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need help with c Astro Industries of Minneapolis, Minnesota, makes weekly shipments to 25 customers in the Dallas area. Each customer's order weighs, on average,
need help with c
Astro Industries of Minneapolis, Minnesota, makes weekly shipments to 25 customers in the Dallas area. Each customer's order weighs, on average, 500 pounds. A direct truck shipment from Minneapolis to Dallas costs $1,600. The maximum load per truck is 60,000 pounds. a. The total cost for Astro to make direct, single-order shipments to all of its customers is $40000 per week. (Enter your response as a whole number.) The average truck utilization level for the single-order shipment option is 0.8%. (Enter your response rounded to one decimal place.) b. Suppose a Dallas-based warehousing firm has agreed to run a break-bulk warehousing operation for Astro at a cost of $110 per hundred-weight. Local deliveries to each customer would tack on another $50 per customer per week. The total cost of the break-bulk warehousing option is $16,600 per week. (Enter your response as a whole number.) By going with a break-bulk solution, Astro could save $23400 per week. (Enter your response as a whole number.) c. The warehousing cost would need to be greater than or equal to $ per hundred-weight for the break-bulk option to be no more attractive than direct shipments. (Enter your response rounded to the nearest whole number.)Step by Step Solution
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