Parada Ltd - PARADA LTD Parada Ltd operates a fleet of...

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PARADA LTD Prepared by J. Kroeker, 2009 © Sauder School of Business, UBC. Parada Ltd. operates a fleet of delivery trucks that move shipments of computer parts from Vancouver to Los Angeles and delivers fruit on the return trips from Los Angeles to Vancouver. For Parada a trip is defined as a one-way trip between these two cities. Parada currently has 11 trucks leased, with each lease being for three years, each truck is similar in capabilities with the ability to make a total of 220 trips per annum. The time remaining on these leases ranges from 20 to 26 months. Additional trucks are readily available with similar capabilities and lease terms. The lease rate is fixed per year. The maintenance is performed at the central depot on days when the trucks are not hauling cargo. The manager has asserted that the cost of fuel and maintenance is a function of both weight and distance. The cost of a full load trip is about 60% more for fuel and maintenance than an empty truck. The weight differential between different
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  • Winter '08
  • all
  • Leasing, Truck, Parada Ltd.

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