Question
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
- 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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