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This is all the information I have Your procurement department just bought 11,000 cases of abrasive discs from South Korea and you need to work
This is all the information I have
Your procurement department just bought 11,000 cases of abrasive discs from South Korea and you need to work out getting them to your DC.
- The terms of the procurement state that cases will be floor loaded into containers and you will pay the transport costs from that point.
- If you wish to change this to a palletized load you will need to pay the cost of palletizing the load.
- The cost of draying (trucking) a container (size does not matter) to the seaport in South Korea is $200 per container.
- The containers will be shipped to the Port of Los Angeles and then moved by truck or intermodal rail to your DC located in Phoenix Arizona (420 miles)
- When the shipment arrives at the DC the cases need to have been or must be loaded onto 48" x 40" pallets with a total height not to exceed 54" with a total weight not to exceed 750 lbs.
- The cases themselves are 8" x 10" by 8" in height and weigh 6 lbs. each
- The 48" X 40" pallets weigh 22 lbs. each and are 6" in height
- The total charge for shipping a 40' high cube container from South Korea to LA is $6500
- The interior dimensions of the 40" high cube container are:
- Length 39' 5 3/8", Width 7' 11 3/4", Height 8' 10"
- Weight capacity is 63,000 LBS
- The total charge for shipping a 20' container from South Korea to LA is $4300
- The interior dimensions of the 20' container are:
- Length 19' 4 1/8", Width 7' 10 1/4", Height 7' 10 1/4"
- Weight capacity is 63,000 LBS
- The interior dimensions of a 53' semi-truck trailer are:
- Length 52' 6", Width 8' 3", Height 9' 2 1/4"
- Cost of trucking to Phoenix (all inclusive) $2.84 / mile per truck
- Time needed to palletize the 11,000 cases is 20 person-hours
- Labor cost per person hour in South Korea $15, in Los Angeles $22, Phoenix $17
- If you palletize the load in Los Angeles, you can shift the load into a 53' semi-truck trailer
- Total gross cargo weight per trailer or container cannot exceed 45,000 lbs. while being moved by truck in the U.S. (note: there are exceptions to this general statement, however we will not address them in this assignment)
- If you wish to use inter-modal rail from LA to Phoenix you can assume the cost will be 30% less than the cost of trucking, but it will take twice as long.
In this assignment you are to:
1. Calculate the total, most economical, costs of the shipments for the following three scenarios:
- The load is palletized in South Korea
- The load is palletized in Los Angeles
- The load is palletized in Phoenix
2. Show all your calculations including:
- Number of cases and total weight of the floor loaded containers
- Number of cases loaded onto each pallet, total pallet weight, and the number of pallets per container if the shipments are palletized
- The gross weights (including pallets, if applicable) loaded into each container and or truck trailer used in the shipments.
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