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A regional home goods store has outlets in Atlanta, Birmingham, Charleston, and Jacksonville, and Chattanooga. Products are sent to these facilities in weekly LTL shipments

  1. A regional home goods store has outlets in Atlanta, Birmingham, Charleston, and Jacksonville, and Chattanooga. Products are sent to these facilities in weekly LTL shipments to fulfil their orders from a DC in Savannah (sends total volume of 80 FTL of European import goods), a DC in Fort Worth (200 FTL Asian and Central American Import Goods), and a manufacturing facility in Greenville, SC (that sends 180 FTL of fabrics and carpet).

Management has located a facility in Macon, Georgia that is well suited to breakbulk operations for their products. It could be leased for $50,000 per month and would have $750,000 in annual operating costs (including triple net costs of tax, maintenance and insurance). The current and estimated shipping costs are provided in a table below.

Route

LTL ($)

FTL ($)

Savannah - Atlanta

800

na

Savannah Birmingham

1300

na

Savannah Charleston

600

na

Savannah Jacksonville

600

na

Savannah - Chattanooga

1400

na

Savannah - Macon

600

900

Greenville - Atlanta

600

na

Greenville Birmingham

1000

na

Greenville Charleston

800

na

Greenville Jacksonville

1600

na

Greenville - Chattanooga

900

na

Greenville - Macon

900

1200

Ft. Worth - Atlanta

4000

na

Ft. Worth Birmingham

3500

na

Ft. Worth Charleston

4500

na

Ft. Worth Jacksonville

4500

na

Ft. Worth - Chattanooga

3800

na

Ft. Worth - Macon

4200

5000

Macon - Atlanta

600

800

Macon Birmingham

900

1100

Macon Charleston

1000

1300

Macon Jacksonville

1000

1300

Macon - Chattanooga

1000

1300

Assuming all of the shipments would be FTL, what would be the annual cost of shipping from the current sources to the proposed warehouse? (Enter the closest whole number. To the extent it is appropriate include commas as a 1,000 separator in your number. For example, enter 1,234,567 not 1234567. Do not include the $ sign.)_________________________________

Assuming all of the shipments would be FTL and occur every two weeks, what would be the annual cost of shipping from the the proposed warehouse to all outlets? (Enter the closest whole number. To the extent it is appropriate include commas as a 1,000 separator in your number. For example, enter 1,234,567 not 1234567. Do not include the $ sign.)_______________________

Assuming all of the shipments would be LTL and occur every week, what would be the annual cost of shipping from the the proposed warehouse to all outlets? (Enter the closest whole number. To the extent it is appropriate include commas as a 1,000 separator in your number. For example, enter 1,234,567 not 1234567. Do not include the $ sign.)_____________________

Assuming all of the shipments would be FTL and occur every two weeks, how much per year would the firm be willing to pay to lease and operate the warehouse? (Enter the closest whole number. To the extent it is appropriate include commas as a 1,000 separator in your number. For example, enter 1,234,567 not 1234567. Do not include the $ sign.)_____________________

Assuming all of the shipments would be LTL and occur every week, how much per year would the firm be willing to pay to lease and operate the warehouse? (Enter the closest whole number. To the extent it is appropriate include commas as a 1,000 separator in your number. For example, enter 1,234,567 not 1234567. Do not include the $ sign.)_______________________________

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