A company ships LTL to customers in a market in the Midwest at an average cost of
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A company ships LTL to customers in a market in the Midwest at an average cost of $40 per cwt. It proposes establishing a distribution center in this market. If TL shipment costs $20 per cwt., the estimated inventory-carrying costs are $5 per cwt., and the local cartage (LTL) cost is estimated at $6 per cwt. If the annual shipped volume is 100,000 cwt., what will the annual savings be by establishing the distribution center?
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Related Book For 
Introduction To Materials Management
ISBN: 9780132337618
6th Edition
Authors: J. R. Tony Arnold, Chapman, Stephen N., Lloyd M. Clive
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