Question
Astro Industries of Minneapolis, Minnesota, makes weekly shipments to 35 customers in the Dallas area. Each customer's order weighs, on average, 3,000 pounds. A direct
Astro Industries of Minneapolis, Minnesota, makes weekly shipments to 35 customers in the Dallas area. Each customer's order weighs, on average, 3,000 pounds. A direct truck shipment from Minneapolis to Dallas costs $2,000. The maximum load per truck is 50,000 pounds.
Part 2a.
The
total cost for Astro to make direct, single-order shipments to all of its customers is
$70000
per week. (Enter your response as a whole number.)Part 3The average truck utilization level for the single-order shipment option is
6%.
(Enter your response rounded to one decimal place.)
Part 4b. Suppose a Dallas-based warehousing firm has agreed to run a break-bulk warehousing operation for Astro at a cost of
$50
per hundred-weight. Local deliveries to each customer would tack on another
$300
per customer per week.The total cost of the break-bulk warehousing option is
per week. (Enter your response as a whole number.)
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