TL DC LTL 9 Note: The abbreviation "cwt stands for "hundred weight" or "centum weight", which equals 100 lbs. in U.S. customary units. 10 Points possible Points camed 11 1. Warehousing and Transportation costs Page 1-2018 1-402. Comparing LTL Direct to TL with DC costs 15 12 The process for calcung warehousing and transportation cost is shown in 13 A decision needs to be made on whether to ship from a factory in City X to a new the activity in your online Course Guide titled "PRACTICE Warehousing and 14 distribution center to be established in City Yor to ship directly to customers (C) in the Transportation de sons - Making a decision between two travel 15 service area of the proposed new distribution center Be sure to complete the learning activity prior to completing this problem. 16 Several factors come into play inote numbers are on an annual basis) 17 18 - Estimated annual shipped volume = 10,000 cwt 19 Line haul cost of truckload (TL) shipments to the DC = 540cut 20 Line haul cost of carrying inventory at the DC - 58 cm 21 Linehaul cost of local delivery $16/cwt 2 Line haul cost of less than truckload (LTL) shipments direct to customers = $80W Factory 24 In addition, TL shipments costless per cwt than LTL for the same distance shipped 25 because the line haul costs per mile or kilometer are the same whether or not you fill the 26 truck or container. The more weight you ship per mile, the lower the cost per unit 27 8 Compare the transportation costs from factory to customers by direct shipment or through a 9 local distribution center. Using the data above, complete the calculations and answer the questions below on the best solution to the problem 1 2 Estimated Annual Shipment volume 3 Total annual costs of shipments direct to customer (580icwt) Calculate the value Cost of fulltruckload (FTL) shipments to DC (540/wt) Calculate the value Cost of carrying inventory at DC (icwt) - Calculate the wal value Cost of local delivery (16icwt) - Calculate the annual value Total annual distribution costs to customers through the DC Calculate the anal value LTL Please answer the following two part question: For problem 1 above, which of the two options is the least cost alternative, meaning which of the two options is the most economical or less expensive choice (2 points) AND what is the major reason for its points)? (Be specific in your response. Why is one option more costly than the other option? (Hint: Think about efficiency and line haul costs, as discussed on pages 1-401 and 1-402 of your version 6.2 text) Caband M N 0 B C GH D Complete the yellow Highlighted areas for each problem below if you are working with Excel version 2010 or newer, please click on the "Enable Edihing button on the top of this file to reveal and review the helpful comments in the cells Show your work", or provide your formulas to show how you calculated your answers. (We encourage you to use the functionality of Excel formulas in the cells to show your work.) Note: The abbreviation "we" stands for "hundred weight" or "centum weight", which equals 100 lbs. In U.S. customary units. Point possible Points carried 1. Warehousing and Transportation costs_Page 1:4018 1-402 Comparing LTL Dired to TL with DC costs 15 The process for cabang warehousing and portation cost is shown in A decision needs to be made on whether to ship from a factory in City Xto a new the activity in your online course deed TRACTICE: Warehong and distribution center to be established in City Y. or to ship directly to customers (C) in the Transportation des Manga desen been two sterntved service area of the proposed new distribution center Be sure to complete the learning activity prior to completing this problem, Several factors come into play (note: numbers are on an annual basis) - Estimated annual shipped volume = 10,000 cwt -Line al cost of full-truckload (TL) shipments to the DC = $40 cm -Line haul cost of carrying inventory at the DC - $8/cwt -Line haul cost of local delivery - $16/cwt -Line haul cost of less than truckload (LTL) shipments direct to customers Factory cat TI DC LIL In addition, T shipments cost less per cwt than LTL for the same distance shipped because the line haul costs per mile or kilometer are the same whether or not you fill the truck or container. The more weight you ship per mile, the lower the cost per unit Compare the transportation costs from factory to customers by direct shipment or through a local distribution center. Using the data above, complete the calculations and answer the questions below on the best solution to the problem Estimated Annual Shipment volume- Total annual costs of shipments direct to customer (580/cwt) - Cost of full truck load (FT) shipments to DC (540/cwt) - Cost of carrying inventory at DC (58/cwt) - Cost of local delivery (516/cwt) - Total annual distribution costs to customers through the DC- Calculate the annual S value Calculate the annual sale Calculate the annual S value Calculate the animals value Calcold the annual wave Please answer the following two part question For problem 1 above, which of the two options is the least cost alternative, meaning which of the two options is the most economical or less expensive choice (2 points) AND what is the major reason for it points)? (Be specific in your response. Why is one option more costly than the other option? Clint: Think about efficiency and line haal.costs as discussed on pages 1.401 and 1.402 of your version 6.2 text) Sheet1 D