A supplier ships goods from Richmond, VA to three market places in 3 cities (Chicago, IL; Athens St. Luis, MO). The supplier can ship every day, every other day, or every third day. There is a penalty of $0.30/cwt for each day delayed. Consolidating shipments allows for lower transportation costs from larger loads, but incurs pena costs due to the delay. Shipment City Chicago, IL Athens, GA St. Luis, MO Total Transportation Rate (S/cwt) Weight/day 18,000 lb (180 cwt) 15,000 lb (150 cwt) 12,000 lb (120 cwt) 45,000 lb = 450 cwt Find what is the cost for the following: Shipping Every Day Shipping on the alternate Day (every two days) LTL < 50,000 lb 1.50 1.35 2.00 TL > 50000 lb 1.25 1.00 1.50
A supplier ships goods from Richmond, VA to three market places in 3 cities (Chicago, IL; Athens St. Luis, MO). The supplier can ship every day, every other day, or every third day. There is a penalty of $0.30/cwt for each day delayed. Consolidating shipments allows for lower transportation costs from larger loads, but incurs pena costs due to the delay. Shipment City Chicago, IL Athens, GA St. Luis, MO Total Transportation Rate (S/cwt) Weight/day 18,000 lb (180 cwt) 15,000 lb (150 cwt) 12,000 lb (120 cwt) 45,000 lb = 450 cwt Find what is the cost for the following: Shipping Every Day Shipping on the alternate Day (every two days) LTL < 50,000 lb 1.50 1.35 2.00 TL > 50000 lb 1.25 1.00 1.50
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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![A supplier ships goods from Richmond, VA to three market places in 3 cities (Chicago, IL; Athens, GA;
St. Luis, MO). The supplier can ship every day, every other day, or every third day.
There is a penalty of $0.30/cwt for each day delayed.
Consolidating shipments allows for lower transportation costs from larger loads, but incurs penalty
costs due to the delay.
Transportation Rate
(S/cwt)
Shipment
City
Weight/day
LTL <
TL >
50,000 lb
50000 lb
Chicago, IL
18,000 lb (180 cwt)
1.50
1.25
Athens, GA
15,000 lb (150 cwt)
1.35
1.00
St. Luis, MO
12,000 lb (120 cwt)
2.00
1.50
Total
45,000 Ib = 450 cwt
Find what is the cost for the following:
Shipping Every Day
Shipping on the alternate Day (every two days)
Shipping every three Day](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F39b8516a-3c7c-4177-9288-91bb885f41d7%2Fc3382428-e90f-497e-bc3c-58cac99eec56%2Fd5hy1i5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A supplier ships goods from Richmond, VA to three market places in 3 cities (Chicago, IL; Athens, GA;
St. Luis, MO). The supplier can ship every day, every other day, or every third day.
There is a penalty of $0.30/cwt for each day delayed.
Consolidating shipments allows for lower transportation costs from larger loads, but incurs penalty
costs due to the delay.
Transportation Rate
(S/cwt)
Shipment
City
Weight/day
LTL <
TL >
50,000 lb
50000 lb
Chicago, IL
18,000 lb (180 cwt)
1.50
1.25
Athens, GA
15,000 lb (150 cwt)
1.35
1.00
St. Luis, MO
12,000 lb (120 cwt)
2.00
1.50
Total
45,000 Ib = 450 cwt
Find what is the cost for the following:
Shipping Every Day
Shipping on the alternate Day (every two days)
Shipping every three Day
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