National air express National air is a competitive air express firm with offices around the country. Frank Smith, the Chattanooga, Tennessee, station manager, is preparing his quarterly budget report, which will be presented at the southeast regional meeting next week. He is very concerned about adding capital expense to the operation when business has not increased appreciably. This has been the worst first quarter, he can remember: snow storms, earthquakes, and bitter cold. He has asked Marta Lewis, field services supervisor, to help him to view available data and offer and possible solutions.
National air offers door to door overnight air express delivery within the US Smith and Lewis manage fleet of twenty four trucks to handle freight in the Chattanooga area. Routes are assigned by area, usually delineated by zip code boundaries, major streets, or key geographical features, such as the Tennessee river. Pickups are generally handled between 3PM and 6 PM, Monday through Friday. Driver routes are combination of regularly scheduled daily stops and pickups that the customer calls in as needed. These call-in pickups are dispatched by radio to driver. Most call-in customers want as late a pickup as possible, just before closing (usually at 5PM).
When the driver arrives at each pick up location, he or she provides supplies as necessary (an envelope or box if requested) and must receive completed air waybill for each package. Because industry is extremely competitive, a Professional, courteous driver is essential to retaining customers. Therefore, Smith has always been concerned that drivers not rush a customer to complete his or her package and paperwork.
Smith and Lewis have found that they have been unable to meet their customers’ requests for a scheduled pickup on many occasions in the past quarter. Although, on average, drivers are not handling any more business, they are unable on some days to arrive at each...
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