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Impact of Discontinuance of Saturday Delivery for Letters and Flats

Author

Listed:
  • Urs Trinkner
  • Andreas Haller

Abstract

Delivery costs are the largest segment of total costs incurred by the United States Postal Service (USPS). These costs comprise 38 percent of total operating costs. Accurately assessing how unit delivery costs behave is crucial to properly attribute costs to products. This report presents the application of a model for estimating the relationship between the cost of city carrier delivery and the number of delivery points receiving mail, as well as the volume of mail to be delivered. This model uses data from the Postal Service that allow the identification of the geographic location of all delivery points served by each delivery route, the volume delivered on the route each day, and the time spent on the route by the carrier. The model simulates each route, determining the shortest linear distance to serve all delivery points receiving mail.

Suggested Citation

  • Urs Trinkner & Andreas Haller, 2014. "Impact of Discontinuance of Saturday Delivery for Letters and Flats," Studies and Reports, Swiss Economics, pages 1-65, February.
  • Handle: RePEc:chc:studse:0010
    as

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    File URL: http://www.swiss-economics.ch/RePEc/files/S0010PRC.pdf
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