Question

9. How do we determine acceptable performance for this measurement? (Transportation Cost)

9. How do we determine acceptable performance for this measurement? (Transportation Cost)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

The following are the metrics that can be used in assessing whether the transportation cost that we are incurring are acceptable -

Freight cost per unit shipped : determined by dividing total freight cost by no of units shipped per period.

Outbound freight cost as percentage of net sales: outbound freight cost divided by net sales.

Inbound freight cost as percentage of net purchases: Inbound freight cost divided by purchase dollars.

Transit time

Freight bill accuracy

Accessories as percentage of total freight

Percent of truckload capacity utilized

On time pickups

Add a comment
Know the answer?
Add Answer to:
9. How do we determine acceptable performance for this measurement? (Transportation Cost)
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT