Under the conditions assumed for Hypothesis 1, it is apparent that 

 the delivery cost per ton (or coincidentally, per mile) is cheaper for bagged 

 feed than for bulk feed. The delivery cost per ton derived in Table 20 was 

 $2.06 for the former; S2.29 for the latter, at the 80-mile, 10-ton level. If 

 we calculate for comparative purposes, the number of bags per stop (100.0) ; 

 the number of bags per mile (2.5); and the man minutes per bag (2.04) 

 for the bagged routes in Table 20 seems slightly better than that in Ex- 

 ample B, Table 18 (from the modal area of the route data). Hence, this 

 suggests the following application: If bulk equipment is used to the extent 



Table 20. Daily Operating Costs of Bagged and Bulk Delivery Trucks Under Assumed Conditions 



Cost Item Bagged Truck Bulk Truck 



Hypothesis 1: 

 Fixed costs: 



Truck depreciation S2.86 $7.50 



Other fixed costs 2.00 2.00 



Variable costs: 



Driver 10.22 7.44 



Gas and oil 3.05 3.25 



Other variable costs 2.50 2.75 



22.94 



Total operating costs: 20.63 



Cost per mile: .258 .287 



Cost per ton: 2.06^^ 2.29 



Cost per ton mile: 

 Tons delivered per day: 

 Truck miles per day: 



.0258 .0287 



10.0 10.0 



80.0 80.0 



Hypothesis 2: 

 Fixed costs: 



Truck depreciation 2.86 7.50 



Other fixed costs 2.00 2.00 



Variable costs: 



Driver 12.00 12.00 



Gas and oil 3.39 5.23 



Other variable costs 2.75 4.40 



Total operating costs: 23.00 31.13 



Cost per mile: .258 .241 



Cost per ton: 2.00 1.83 



Cost per ton mile: .0224 .0142 



Tons delivered per day: 11.5 17.0 



Truck miles per day: 89.0 129.0 



41 



