ROCKET SECTION BEFORE THE POSTAL RATE COMMISSION WASHINGTON, D.C. 20268-0001 POSTAL RATE AND FEE CHANGES, 1997 iiZt:::f:,jrII FEE I] II’,jl,, i,, : i7 _ J~.j, )i 54 iii ‘2$ DOCKET NO. R97-1 FLORIDA GIFT FRUIT SHIPPERS ASSOCIATION ANSWERS OF WITNESS MEREWITZ TO INTERROGATORIES OF ALLIANCE OF NONPROFIT MAILERS (ANM) February 1 I,1998 Florida Gift Fruit Shippers Association Answers of Witness Merewitz to interrogatories (FGFSA) hereby provides the of Alliance of Nonprofit Mailers: ANMlFGFSA-Tl-I-II Each interrogatory is stated verbatim, followed by the Answer. ANM/FGFSA-Tl-1 Please refer to your testimony at p. 3, line 12. Explain the term “Inter-B” as used there. Answer: See errata filed January 26, 1998. ANMIFGFSA-Tl-2 Please refer to your testimony at p. 5, line 11. Please explain the meaning of the sentence “When those pieces are converted to pounds .,” Answer: The sentence means that average weight per piece for the years 1991 and 1996 are applied to the number of pieces. The average figure come from parcel post date for 1991 Billing Determinants and 1996 Billing Determinants. ANMIFGFSA-Tl-3 Please refer to your tstimony at p. 13. What does the I’**” signify? Answer: See errata filed January 26, 1998 ANMIFGFSA-Tl-4 (a) please refer to your Exhibit LAM4a. How are the date in LAM-4a generated? (b) Are these Postal Service data or your data? If you or someone working under your direction generated these data, please explain all assumptions that were made to generate those data. Answer: The data in~LAM-4a are generated in the SAS program y96a12. This uses the preferred case of the four cases of y96all. Therein four cases were considered based on two assumptions. One involves whether expansion to the size of truck was allowed and the second was whether postal service FACCAT weighting was used. The run we prefer involves no expansion to size of truck, but allows postal service FACCAT weighting. LAM-4a is merely illustrative because I do not recommend a distribution key in my testimony. ANMIFGFSA-Tl-5 Please refer to p. 15, line 9. (a) What does the (^^) signify? (b) Complete the sentence on line 10 following the word “be”. Answer: See errata filed January 26, 1998 ANMIFGFSA-Tl-6 Please refer to p. 23, line 17. What does the “(^^)” signify? Answer: See errata filed January 26, 1998 ANMIFGFSA-Tl-7 Please refer to p. 24, line 2 and explain or define the term (y96812) as it appears there. Answer: Y96812 is a misprint as correct by the errata. The “‘6” is in fact “a”. This refers to a series of SAS runs denominated y96a 1 through 12. TRACS methodology is used with TRACS data from the highway portion of L.R. H-84. In particular, y96all was run where we had ,four cases depending on whether we follow the TRACS methodology for a)expanding for the emptiness of the truck, and b) the weighting according to FACCAT multipliers. One of the four cases exactly replicated the Postal Service results given in L.R. H-82. ANMtFGFSA-Tl-8 Please refer to p. 25, line 2. What does the “[^^I” signiify? Answer: See errata filed January 26, 1998 ANMIFGFSA-Tl-9 Please refer to p. 25, lines 1O-l 1, and provide a summary of all data which show DBMC mail on incoming runs. Answer: Please see the SAS run y96a14 which is a very slight refinement of run y96all which breaks out the LL mail code specifically. There we see the DBMC tallies were taken on in-bound runs, which is a loqical contradiction. Destination BMC parcels are by definition delivered to the destination BMC by the mailer, and therefore would not require in-bound postal transportation to the BMC. See FGFSA Lib.Ref. H-2 and H-3. The percent of LL mail in each quarter of the Base Year are: Quarter 1 2 3 4 Please see attachment. Per cent 3.69 1.19 1.29 1.61 rercenr; Cufr. 1st Class 2nd Cl Fcdod 5a,27*,rl1n 124,891,547 11,133,400 17,564,941 320,939,249 141.624,723 235, 1.20 If.?, YGL),140 2rJ3.41,6, u23 8.37 11,.04 1.06 6.40 31.10 13.39 0.02 .f.llh I 'f . 2 II 5729557717 9613303074 1308141550 4212865122 29304369386 13418055092 lrl,G44,193 GB7D*7UO9n 2n1n.1.4:3102') 6.33 10.62 1.44 4.65 32.80 14.62 0.02 ‘/ . 01 22!.2" Cl-N Ptrcenl~. CEM 2.654.009 4,654,074 7G6.051 2,OZl,l?47 1,3,500,225 6, Isn.784 b, no1 ACCOUNT-53127 BOIJND-21 far 1st mm Cllf,. Class 2nd Cl Period InternAr.ionrl FRI SI'D A STD B - Other ST” s B: : 1.1, 20.672,035 45,310,222 9,292,518 2U,50'/,189 145,520,772 82,645,801 9,360,910 r->/.yJl,llI 4.31 9.15 1.94 5.96 30.36 17.24 1.95 20.10 2321363138 3733207254 12DO3’7.15’11 2440343404 14800696665 82G1593354 1827230845 149600431I2-i 4.69 7.54 2.42 4.Y3 29.07 16.67 3.69 30.19 1,047,640 2,645,846 743,0!20 1,324,002 7,640,X66 3,650,39S 190.9'10 6.578,359 hCCOUNT=531,27 BOUND-2 MATLCODE I,st Cln33 2nd Cl Perid Int:ern.lI.ior,al PIlI STD A STD 13 - Ocher CuFt 67,605,903 79. Sll'l 325 1, &lo:052 38,9'f7,752 183,4SV, 4'10 64,978,922 CFM 1.1.74 1,3.02 0.32 6.77 31.06 11.29 3.108194649 56180015821 107, '169, q75 177252.L7i.n IL1904072720 5156461738 PeLCCnt CFM 0.31 14.34 0.2G 4.32 36.34 12.57 co3 I 'I, 607, I69 2,OOY. 020 23,801 63'l. 044 5. v51, UT,'3 2,548,389 STD B: KK STD 0: LL STD B: P Pa196 Distribution Inter-BMC 235,128 ?3,608,229 65,485,706 Ktys Using 0.04 12:79 11.37 USPS Estimates 14,644,193 4551947253 5221387900 (Weighted) 0.04 11.10 12.73 for 7 Wail 6,004 3,869,1?7 3,190,472 Types (Y96Alp.14) ACCOUNT-53131 MAILCODE 1st Class 2nd Cl Period Incemational PRI STD A STD B - Other STD B: KK STD R: LL STD B: P PQ296 Diutribucion 1ntra-BMC CuFt 44,123,204 81,834,057 2,487,590 1,7,898,%02 117,152,259 38,954,485 160,092 9,570,149 92,115,388 K~lys Using Perc< CuFt 10.91 20.24 0.62 4.43 28.98 9.64 0.04 2.37 22.78 USPS Estimates CEN COSC 10.78 21.77 15484843174 31257757763 1490858317 1.04 3.28 29.ao 9.83 0.06 4702268166 42769279675 14076023582 89.475,665 2354271304 31335819784 (Weighted) 1.64 21.%2 for 7 Hail 6,172,798 12,363,136 586,562 1,990,627 16,872,683 5,573,028 35,164 918,636 12,346,868 Types (Y96.414) ACCOUNT-53127 BOUND-. PeJXenc MAILCODE ISK Class Cl Period International PRI STD PI STD B - Other STD R: KK STD 8: LL STD 8: P 2nd CuFf 158,075,574 104,794,624 7,226,067 77.175,679 287,632,518 145,oa6,120 739,461 62.141,400 235,172,590 14.66 9.72 0.67 7.16 26.68 13.46 0.07 5.76 21.01 COSK CFM CuFt 12170408971 8158829071 359,101,528 7356662325 26763563774 163039651el 24,524,708 7793588986 24404008810 11.7B 7.90 0.3:; 7.12 25.9CI 15.78 0.02 7.54 23.62 5,024,565 4,323,791 169,757 2,854,217 12,129,704 6,491,671 1,932 2,459;270 10,609,849 ACCOUNT-53127 BOUND-1 MAILCODE 1SK Class 2nd Cl Period International PRI STD A STD B - Orher CuFt 48,751,999 32,610,180 5,103,725 31,897,990 138,512,049 64,469,322 CEW 10.26 6.86 1.07 6.71 29.14 13.56 4416717034 3044493332 240,439,561 4923375952 13235046928 8035284859 Percent CM 8.69 5.99 0.47 9.69 26.05 15.02 COSt 1,673,OOO 1,806,872 116,676 1,730,344 6,812,165 3,521,726 ACCOUNT=53127 BOUND==2 perC.Wlr: CuFc 109.323,576 CuFr. 18.14 CEt4 7753691936 Percent CFM 14.76 COS1; 3,351,566 2nd Cl Period International h.,T 54% 5: LL STD B: P PQ296 Distriburian x2,184,443 2,122,343 "E e-l7 co, b, itl, 096 84,113,320 Kays Using 11.95 0.35 -_ CA 9.82 13.96 USPS Escimaces 5114335739 119,261,967 c Ir3,c*,-'"Y 7199629463 8106255947 (Weighted) 9.73 0.23 ".U3 13.68 15.43 for 7 :Yail 2,516,920 '1, I ;g 2,266,863 2,9i9,049 Types (Y96A141 Tnter-BMC ACCOUNT-53131 MAILCODE 1st Class 2nd Cl Period Internation PRI STD A STD B - Other STD B: KK STD B: 1.1. STD 0: r PQ396 Oircribution Incra-BHC CuFt 46,653,510 80,880,902 3,594,831 3,913,647 107,203,006 38.812.574 254,500 3.987.299 81,998,645 Keys Usinq Percent CuFc 12.70 22.02 0.98 I. 0'1 29.1.9 1.0.5-I 0.07 1.09 22.32 USPS Estimates CR3 13846373020 30268342063 1481418730 1352583569 44760050053 16576125728 129,625,'393 1252277656 32583168005 (Weighted) Percent CR4 9.73 21.;!8 1.04 0.95 31.47 11.&S 0.09 0.88 22.91 :Ear 7 Hail cost 5.570.718 12,231,756 584,356 543,263 18,026,765 6,631,726 52,109 503.043 12,99i;491 Types LY96A14) ACCOUNT-53127 BOUND=. Percent MAILCODE 1st Class 2nd Cl Period Incernacioml PRI STD A STD B - Other STD B: KK STD B: LL STD B: P CuFt 200,185,973 127,996,043 8,497,872 61,323,674 380,539,334 150,069,556 647,262 80,261,151 224,336,436 CuFt 16.22 10.37 0.69 4.97 30.84 12.16 0.05 6.50 18.18 CR4 23081485454 14576209232 733‘841,747 6333739331 46928475704 16617253188 e6,586,396 Y004223397 28524923792 rerccr1t CR4 15.73 9.9:3 0.50 4.32 31.97 11.32 0.06 6.73 19.44 COSIZ 9,255,931 5.515.732 282,263 2,736,899 21,141,370 6.342.24-l 35,431 3,614,228 12,887,678 ACCOUNT=53127 BOUND-1 MAILCODE 1st Class Cl Period Incarnational I'RI ST0 A STD I3 - Ot,her STD B: KK 3’.ID 5: LI. STD B: I' 2nd CUFt 92,922,439 49,179,203 6,038,150 15,4,s3,095 145,849,125 68,777,468 SS8,958 10.131.862 121~27 7,523 Percent curt 18.00 9.53 1.17 2.99 20.26 13.32 0.1.1 1.96 24.66 CO% 13895703592 5066051011 636,661,6-/g 2691949704 16808113868 7901110873 65.390.057 '302,521,727 14451776293 22.30 8.13 1.02 4.32 26.97 12.68 0.10 1.29 .23.20 5,519,690 1,877,207 229,042 1,,261,9?5 7,126.464 2,652,563 26,813 347.094 6,811,193 ACCOUNT-53127 BOUND=2 CUET MA1LCOnE 1sc Class 2nd Cl Period 1nternaciona1 PRI STD A STD B - Other STD B: KK STD B: LL STD B: P PQ396 Distribution Infer-BMC 107.263,534 70,816,840 2,459,722 45,890,579 234,690,210 81,292,087 89,304 70,129,289 97,056,613 Keys Using Percent CuFc CFU 14.45 9165781862 10.96 9510158221 0.34 97.160,068 6.39 3641789628 32.70 30120361835 11.33 8716142315 0.01 21,190,339 9.11 9081701670 13.52 14067147499 USPS Escimatcs (Weighted) 10.88 1X.26 0.12 4.31 35.67 10.32 Cl.03 10.76 16i.66 for 7 Mail 3,736,241 3.638,5?5 53,221 1,474,924 14,014,906 3,489,684 8,618 3,267,234 6.076.486 Types' (Y96A14) ACCOUNT-53131 curt MB.1LCODL 1st Class 2nd Cl Period International PRI STD A STD B - Other STD B: KK STD B: LL STD B: P PQ456 Distribution Intra-BMC 76,510,853 87,079,950 2,759,686 13,427,428 126,775,711 54,136,977 696,132 7,857.498 69,261,469 Keys Using Percent CUFC 17.45 19.86 0.63 3.06 28.91 12.35 0.16 1.79 15.79 USPS Estimates CFM 22455490444' 3094915253s 1069983191, 2130122745 47400188193 18439071337 273,035,374 2167360528 26785185940 (Weighted) Percent CFh COIt. 14.01 6,915,491 20.41 12,106,750 0.71 415,210 1.40 845,761 31.25 10,544,129 12.16 7,212,158 0.16 106,757 1.43 a49.379 17.66 10,468,737 for 7 Mai1 Types (Y96.414) ACCOUNT-S3127 BOUND=. MAILCODE ISC Class 2nd Cl Period International PRI STD A STD B - Other STD B: KK STD 13: LL STD B: P CFM CuFt 228,145,303 147,604,149 4,714,949 76,709,871 329,741,850 165,936,836 1.632.598 97;095;245 235,413,737 17.73 11.47 0.37 5.96 25.62 12.89 0.13 7.54 18.29 15893784298 12170093949 415,945,438 5870606904 35290430815 17280980183 27,247.575 9866343596 23338632334 CuFt Percent CuFt CM 100,874,507 48,704,981 2,784,802 16,263,847 140,091,574 17.51, 8.45 0.48 2.82 24.32 5806200499 3028212424 203,984,831 1436461861 11498454046 Percent Ck?M 13.23 10.13 0.35 4.09 29.31 14.38 0.02 8.21 19.42 cost 6,674,465 5,387,968 202,339 2,421,315 14,615,200 7,999.721 8,964 5.060.797 10,040,676 ACCOUNT=53127 BOUND-1 MAILCODE 1sc Class 2nd Cl Period Intarnatlonal PP.1 STD A PCLC'hnt CFH 11.aa 6.19 0.42 2.94 23.52 COSC 2,411,407 1.176.646 96,078 546,615 4,687.564 S.TD B STD 8: STD,B: RD 8: - Ocher KK LL P ACCOUNT-53127 MAILCODE 1st Class 2nd Cl Period Internationhl PRI STD A STD B - Other STD D: KK STD B: LL STD B: P PQ496 Dirrrihution 97,891,202 039.579 9,649,660 139, oqti, q.34 16.99 0.15 1.67 -77 61 9416421447 19,361,783 708,797,963 166E9691E3 19.26 0.134 1.61 .34 ., 13 3,994,554 6,419 323,458 6,850,706 BOUND-Z CUF't 127,270,746 98,fJ99,168 1,930,147 60,446,024 1,89,650,276 68.045.634 793,019 87,445,365 76.365.303 Keys Using cost 17.90 1~0087503790 13.91 9141881525 0.27 211,960,607 8.50 4434145043 26.63 23792036769 9.57 7064550736 0.11 7,805,792 12.30 9077545633 10.14 6652663151 USPS Estimates IWeighted) 14.:15 12.f13 0.30 6.22 33.38 11.03 0.01 12.74 9.33 for 7 tail 4‘263,058 4,211,322 106,262 1,874,700 9,927,636 4,005,167 2,486 4,737,339 3,189,970 Types (Y96Al4) Inter-HMC ACCOUNT-53131 MAILCODE 1st c1nr+ 2nd Cl Period In~.%rna~lOIl?.L PRI STD A STD B,- Other STD B: KK STD B: LL STD B: P CuFt Percent CuFt 46.767.993 81,093,558 4,049,914 11,598,070 136,138,797 52,479,171 137,004 15,871,643 63,875,009 11.35 19.68 0.98 2.a1 33.04 12.74 0.03 3.85 15.50 CFM 11804511502 27500403034 1264393611 2276952524 56720452073 21716844032 90,455,225 4325207039 25298068042 PercenL CRI 7.02 18.21 o.E:4 1.51 37.56 14.38 0.06 2.96 16.75 cost 4,780,606 10,881,324 497,138 932,834 22,529,272 8,551,703 35,911 1,689,155 10,037,e73 ANMIFGFSA-Tl-10 Please refer to p. 25, line 15. What does “***” mean? Answer: See errata filed January 26, 1998, ANMIFGFSA-Tl-11 At page 27 of your testimony you state that your exercise “follows the TRACS methodology except for three items.” Please identify the three items. Answer: a. An error in PERCONT was corrected. PERCONT is a variable equal to the percent of the container containing items of the same item type (L.R. PCR.17, Pt.3) mail code in question. An “item” is ,a term of art in IOCS and TRACS terminology. It contains mail but does not have wheels. It could be a sack, a tray, half-tray or parcel. b. FACCAT weighting was used and was alternatively used and not used. c. TRACS expands to the size of the truck in the course of several “expansions”. This expansion is the key element which is equivalent to costing each leg. I believe it is theoretically incorrect to follow this procedure so I retain cubic feet unloaded only, without expansion to the size of the truck.. Expansion to the size’of the rigid container, while objectionable, is less objectionable. CERTIFICATE OF SERVICE I hereby certify that I have this day served the foregoing document upon all parties of record in this proceeding on this date in accordance with Section 12 of the Rules of Practice and Procedure. Dated : February 11, 1998
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