Question
Gainsborough Traders has orders of 10,000 lbs each of goods for four customers. It charges $15.00 per hundredweight (cwt) (cwt = 100 lbs) to ship
Gainsborough Traders has orders of 10,000 lbs each of goods for four customers. It charges $15.00 per hundredweight (cwt) (cwt = 100 lbs) to ship direct, or $10.00 per cwt for shipments greater than 30,000 lbs. If orders are combined into one shipment, it charges a $400 fee for each stop made. What is the savings from consolidating orders into one shipment?
a. $2000
b. $600
c. $400
d. $200
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Answer If Individual orders are made rate 15 Order size 100 cwt ...
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Operations management in the supply chain decisions and cases
Authors: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
7th edition
77835433, 978-0077835439
