6088610
Description
Mind Map by Korima Esparza, updated more than 1 year ago
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Created by Korima Esparza
over 7 years ago
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Costing and Pricing
for Transportation
- Market structure models
- Pure competiotion
- large number of sellers.
- unrestricted entry
- no one can
influence
prices
- large number of sellers.
- perfectly
monopolistic
market
- no close
competitor or
substitute
- no close
competitor or
substitute
- oligopoly
- small
number
of
producers
- small
number
of
producers
- monopolistic
competition
- differentiation of
products
- no one controls a
significant portion of the
market
- differentiation of
products
- Pure competiotion
- cost-of-service pricing
- only one group
of customers
involved
- this group is
responsible
for all costs
- the firm possesses
some degree of
monopoly power
- average cost
- marginal cost
- Decreasing Cost
- common costs
- Value-of-service pricing
- maximum revenue
- no service should be
charged a lower price if
could bear a higher
price.
- maximum revenue
- only one group
of customers
involved
- product or service is
homogeneous
- maximize profits
- produce quantity Qm
- charge price Pm
- produce quantity Qm
- Value-of-service
pricing
- pricing according to
the value of the
product
- third-degree price
discrimination
- differential pricing
- pricing according to
the value of the
product
- Rate making in practice
- general rates
- Exception rates
- Commodity rates
- Class Rates
- rate base point
- rate basis number
- rate base point
- general rates
- Rate Systems Under
Deregulation
- limited
- Special
Rates
- Character-of-Shipment
Rates
- LTL/TL Rates
- Multiple-Car Rates
- Incentive Rates
- Unit-Train Rates
- Per-Car and
Per-Truckload
Rates
- Any-Quantity Rates
- Density Rates
- LTL/TL Rates
- Character-of-Shipment
Rates
- limited
- Area, Location or route rates
- Local Rates
- Joint Rates
- Proportional Rates
- Differential Rates
- Per-Mile Rates
- Terminal-to-Terminal
Rates
- Local Rates
- Time/Service Rate
Structures
- Contract Rates
- Deferred Delivery
- Other Rate Structures
- Corporate Volume Rates
- Discounts
- Loading Allowances
- Aggregate Tender Rates
- FAK Rates
- Corporate Volume Rates
- Contract Rates
- Most Common
Mistakes in
Pricing
- make pricing too
reliant on costs
- prices are not revised
frequently enough
- proce not varied enough
- make pricing too
reliant on costs
- References: Coyle. (2011). Transportation a
supply chain perspective. Ohio: Cengage
Learning Ch. 4
Media attachments
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