SCM 340 - Section L01 - TRANSPORT MGT (SHAMSUDDOHA M)

Homework 11

[1] Explain each of the following route types (write and attach, drawings may help

(A) Zone Skipping, (B) Merge-in-Transit, and (C) Multi-Stop.

[2] For the following shipments, determine whether you would recommend, based upon cost,to [a] send the shipments as two shipments or [b] as one stop-in-transit shipment.

[A] Show your total costs for each situation. Attach all typed calculations. $___________________________ [a] Multiple Shipment Method $___________________________ [b] Stop-In-Transit Method

[B] Clearly state your recommendation. Recommendation: _____________________________________________

[C] Explain why you chose your recommendation. [i] You have 16,200 pounds of product located at Facility A which is to bedelivered to Facility B

[ii] You have 27,900 pounds of product located at Facility A which is to bedelivered to Facility C A ------------------- B -------------------------- C Regular cost A to B is $6.35/cwt. Regular cost A to C is $11.55/cwt. Regular cost B to C is $7.85/cwt. Stop-Off cost A to C is $9.90/cwt. Stop-Off charge is $125