| Course | MT434 Logistics and Distribution Management |
|---|---|
| Unit | Unit 3 |
| Paper type | Carrier selection memo |
| Length | About 780 words, 5 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | BS in Business Administration |
| Updated | October 2026 |
Free sample paper for MT434 Unit 3
The Cheapest Rate Ranks Second Fully Loaded: An MT434 Unit 3 Carrier Selection Memo for 410 Commercial Shipments
[Student Name]
Purdue University Global
MT434: Logistics and Distribution Management
Unit 3 Carrier Selection Memo
[Instructor Name]
[Date]
Petrie Rowing, the three bids and the service history are composite; accessorial shares and service costs are stated assumptions, the liability rules are summarized from the cited sources, and nothing here is legal advice.
TO: Director of Operations, Petrie Rowing FROM: Logistics Analyst RE: Carrier selection for commercial less-than-truckload shipments, next contract year
Recommendation
Award the commercial lane to the broker, conditional on a named-carrier clause and contingent cargo insurance described below. Fully loaded, the broker costs about $41,900 a year less than the regional carrier and $51,500 less than the national carrier.
The Lane
The lane covers 410 less-than-truckload shipments a year to fitness studios, hotels and campus recreation centers, averaging 1,150 pounds. Forty-six of them, single rowers and parts orders averaging about 300 pounds, are light enough to fall to minimum charges. Liftgates are needed on 30 percent of deliveries, 123 shipments, because many studios have no dock, and delivery appointments on half, 205 shipments.
The Bids
The national carrier quotes $41.20 per hundredweight plus a 31 percent fuel surcharge, a $210 minimum, $95 per liftgate and $45 per appointment. The regional carrier quotes $36.80 plus 34 percent fuel, a $195 minimum, $110 per liftgate and $60 per appointment, and hands freight to a partner carrier east of Denver. The broker quotes $44.50 with fuel included, a $185 minimum, $75 per liftgate and $30 per appointment, moving freight on contracted carriers.
Rate Alone
Multiplying each base rate by the year's weight gives $173,512 for the regional carrier, $194,258 for the national and $209,818 for the broker. On this measure the regional carrier wins and the broker comes last.
Fully Loaded
Applying fuel to the heavier shipments and minimums to the 46 light ones, freight comes to $256,690 for the national carrier, $234,671 for the regional and $212,186 for the broker. The broker's all-in rate is lower than either carrier's base rate once fuel is added, because a 31 or 34 percent fuel surcharge more than closes the gap in base rates.
Accessorials add $20,910 for the national carrier, $25,830 for the regional and $15,375 for the broker, in liftgate and appointment fees applied to the shares of shipments that need them.
Service history converts to money. Each late delivery costs Petrie about $185 in rescheduled installation crews and customer credits, and each damage claim about $900 in replacement, return freight and staff time. The national carrier delivered 94 percent on time with claims on 1.2 percent of shipments; the regional carrier 89 percent and 2.2 percent, reflecting the handoff east of Denver; the broker's contracted carriers 95 percent and 1.0 percent. Expected service cost is $8,979, $16,462 and $7,482.
The fully loaded totals are $286,579 for the national carrier, $276,963 for the regional and $235,044 for the broker.
The regional carrier's low base rate disappears in its fuel surcharge, its accessorials and the shipments it hands to a partner east of Denver.
Risk
Using a broker brings a risk the two carriers do not. A broker arranges transportation but does not haul it, and the carrier actually moving a shipment can change from load to load. Under the federal statute governing carrier liability, the motor carrier issuing the bill of lading is liable for loss and damage to the goods (Liability of carriers under receipts and bills of lading, 2024); a broker's own liability for cargo loss is generally narrower. Coyle et al. (2017) note that brokers can lower cost by filling carriers' spare capacity, but the shipper gives up some control over who handles its freight.
The contract should therefore require the broker to tender Petrie's freight only to a short list of named carriers approved by Petrie, to carry contingent cargo insurance covering at least the value of a full shipment, and to report on-time performance and claims monthly by carrier. Rushton et al. (2022) recommend measuring carrier performance against agreed targets rather than relying on reputation, and the monthly report makes that possible.
What the Rate Sheet Hid
On the rate sheets alone, the regional carrier looked about $20,700 cheaper than the national carrier and $36,300 cheaper than the broker. Every line added after base rate moved the order.
Fallback
If the broker will not accept a named-carrier clause, the regional carrier's total is about $9,600 lower than the national carrier's, but its handoff east of Denver drives its late deliveries and claims; the national carrier would be the safer choice for eastern deliveries even at the higher cost.
References
Coyle, J. J., Langley, C. J., Jr., Novack, R. A., & Gibson, B. J. (2017). Supply chain management: A logistics perspective (10th ed.). Cengage Learning.
Liability of carriers under receipts and bills of lading, 49 U.S.C. ยง 14706 (2024).
Rushton, A., Croucher, P., & Baker, P. (2022). The handbook of logistics and distribution management (7th ed.). Kogan Page.
Reading the MT 434 Unit 3 instructions
The third unit asks students to select a carrier for a lane from several bids and justify the choice in a short memo. Instructors expect every charge in the rate sheets applied: base rate, fuel surcharge, minimum charges for light shipments and accessorials such as liftgates and appointments, each applied to the share of shipments that needs it. Service performance should be converted into money, using what a late delivery and a claim cost the shipper. The memo should show both the rate-only ranking and the fully loaded ranking, since the gap between them is often the main finding. Risks of the chosen option should be stated with protections, and a fallback named. Memo format with a recommendation first is standard.
Inside the MT434 Unit 3 example
Addressed to the operations director, the sample opens on its recommendation and the saving behind it. The lane and its accessorial needs follow. Each bid is summarized, then ranked on rate alone. The fully loaded section applies fuel, minimums and accessorials and converts on-time and claims history into dollars, under a highlighted line on where the regional bid loses its lead. A risk section explains the liability difference between brokers and carriers under the federal statute, cites Coyle and colleagues on brokers and Rushton and colleagues on measurement, and sets the contract terms that protect Petrie. A short section totals what the rate sheet hid. A fallback names the national carrier for eastern deliveries if the broker refuses the named-carrier clause.
MT434 Unit 3 rubric: what earns full points
Choosing on base rate is the trap this memo exists to catch, and papers that rank carriers by hundredweight price alone usually pick the wrong one. Accessorials count heavily wherever a rate sheet was supplied: liftgate and appointment fees, fuel percentages and minimums each have to appear, applied to the right share of shipments. On-time performance quoted as a percentage but never priced leaves service out of the decision. Rubrics reward showing both rankings side by side. Credit goes to naming the risk of the chosen option, here a broker's narrower liability, with contract protections. A fallback shows practical judgment. A one-table comparison and memo format with a header and a recommendation paragraph meet the presentation expectation.
MT434 Unit 3 help: mistakes that cost points
The most common weak memo multiplies each base rate by annual weight and recommends the lowest. Another frequent error applies fuel to the whole bill for one carrier and forgets it for another. Students often skip minimum charges, which matter for light shipments, or apply liftgate fees to every delivery. On-time percentages are compared but never turned into money. Many recommend a broker without addressing who is liable for damage. Before submitting, total each bid twice: once on base rate and once with every charge your case supplies. If the two rankings agree, check that you applied the accessorials. If they disagree, the gap is the reason your memo exists, and the opening paragraph should say so.
Get an MT434 Unit 3 example written to your instructions
Carrier bids, rate sheets and a lane description from your Unit 3 prompt are the useful inputs; add your rubric and the memo format your course expects, if it names one. We return a composite memo that prices every accessorial, converts service records to cost and leads with its decision. First custom sample, free, within 24-48h. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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MT434 Unit 3 questions, answered
What belongs in a carrier selection memo besides rates?
Usually fuel surcharges, accessorial fees such as liftgate and appointment charges, minimum charges, and service measures like on-time percentage and claims ratio. The strongest memos convert those service measures into an expected annual cost so every bid can be compared in dollars. Where your case supplies only some of these, use what it gives and say which factors you could not price.
How should on-time performance be turned into money?
Multiply the share of late shipments by annual volume to get expected late deliveries, then multiply by what one late delivery costs the shipper, such as a customer credit, a rebooked crew or an expedited replacement. Your case may give that cost directly. If not, state a reasonable estimate and its basis, because readers check the assumption as closely as the arithmetic.
Should the memo split freight between carriers?
It can, and some prompts invite it. Splitting lets each carrier handle the shipments it prices best, but it can cost volume discounts and add management work. If you recommend a split, show the savings net of those losses. Many graders prefer one clear recommendation with a named backup carrier over a split that is never costed.
Where can I find a free MT434 Unit 3 sample paper?
You can read the complete MT434 Unit 3 memo here, choosing one carrier for 410 commercial shipments after pricing every surcharge and service cost.
Why does the regional carrier lose in the MT434 Unit 3 sample despite the lowest rate?
Its 34 percent fuel surcharge, higher accessorials and the late deliveries and claims from handing freight to a partner east of Denver add about $103,000.