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Example Rates: USPS Versus UPS Essay

With the USPS flat rate boxes, “if it fits, it ships,” (up to 70 pounds), making the service especially good for dense or heavy products. As an example of just what this might mean, HYPERLINK “http://thechive.com/2011/04/05/the-usps-flat-rate-box-claims-that-if-it-fits-it-ships-or-does-it-20-photos/” TheChive website blogged about flat rate shipping early this month. The blog post’s author shipped nearly 60 pounds of pennies in a flat rate box. The package arrived on time and in great shape for the flat rate price, a similar package shipped on another carrier would have been several times more expensive. Below are several price comparisons, looking at USPS flat rate shipping versus United Parcel Service (UPS). In the first comparison, I looked at shipping rates for 1, 3, and 5 pound packages that fit in the 8 5/8″ by 5 3/8″ by 1 5/8″ small flat rate box versus an identical package shipped via UPS. In the examples, the packages are shipped from Caldwell, Idaho to New York, Orlando, Chicago, Dallas, San Diego, and Las Vegas.

The UPS rate quotes are based on delivery to a residential address and include the company’s current 7.5 percent fuel surcharge on ground packages and 13 percent fuel surcharge on air packages. This fuel surcharge will rise to 8.5 percent and 15 percent respectively on May 2, 2011. Also, it is important to note that these are the UPS’ published rates directly from its website. UPS is known to give frequent shippers some discounts. But those discounts are not published and vary greatly based on geographic location and the merchant’s negotiation skills. Finally, remember that USPS flat rate boxes and UPS 2nd Day Air boxes are free to the merchant. For UPS ground shipments, the merchant will need to purchase a box at an additional cost, perhaps adding 50 cents or $1 to the merchants shipping investment Part 3:

Q1: What are the main advantages that quantitative techniques for forecasting have over qualitative techniques? What limitations? Qualitative is mainly inputs- real numbers ,Quantitative are based on yearly events or what’s forecasted to come 2)What are some of the consequences for poor forecasts?Demand for an item, items have a way of counseling their selves out, allowances should be made for forecasts errors. Q7: contrast the use of MAD and MSE in evaluating forecasts.? Both the Mean Absolute

Deviation (MAD) and the Mean Absolute Error (MAE) refer to the same method for measuring forecast error.MAD is most useful when linked to revenue, APS, COGS or some other independent measure of value. MAD can reveal which high-value forecasts are causing higher error rates. MAD takes the absolute value of forecast errors and averages them over the entirety of the forecast time periods. Taking an absolute value of a number disregards whether the number is negative or positive and, in this case, avoids the positives and negatives canceling each other out. MAD is obtained by using the following formula:

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