Four Warehouse options have information about the various costs to help make a good economic decision on which is the best choice. Use a formula to calculate each of the yellow boxes on the Warehouse problem page. Note: On variable cost you may use either cost per pound (orange box) or cost per pallet to get your final answer. You decide which you want to use. At present, the plan is to store 30 million pounds of frozen product in a leased warehouse. Cells B13, D13, F13, and G13 are the final total cost for each option and are in gray. Make sure to show your formulas for full credit. All the information and calculations may or may not be needed to calculate cost as there are multiple ways and formulas to get to the correct answers. All of the highlighted boxes must be populated even if you do not use them in the final calculation. All options have good access to the interstate highway system. Option 4 has a rail dock and the others do not. The hours of operation at Options 1 and 2 are 5 am to 1 am while Options 3 and 4 are open from 5:30 am to 1:30 am. Options 1 and 2 use the same outside freight hauler to make deliveries, Option 3 uses a service that uses special software that allows you to track exactly where the trailer is from the time it leaves the warehouse, and Option 4 operates it's own fleet of trailers. C D Warehouse Problem See instruction tab for further information Option 1 $ 250,000 12.00 12.00 Option 3 $ 750,000 Option 4 20.00 ase cost allet charge in allet charge out allet charge per month eight charpe per mile ailes to plant Option 2 $ 100,000 14.00 12.50 10.00 2.10 23 5.00 2.10 15 5.00 2.25 5 20.00 1.55 48 ariable cost per pallet or ariable cost per pound med cost tal cost 5 5 30 0.04 S 5 39 0.06 5 S 0.01 $ 5 43 0.08 Volume (lbs 30,000,000 est option at 30 million pounds Option 1 Ibs per total pounds 30,000,000 Pallets per Pallets per Trucks per trucks per trucks per pallet truck year year month week 1500 24 D Warehouse Problem 2 See instruction tab for further information Option 3 5 750,000 Option 4 3 & Lease cost 5 Pallet change in 6 Pallet charge out 1 Pallet charge per month 8 Freight charge per mile 9 Miles to plant Option 1 $ 250,000 12.00 12.00 5.00 2.10 15 20.00 Option 2 $ 100,000 14,00 12.50 10.00 2.10 23 5.00 2.25 5 20.00 1:55 $ $ S 30 0.04 5 S 19 0.06 5 0.01 $ 0.08 10 Variable cost per pallet or 11 Variable cost per pound 12 Fixed cost 13 Total cost 24 15 Volume (lbs) IG 30,000,000 17 18 Best option at 30 million pounds 19 20 21 22 23 Option 1
