Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bruin Logistics handles hundreds of shipments from businesses in the Los Angeles area. At present, Bruin has three shipments to deliver to the Atlanta area.
Bruin Logistics handles hundreds of shipments from businesses in the Los Angeles area. At present, Bruin has three shipments to deliver to the Atlanta area. Click the icon to view the shipments table. The cost to Bruin of sending a truck from Los Angeles to Atlanta is $2,500. The maximum load per truck is 17,000 pounds. If Bruin were to use a direct truck shipment for each customer, the shipping costs would be $2,500 per customer, or $7,500 total. The weight utilization across all three trucks would be 8,000 pounds/51,000 pounds, or just 16%-hardly an economic or environmentally wise use of resources. But suppose Bruin has a consolidation warehouse where loads from multiple customers can be combined. Of course, there are costs associated with consolidation. Assume that the cost of running the warehouse is approximately $13 per hundred-weight. Furthermore, if Bruin decides to consolidate the three shipments, it must consider the additional cost of breaking them up for local delivery, which is not an issue in direct trucking. Suppose the cost of breaking up the shipments is $250 for each customer. Under these conditions, the costs of consolidating the three shipments to Atlanta would be: Click the icon to view the consolidated delivery costs. Given all of this information, recalculate the cost of the consolidation option if all costs remain the same except: a. The cost of running the warehouse doubles to $26 per hundred-weight. All other values stay the same as provided in the problem statement. The cost of the consolidation option is $ (Enter your response as a whole number.) More Info Customer Venetian Artists Supply Kaniko Ardent Furniture More Info Shipment 140 boxes, drawing paper 50 PC printers 5 dining room sets Weight 2,000 lbs. 4,500 lbs. 1,500 lbs. Total: 8,000 lbs. Consolidated delivery costs Warehousing costs Cost of one truck to Atlanta Delivery to final customer $13(8,000 lb./100 lb.) = $1,040 $2,500 3 customers x $250 = $750 Total: $4,290
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started