A Math Modeling Approach
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1 A Math Modeling Approach
2 Thousands of Items Total Mail Processed by USPS ,000, ,000, ,000, ,000,000 Mail Volume 180,000, ,000, ,000, ,000, Years Past 2000 USPS-Cost and Revenue Analysis Report [Fiscal Year Reports]. (n.d.). Retrieved September 25, 2010, from
3 Employees of USPS Field Installations GM/PM/Installation Head Supervisors/Managers Prof/ADM/Tech-Field 8408 Total USPS Clerks/Nurses Mail Handlers City Carriers Motor Vehicle Operators 8406 Vehicle Maintenance 5418 Maintenance Service Rural Carrier Area Operations Offices 1397 Total Workforce Postal Employee Stats at a Glance [Table]. (n.d.). Retrieved September 25, 2010, from tats-at-a-glance.htm
4 Operating Costs of Postal Service Operating Expenses Compensation and Benefits In 3 rd quarter, fiscal year; 2010 (Millions of Dollars) 11,866 Retiree Health Benefits 1,964 Worker s Compensation 1,956 Transportation 1,469 Other 2,255 Total Operating Expenses 19,510 Operating Revenue 16,045 Loss from Operations 3,465 Total Cost of Workers=15,786 in millions of dollars United States Postal Service [Table]. (n.d.). Retrieved from Quarter_III_FY10_10Q_Final.pdf
5 Billions of Dollars Current State Losing money Revenue decreasing Not capable of being self sufficient Becoming obsolete Cost Revenue Years Past 2000 United States Postal Service. (2009). Revenue, prices, and weight reports. Retrieved from
6 Billions of Dollars The 10 Year Problem Cost Revenue Years Past 2000 United States Postal Service. (2009). Revenue, prices, and weight reports. Retrieved from
7 Billions of Dollars The 20 Year Problem Cost Revenue Years Past 2000 United States Postal Service. (2009). Revenue, prices, and weight reports. Retrieved from
8 Billions of Dollars The 50 Year Problem Cost Revenue Years Past 2000 United States Postal Service. (2009). Revenue, prices, and weight reports. Retrieved from
9 Automated Postal Center Can support up to 85% of the retail services in a post office Weighs letters, flats, and packages (~70 lbs) Postage for First-Class, Priority, express mail, parcel post, international First-class stamp sheets ZIP CODE look-up Delivery confirmation, certified, and insurance Information about other services offered by the post office Prints Express Mail labels, Certified Mail and return receipt forms Displays delivery and tracking information Prints receipts
10 Implementation and Benefits Cost to Implement 32,741 Post Offices in the United States 1.05 billion dollars to add an additional APC at each location Only one current employee is tasked to do routine service check-ups (do not need to hire new employee) Benefits Need one service clerk to supervise the APC; keep two remaining service clerks to oversee other operations 205,000 service clerks (6-7 per post office) Cut ½ of the current service clerks over a period of 10 years initially SAVE 2.43 billion dollars/year in operating costs
11 Billions of Dollars Projected Effects of APC Cost Revenue Years Past 2000 United States Postal Service. (2009). Revenue, prices, and weight reports. Retrieved from
12 References American Postal Workers Union. (n.d.). Handbook PO-106, Automated Postal Center Program. Retrieved September 26, 2010, from American Postal Workers Union: 106%20automated%20postal%20center%20program% %20%281.72%20mb%29.pdf Number of Employees by Union Code PP10 (May 8, 2006). (n.d.). Retrieved September 26, 2010, from postalreporter.com: Postal Automation Discussion. (n.d.). Retrieved September 26, 2010, from Postalreporter.com: Potter, N. (2009, August 9). List of Post Offices To Close. Retrieved September 26, 2010, from ABC News - Technology: Self Service. (n.d.). Retrieved 26 September, 2010, from USPS: United States Postal Service. (2009). Revenue, prices, and weight reports. Retrieved from USPS. (n.d.). United States Postal Service Quarterly Financial Index, Fiscal Year 2010, Quarter III. Retrieved September 26, 2010, from USPS:
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