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LM.97 Each week the ABC Company, from Albuquerque, NM receives 89 separate parcel shipments from a number of different suppliers in the Dallas, TX area. Each parcel shipment from Dallas to Albuquerque costs $118. Alternate Shipping Method A Dallas-based 3PL provider has approached ABC Company with a proposal to run a consolidation operation where they would pick up the supplier shipments each week and load them on to one truck for shipment to Albuquerque. The relative data for this alternative shipping method are as follows: • Local pickup fee = $36 pickup fee • Average weight per supplier shipment = 170 lbs. • Local consolidation fee = $36 per hundred-weight • Consolidated TL shipment from Dallas to Albuquerque = $850 What is the total cost of shipping the separate parcel shipments from the Dallas-area suppliers to the ABC company location in Albuquerque? (Display your answer as a whole number.) Number How much money would ABC Company save to hire the 3PL to pickup the shipments from each supplier and consolidate them into one bulk shipment to Albuquerque? (Display your answer as a whole number.) Number At what number of shipments is the cost the same for the two options? (Display your answer as a whole number.) Number

LM.97 Each week the ABC Company, from Albuquerque, NM receives 89 separate parcel shipments from a number of different suppliers in the Dallas, TX area. Each parcel shipment from Dallas to Albuquerque costs $118. Alternate Shipping Method A Dallas-based 3PL provider has approached ABC Company with a proposal to run a consolidation operation where they would pick up the supplier shipments each week and load them on to one truck for shipment to Albuquerque. The relative data for this alternative shipping method are as follows: • Local pickup fee = $36 pickup fee • Average weight per supplier shipment = 170 lbs. • Local consolidation fee = $36 per hundred-weight • Consolidated TL shipment from Dallas to Albuquerque = $850 What is the total cost of shipping the separate parcel shipments from the Dallas-area suppliers to the ABC company location in Albuquerque? (Display your answer as a whole number.) Number How much money would ABC Company save to hire the 3PL to pickup the shipments from each supplier and consolidate them into one bulk shipment to Albuquerque? (Display your answer as a whole number.) Number At what number of shipments is the cost the same for the two options? (Display your answer as a whole number.) Number

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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LM.97 Each week the ABC Company, from Albuquerque, NM receives 89 separate parcel shipments from a number of different suppliers in the Dallas, TX area. Each parcel shipment from Dallas to Albuquerque costs $118. Alternate Shipping Method A Dallas-based 3PL provider has approached ABC Company with a proposal to run a consolidation operation where they would pick up the supplier shipments each week and load them on to one truck for shipment to Albuquerque. The relative data for this alternative shipping method are as follows: • Local pickup fee = $36 pickup fee Average weight per supplier shipment = 170 lbs. • Local consolidation fee = $36 per hundred-weight • Consolidated TL shipment from Dallas to Albuquerque = $850 %3D What is the total cost of shipping the separate parcel shipments from the Dallas-area suppliers to the ABC company location in Albuquerque? (Display your answer as a whole number.) Number How much money would ABC Company save to hire the 3PL to pickup the shipments from each supplier and consolidate them into one bulk shipment to Albuquerque? (Display your answer as a whole number.) Number At what number of shipments is the cost the same for the two options? (Display your answer as a whole number.) Number
Transcribed Image Text:LM.97 Each week the ABC Company, from Albuquerque, NM receives 89 separate parcel shipments from a number of different suppliers in the Dallas, TX area. Each parcel shipment from Dallas to Albuquerque costs $118. Alternate Shipping Method A Dallas-based 3PL provider has approached ABC Company with a proposal to run a consolidation operation where they would pick up the supplier shipments each week and load them on to one truck for shipment to Albuquerque. The relative data for this alternative shipping method are as follows: • Local pickup fee = $36 pickup fee Average weight per supplier shipment = 170 lbs. • Local consolidation fee = $36 per hundred-weight • Consolidated TL shipment from Dallas to Albuquerque = $850 %3D What is the total cost of shipping the separate parcel shipments from the Dallas-area suppliers to the ABC company location in Albuquerque? (Display your answer as a whole number.) Number How much money would ABC Company save to hire the 3PL to pickup the shipments from each supplier and consolidate them into one bulk shipment to Albuquerque? (Display your answer as a whole number.) Number At what number of shipments is the cost the same for the two options? (Display your answer as a whole number.) Number
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