Your wonderful procurement department just bought 5616 cases of abrasives discs from China and you need to work out getting them to your DC.

• The terms of the procurement called for the 5616 cases to be floor loaded into two 40 high cube ISO (sea) 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 China is $50 per container.
• The containers will be shipped to the Port of Los Angeles and then trucked to your DC located in Phoenix Arizona (385 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 10 x 12 by 12 in height and weigh 11 lbs. each
• The 48 X 40 pallets weigh 40 lbs. each and should be assumed to be 6 in height
• The total charge for shipping a 40 high cube container from China to LA is $2400 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 high cube container from China to LA is $1440 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 about: Length 52 6, Width 8 3, Height 9 2 1/4
• Cost of trucking to Phoenix (all inclusive) $2.45 / mile per truck
• Time needed to palletize the 5616 cases, 16 person-hours Cost per person hour in China $4, in Los Angles $18, Phoenix $13
• If you palletize the load in Los Angles you can shift the load into a 53 semi-truck trailer
• Total gross cargo weight 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 half the trucking cost but it will take twice as long.

In this assignment you are to:

1. Calculate the total cost of the shipment under each of the three following conditions
   1. The load is palletized in China
   2. The load is palletized in Los Angles
   3. The load is palletized in Phoenix

Note: palletizing the load may change the amount you can load into a container or trailer

2. Identify the number of cases loaded into each pallet and the total pallet weight
3. The gross weight (including pallets, if applicable) loaded into each container and or truck trailer used in the shipments.