Freight Review
Depots
Correspondence
Extract from the freight review prepared for the board of a regional produce cooperative
The cooperative ships crates of produce from its packing house to three city depots once a week. All of that traffic currently goes to Carrier P; this review was commissioned to test whether Carrier Q would be cheaper.
Carrier P prices crate by crate. It charges a base rate of $1.10 for each crate, plus $0.06 for each crate for every kilometre between the packing house and the depot that crate is going to.
Carrier Q prices by the pallet, at $260 a pallet. A pallet holds up to 40 crates, and a partly filled pallet is billed as a full one.
Weekly volumes and depot distances are in the Depots tab. Two further terms of the two quotations came to light after this extract was drafted; they are in the Correspondence tab.
Weekly shipping pattern from the packing house.
| Depot | Distance from packing house (km) | Crates shipped per week |
|---|
| Northgate | 120 | 150 |
| Eastbrook | 240 | 80 |
| Selwyn | 60 | 210 |
From: Halima Bakayoko, logistics coordinator
To: Ravi Chandrasekaran, board secretary
Subject: Two terms the review extract leaves out
Carrier P's per-crate rates are quoted correctly in the review, but P also charges a handling fee of $75 for each depot it serves on each weekly run. Carrier Q charges no handling fee.
Carrier Q, for its part, will not accept an order of fewer than three pallets for any one depot: a depot needing only one or two pallets is billed for three.
From: Ravi Chandrasekaran
To: Halima Bakayoko
Subject: RE: Two terms the review extract leaves out
Noted, and thank you. For the board's purposes, remember that nothing in either quotation obliges us to give one carrier all three depots — we are free to use whichever carrier we prefer at each depot.
For each of the following statements, select Yes if the statement can be shown to be true on the information in the three tabs. Otherwise, select No.
