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Anonymous A

on Apr 17, 2021

Global

Question about

How is cost per delivery calculated?

Hi all,

Does anyone know how $11.66 per delivery cost was calculated? I tried different methods and could not get the same number.

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Top answer

Ian

Coach

on Apr 18, 2021

Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

Can you lay out your approach(es)? From there we can let you know where you made a mistake (or, perhaps, were correct)

4 comments

Anonymous B

on May 24, 2021

I have the same issue, I calculated correctly that B should be the one to go, but I calculated the price for whole week service (5x8 deliveries + 2x16 deliveries). No idea where the $11,66 came from (nor the others), also tried different methods :)

Caroline

on Aug 31, 2021

I also can't find out how they evaluate the cost per delivery.
E.g. Agence A over a week
- fixed costs 7*$90 = $630
- weekdays costs 8trips * $4/trip * 5weekdays = $160
- weekend costs 16trips * $4/trip * 2days = $128
- trips per day: 5*8 + 2*16 = 72
- (630+160+128)/72 = $12.75/trip
I found out $11.80/trip for the agence B.

Alica

on Apr 13, 2022

Does anyone have the correct calculations by now? :)

Lihui

on May 13, 2022

Agency A:
Weekday Avg cost/ delivery= 90/8+4=15.25
Weekend Avg cost/ delivery= 75/16+2.5=7.1875
Avg cost/delivery= 15.25*(40/72)+7.1875*(32/72)=8.47+3.19=11.66

***
dont like this apporach. too much caculation.
***
Agency A: (90*5+4*40+75*2+2.5*32)/72=11.66
Agency B: (70*5+5*40+60*2+4*32)/72=11.08
***
Easiet way is to caculate the csot differences of Agency A and B, which will largely simplify the cacualtion.
Difference (A-B)/ delivery = (20*5-40+15*2-15*32)/72= 0.58
Can have the same conclustion that B is cheaper than A for about 0.58 cents.