E-commerce has had an explosive growth in the last year due to the pandemic. Many different retail companies with home delivery have had a significant increase in sales. Imagine such a company with home delivery by trucks. Each truck costs NOK 600 per hour including all costs. The average distance per trip is 40 KM and they deliver approximately 60 packages per trip. a. Calculate the cost per delivery. Make your own assumptions for the parameters that affect the time of the processes, like speed, loading time and unloading time. What would be their price per delivery, if they want a profit of 5%? b. Discuss the risk for the transport provider in your price calculation.
E-commerce has had an explosive growth in the last year due to the pandemic. Many different retail companies with home delivery have had a significant increase in sales. Imagine such a company with home delivery by trucks. Each truck costs NOK 600 per hour including all costs. The average distance per trip is 40 KM and they deliver approximately 60 packages per trip. a. Calculate the cost per delivery. Make your own assumptions for the parameters that affect the time of the processes, like speed, loading time and unloading time. What would be their price per delivery, if they want a profit of 5%? b. Discuss the risk for the transport provider in your price calculation.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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E-commerce has had an explosive growth in the last year due to the pandemic. Many different retail companies with home delivery have had a significant increase in sales.
Imagine such a company with home delivery by trucks. Each truck costs NOK 600 per hour including all costs. The average distance per trip is 40 KM and they deliver approximately 60 packages per trip.
a. Calculate the cost per delivery. Make your own assumptions for the parameters that affect the time of the processes, like speed, loading time and unloading time. What would be their
b. Discuss the risk for the transport provider in your price calculation.
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