PLEASE HELP IM SO LOST

HW #5

Fall 2016

Operations and SCM 3123 Section 6 F2F Transportation

Homework Assignment due: Tuesday, 11/22/16, 11:50 pm Truck Rate Determination

You are the shipping manager for Division Manufacturing, a small water craft manufacturer based in Giddings, TX. You ship product from Giddings to your primary distribution warehouse in Wilmington, NC. Use Tables 1 and 2 to answer questions 1 - 5. All shipments are from the manufacturing site in Giddings to the warehouse in Wilmington.

NOTE: remember you are working in hundred weight (cwt), so watch where your decimal point belongs. HINT: remember bump weight!

Determine the lowest cost possible to ship 2,300 lbs of Deluxe outboard motors.

Determine the lowest cost possible to ship 400 lbs of Economy small craft anchors.

Determine the lowest cost possible to ship 6,000 lbs of Runabout life vests.

Determine the lowest cost possible to ship 4,100 lbs of Standard outboard motors.

Determine the lowest cost possible to ship 1,800 lbs of Runabout life vests.

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HW #5 Fall 2016 Table 1: Article Class

Item	Articles	Class - LTL Shipment	Class TL Shipment	Minimum TL Weight
149500	Deluxe outboard motor (20 hp)	101	80	3,500 lbs
149501	Standard outboard motor (9.8 hp)	70	40	4,000 lbs
149550	Runabout life vest	55	35	5,800 lbs
150000	Economy anchor, small craft	85	66	4,500 lbs

Table 2: Specific Rates for Shipments from Giddings, TX. to Wilmington, NC.

Rate Class	< 500 lbs	500 to 999 lbs	1,000 to 1,999 lbs	2,000 to 6,000 lbs
90 to 105	$45.01	$38.40	$21.10	$17.95
70 to 89	$29.99	$22.00	$18.22	$13.50
50 to 69	$23.75	$16.99	$13.66	$9.12
35 to 49	$16.55	$11.04	$7.05	$6.27

Freight Consolidation

Question 6a:

Rocky Mountain Freight Company has four (4) separate LTL shipments that need to be moved from Salt Lake City, UT. to four different customers in Columbus, OH. Using the information below, determine the cost of both scenarios. Which scenario yields the lowest cost?

Scenario 1: Send four trucks from Salt Lake to Columbus, each with one load, to their respective customers.

Scenario 2: Consolidate shipments at a Salt Lake warehouse, send all four loads on one truck, and drop off the loads at their respective customers in Columbus until all shipments have been delivered.

Weight of each shipment: 8,000 lbs. Cost per truck from Salt Lake City to Columbus: $2,400 Cost to consolidate shipments at the Salt Lake City warehouse: $14.00 per hundred-weight Cost per drop-off load in Columbus (only if one truck is used to drop off all shipments): $600

Question 6b:

Rocky Mountain Freight Company has just found out that one of the customers cancelled their order. Using the same cost information from Question 6a, determine the new cost of both scenarios and again, which of the two scenarios yields the lowest cost.

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