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a.) Assume that each truck is capable of carrying 17,500 pounds. The total cost of the single-order shipments from all of BosssMustang's suppliers is $__
a.) Assume that each truck is capable of carrying 17,500 pounds. The total cost of the single-order shipments from all of BosssMustang's suppliers is $__
the average truck utilization level for the single order shipment option is __%
b.) the total cost of consolidation warehousing option is $__ per week.
the average truck utilization level for warehousing option is __%
Every week BosssMustang of Oakland, California, receives shipments from 20 different suppliers in the Los Angeles area. Each supplier's order weighs, on average, 750 pounds. A direct truck shipment from Los Angeles to Oakland costs $500. A Los Angeles 3PL provider has offered to run a consolidation warehousing operation for Bosss Mustang. The 3PL provider would pick up the shipments from each supplier, process them, and put them on a single truck bound for Oakland. The pickup fee would be $50 per supplier, and the warehousing cost would be $25 per hundred-weight. The direct truck shipment cost would be the same as before, $500Step by Step Solution
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