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fixed cost per shipment EOQ N Total cost per yeaR FTL Sugarboost is a new startup created by former MIT students, Earl and Lillian, and
fixed cost per shipment EOQ N Total cost per yeaR FTL
Sugarboost is a new startup created by former MIT students, Earl and Lillian, and it's based in Boston, MA. The company produces organic cupcakes that only contain Fairtrade ingredients, and it is experiencing quick growth across the US. The production of cupcakes for 2023 is estimated to be 820 pallets for the whole year. All these pallets will be sent a distance of 150 miles to a regional distribution center in Albany, New York. Trucking costs $5.3 per mile, and each truck can carry up to 52 pallets maximum. Loading has a fixed cost of $150, plus $ iv per pallet. Unloading has also a fixed cost of $150, but the cost per pallet is $15. Each pallet is worth $4,000, and the annual inventory holding rate is 30%. What is the total Fixed cost per shipment (including loading, unloading and trucking costs)Step by Step Solution
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