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Question 6. Transit Privilege/Stop-Off Service You operate a major distribution center in Seattle, WA. A customer in Boise, ID., a customer in Salt Lake City,
Question 6. Transit Privilege/Stop-Off Service You operate a major distribution center in Seattle, WA. A customer in Boise, ID., a customer in Salt Lake City, UT. a customer in Denver, CO., and a customer in Oklahoma City, OK. have all ordered a large amount of material from you. It will require that you ship 11,000 pounds of material from your Seattle DC to Boise, 10,000 pounds of material to Salt Lake City, 8,000 pounds to Denver, and 13,000 to Oklahoma City. Using the following rates, determine the cost of three separate shipments vs the cost of a single combined shipment using a stop-off privilege. Which option is preferable? Rates per lb. LTL TL Min. Weight for TL Seattle to Boise $0.22 $0.10 40,000 lbs. Seattle to Salt Lake City $0.251 $0.140 40,000 lbs. Seattle to Denver $0.288 $0.183 40,000 lbs. Seattle to Oklahoma City $0.32 $0.20 40,000 lbs Stop-off privilege is $650 per stop. There is no stop-off charge for the last stop. Option 1: Cost of 4 separate shipments: Option 2: Cost of combined shipment with stop-offs: (NOTE: assume route to be Seattle - Boise - Salt Lake City - Denver - Oklahoma City)
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