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Astro Industries of Minneapolis, Minnesota, makes weekly shipments to 5 customers in the Dallas area. Each customer's order weighs, on average, 2,500 pounds. A
Astro Industries of Minneapolis, Minnesota, makes weekly shipments to 5 customers in the Dallas area. Each customer's order weighs, on average, 2,500 pounds. A direct truck shipment from Minneapolis to Dallas costs $2,400. The maximum load per truck is 50,000 pounds. a. The total cost for Astro to make direct, single-order shipments to all of its customers is $12000 per week. (Enter your response as a whole number.) The average truck utilization level for the single-order shipment option is 5.0 %. (Enter your response rounded to one decimal place.) b. Suppose a Dallas-based warehousing firm has agreed to run a break-bulk warehousing operation for Astro at a cost of $65 per hundred-weight. Local deliveries to each customer would tack on another $200 per customer per week. The total cost of the break-bulk warehousing option is $11525 per week. (Enter your response as a whole number.) By going with a break-bulk solution, Astro could save $475 per week. (Enter your response as a whole number.) c. The warehousing cost would need to be greater than or equal to $ per hundred-weight for the break-bulk option to be no more attractive than direct shipments. (Enter your response rounded to the nearest whole number.)
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