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One frequent customer is located in Miaml, FL LTL shipments from Atlanta to Miami cost $900 for a 5,000 -pound shipment. A new employee suggests
One frequent customer is located in Miaml, FL LTL shipments from Atlanta to Miami cost $900 for a 5,000 -pound shipment. A new employee suggests that the company consider establishing a breakbulk facility in Jacksonville. FL to serve customers in the South region. Including the Miami customer. The cost of breaking bulk in Jacksonvile is estimated to be $1.200 per truckjoad shipment received. A truckload shipment has capacity for up to 50,000 pounds (10 typical orders). The truckload carrier charges by the mile. The distance between Atlanta and Jacksonville is 383 miles, The carrier charges a rate of $1.95 per mile. plus a fuel surcharge of $0.25 per mile. An LTL. shipment of 5,000 pounds from Jacksonville to Miami is 5500 Would adding the breakbulk operation make sense from a cost standpoint? Show your calculations and coinpare
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