Candace Button has just taken a job with Vivettes Importers in New York. Vivettes makes daily shipments
Question:
Candace Button has just taken a job with Vivette’s Importers in New York. Vivette’s makes daily shipments to customers in the Boston area. However, the number of customers, shipment sizes, and associated transportation and warehousing costs can vary considerably from one day to the next.
Candace would like to put together a spreadsheet that would allow her to quickly determine whether or not she should consolidate shipments, based on changing demand and cost information. To test the new spreadsheet, Candace has the following information for the next week:
Number of customers: 15 Average shipment size: 1400 pounds Truck capacity: 20,000 pounds Truck costs: $500 per truck going to Boston For consolidated shipments:
Warehousing cost: $25 per hundred-weight Delivery cost: $100 per customer
Step by Step Answer:
Introduction To Operations And Supply Chain Management
ISBN: 9780131791039
2nd Edition
Authors: Cecil C. Bozarth, Robert B. Handfield