Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Inc. ships its computer products to Buffalo, New York. In 2019, the company shipped 4 million pounds of product through several areas in Buffalo.

ABC Inc. ships its computer products to Buffalo, New York. In 2019, the company shipped 4 million pounds of product through several areas in Buffalo. The logistic Costs in 2019 are given in the table below. Due to growth in emerging markets, the company expects a growth rate of 8% per year through this port for the next five years.

What is the cost to ship 5 million pounds of products for each transportation method (Rail and Truck, respectively)? (Note: Round the variable cost per pound to 3 decimal places)

Rail Truck
Transportation Variable Cost 300,000 245,000
Inventory Costs
Carrying 70,000 68,000
handling 35,000 43,000
Ordering 25,000 27,000
Fixed Cost 267,000 180,000
Total Cost 697,000 563,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operations Management Processes and Supply Chains

Authors: Lee J. Krajewski, Larry P. Ritzman, Manoj K. Malhotra

10th edition

978-013280747, 132807394, 9780132951814, 132807475, 132951819, 978-0132807395

More Books

Students also viewed these General Management questions