Question
You work for a company and you have been asked to provide alternative prices for the movement of non-urgent items by air or sea from
You work for a company and you have been asked to provide alternative prices for the movement of non-urgent items by air or sea from London to New York.
The items together amount to four equal size consignments of 3metres x 2metres x 1metre;
They weigh 0.5 tonnes in total; Oman Air charges $550 weight/measure and use the standard 1:6 ratio in their costings;
The Company charge $100 weight/measure and use the standard 1:1 ratio in the costings.
a) Calculate the cheapest option and show how you achieved this? (10 marks)
b) Calculate how much the consignment would have to weigh for the price of transporting by air to be the same as that by sea? (5 marks)
c) What other considerations would need to be taken into account? (10 marks)
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