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The best example of type-2 worksharing involves, again, presort discounts.
These models represent whatever it is that mailers think about when they decide how much to mail and whether to presort.
Beyond 3 , less attractive customers and relatively more difficult mail would begin to convert to presort.
Thus, a 1-cent increase in the discount causes about 2.5% of the basic volume to shift to presort.
He also ordered bulk mailers to presort their own mail and moved to close many marginal post offices.
Above the first 20 billion pieces, less attractive mail begins to presort and the postal service's costs at the margin undoubtedly begin to increase.
For example, presort discounts have aspects of type 1, type 2, type 3, and maybe some of type 5.
The other curve shown above, in triangles, is a curve of the cost to the postal service of sorting the mail that begins to presort.
In 1998, he and Johnson established a company called Mail2000, which was intended to speed mail delivery by helping businesses presort mass mailings.
The new facility would cost $14.7 million and include a fish ladder, presort pool, sorting facility, and two pump structures for water supply.
In the United States, for example, presort discounts can reduce the cost of First-Class Mail from $0.42 to as low as $0.324.
Thus, the diversion of bill-paying by mail to other methods of bill-paying is having more impact on single-piece than presort First-Class Mail.
If large mailers can "presort" the mail for of a cent and the Postal Service saves 4 , there is no profit reason for offering a larger discount.
If businesses presort and correctly address more mail, the Postal Service should be able to significantly reduce labor costs, which account for about 80 percent of the agency's $54 billion operating budget.
Presort firms are collecting the mail, working with their customers on the quality of their addresses and on the machinability of their addresses, sorting the mail, and entering the mail effectively.
First used by postal services to expedite and automate mail processing, mail sorting systems are now also used by corporations and other mailers to presort mail prior to delivery in order to earn discounts on postage.
Since arriving at Netflix, Mr. Henderson has helped the company take advantage of discounts available to companies that presort their mail, and improved efficiency at its 40 shipping plants sprinkled around the country, all of them near a mail-sorting center.
The sensors, lying on the bottom of the sea, were periodically updated; many now had their own signal processors to presort the data they forwarded, lightening the load on the central computers and enabling more rapid and accurate classification of targets.
The way to think of the above curves is to begin with a discount, go over to the supply curve to get a volume, and then go up to the postal service cost curve to see how much the postal service saved on the last few pieces that converted to presort.
Beyond of a cent, one would expect smaller mailers to begin presorting or that some presort firms would begin to take the mail of highest quality and presort it with optical character readers, probably putting on a barcode at the same time.