Johannesburg turns out to be a challenging city to service, because
many of the auto dealers are 60 to 70 km outside the city, while the port
where the parts come in (Durban) is 569 kilometers (km) away.
Your boss has decided to add a charge for domestic transportation and delivery.
This charge is supposed to equal the average cost per plug for bringing
the plugs from Durban to Johannesburg on a large truck,
transferring the goods from the large truck to a smaller delivery vehicle,
and making the final delivery. Equipment is fully depreciated,
so its cost can be ignored.
The relevant costs, fuel economy, and times are
Time at Durban for pickup			2	hours
Time from Durban to Johannesburg			7	hours
Load factor, Durban to Johannesburg			50000	plugs per truck
Fuel economy, Durban to Johannesburg			5	km per liter
Transfer productivity			5000	plugs per hour
Number of Delivery Stops per route			15	stops per day
Average size of delivery			50	plugs per stop
Time spent delivering per route			8	hours per route
Fuel economy, delivery vehicle			6	km per liter
Average length of daily route			225	km
Hourly wage			$3.75	per hour
Fuel price			$1.35	per liter
HOW MUCH SHOULD YOUR COMPANY ADD
TO COVER THE DOMESTIC TRANSPORTATION COST?