Introduction to Transportation Management 311 I001 Spr. 12
Sunday, May 20, 2012
Hardee Transportation Case Study
I. Major Facts
The hours-of-service rules have changed which are impacting the PUD operations. The dispatch centers and bobtail patterns to service customer trailer pools are also being affected by the hours-of-service changes because they were set up on the previous rules.
II. Major Problem
Due to the hours-of service rules and some of the customers PUD operations conflicting, Jim O’Brian and Hardee Transportation is considering increasing detention charges or even dropping some of the largest customers which his sales team believes will cause them to rebel.
III. Possible Solutions
* One possible solution would be asking the customers that require the bobtailing to the shipping locations to eliminate that step in the PUD operations. An advantage would be that this would cut down on the time spent on delivering, but the disadvantage would be that not all of his customers require bobtailing. * O’Brian can request that customers incur additional charges for any non-driving work that is required by the driver. The advantage would be that it would make up for lost wages for the drivers who spend more time doing non-driving work. The disadvantage is that the customer may not be willing to pay the additional charge. * Jim O’Brian can hire more drivers to work for Hardee Transportation. An advantage would be that the additional drivers will allow the company to be able to comply with the new hours-of-service rules. A disadvantage of Jim hiring more drivers would be a possible decline in retention. In addition, Jim would have to put more drivers on his payroll.
IV. Choice and Rationale
The best solution would be for Hardee Transportation to request that customers incur additional charges for any non-driving work that is done by the driver. Jim can negotiate a fair price for any...