg)
Rate Basis Numbers
Chillicothe Cincinnati Columbus Dayton
Cheyboygan 550 570 490 510
Clare 400 420 360 380
Flint 275 300 227 214
Cole, Bardi, Novack (2000) Transportation
![Page 21: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/21.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846
M20M 1459 705 640
M30M 1292 624 572Cole, Bardi, Novack (2000) Transportation
![Page 22: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/22.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846
M20M 1459 705 640
M30M 1292 624 572Cole, Bardi, Novack (2000) Transportation
![Page 23: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/23.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846
M20M 1459 705 640
M30M 1292 624 572Cole, Bardi, Novack (2000) Transportation
![Page 24: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/24.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846
M20M 1459 705 640
M30M 1292 624 572Cole, Bardi, Novack (2000) Transportation
More than 500 pounds
![Page 25: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/25.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846
M20M 1459 705 640
M30M 1292 624 572Cole, Bardi, Novack (2000) Transportation
More than 1,000 pounds
![Page 26: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/26.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846
M20M 1459 705 640
M30M 1292 624 572Cole, Bardi, Novack (2000) Transportation
More than 2,000 pounds
![Page 27: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/27.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846
M20M 1459 705 640
M30M 1292 624 572Cole, Bardi, Novack (2000) Transportation
More than 5,000 pounds
![Page 28: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/28.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846
M20M 1459 705 640
M30M 1292 624 572Cole, Bardi, Novack (2000) Transportation
More than 10,000 pounds
![Page 29: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/29.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846
M20M 1459 705 640
M30M 1292 624 572Cole, Bardi, Novack (2000) Transportation
More than 20,000 pounds
![Page 30: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/30.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846
M20M 1459 705 640
M30M 1292 624 572Cole, Bardi, Novack (2000) Transportation
More than 30,000 pounds
![Page 31: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/31.jpg)
Example
• Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.
Cole, Bardi, Novack (2000) Transportation
![Page 32: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/32.jpg)
Example
• Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.
Cole, Bardi, Novack (2000) Transportation
![Page 33: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/33.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846
M20M 1459 705 640
M30M 1292 624 572
Minimum 10,000 pounds
Cole, Bardi, Novack (2000) Transportation
![Page 34: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/34.jpg)
• Plastic material.– Sub 1 Exceeding 9 feet, 6 inches in two dimensions
or 20 feet in one dimension.• LTL – 85• TL – 45• MW - 30
– Sub 2 Not exceeding 9 feet, 6 inches in more than one dimension nor 20 feet in one dimension.
• LTL – 60• TL – 35• MW - 30
Page 331 Cole, Bardi, Novack (2000) Transportation
![Page 35: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/35.jpg)
• Plastic material.– Sub 1 Exceeding 9 feet, 6 inches in two dimensions
or 20 feet in one dimension.• LTL – 85• TL – 45• MW - 30
– Sub 2 Not exceeding 9 feet, 6 inches in more than one dimension nor 20 feet in one dimension.
• LTL – 60• TL – 35• MW - 30
Page 331 Cole, Bardi, Novack (2000) Transportation
![Page 36: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/36.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846M20M 1459 705 640
M30M 1292 624 572
Minimum 10,000 pounds
Cole, Bardi, Novack (2000) Transportation
![Page 37: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/37.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846M20M 1459 705 640
M30M 1292 624 572
Minimum 10,000 pounds
Cole, Bardi, Novack (2000) Transportation
![Page 38: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/38.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846M20M 1459 705 640
M30M 1292 624 572
846 cents/cwt
Cole, Bardi, Novack (2000) Transportation
![Page 39: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/39.jpg)
Example
• Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.
Cole, Bardi, Novack (2000) Transportation
![Page 40: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/40.jpg)
Example
• Move 11,000 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.
Cole, Bardi, Novack (2000) Transportation
![Page 41: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/41.jpg)
Example
• Move 11,0 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.
Cole, Bardi, Novack (2000) Transportation
![Page 42: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/42.jpg)
Example
• Move 11,0 pounds of plastic sheets exceeding 9 feet, 6 inches from Cross Village, Michigan, to Clifford, Ohio.
Cole, Bardi, Novack (2000) Transportation
110 cwt
![Page 43: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/43.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846M20M 1459 705 640
M30M 1292 624 572
846 cents/cwt$8.46 x 110cwt
Cole, Bardi, Novack (2000) Transportation
![Page 44: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/44.jpg)
Rate Basis Number 501-550
Weight Class 200
Class 100
Class 85
M5C 3775 1824 1633
M1M 2900 1401 1264
M2M 2488 1202 1092
M5M 2035 983 888
M10M 1933 934 846M20M 1459 705 640
M30M 1292 624 572
846 cents/cwt$8.46 x 110cwt= $930.60
Cole, Bardi, Novack (2000) Transportation
![Page 45: “Ratemaking in Practice” Part Two Marketing Logistics](https://reader036.vdocuments.us/reader036/viewer/2022062408/56649f305503460f94c4b880/html5/thumbnails/45.jpg)
End of Program.