Question 6. Transit Privilege/Stop-Off Service You operate a major distribution center in Seattle, WA. A customer in Boise, ID., a customer in Salt Lake City, UT. a customer in Denver, CO., and a customer in Oklahoma City, OK. have all ordered a large amount of material from you. It will require that you ship 11,000 pounds of material from your Seattle DC to Boise, 10,000 pounds of material to Salt Lake City, 8,000 pounds to Denver, and 13,000 to Oklahoma City. Using the following rates, determine the cost of three separate shipments vs the cost of a single combined shipment using a stop-off privilege. Which option is preferable? Rates per Ib. LTL Min. Weight for TL TL $0.22 $0.251 $0.288 $0.32 $0.10 $0.140 $0.183 $0.20 40,000 lbs. 40,000 lbs. 40,000 lbs. 40,000 lbs Seattle to Boise Seattle to Salt Lake City Seattle to Denver Seattle to Oklahoma City Stop-off privilege is $650 per stop. There is no stop-off charge for the last stop. Option 1: Cost of 4 separate shipments:
Question 6. Transit Privilege/Stop-Off Service You operate a major distribution center in Seattle, WA. A customer in Boise, ID., a customer in Salt Lake City, UT. a customer in Denver, CO., and a customer in Oklahoma City, OK. have all ordered a large amount of material from you. It will require that you ship 11,000 pounds of material from your Seattle DC to Boise, 10,000 pounds of material to Salt Lake City, 8,000 pounds to Denver, and 13,000 to Oklahoma City. Using the following rates, determine the cost of three separate shipments vs the cost of a single combined shipment using a stop-off privilege. Which option is preferable? Rates per Ib. LTL Min. Weight for TL TL $0.22 $0.251 $0.288 $0.32 $0.10 $0.140 $0.183 $0.20 40,000 lbs. 40,000 lbs. 40,000 lbs. 40,000 lbs Seattle to Boise Seattle to Salt Lake City Seattle to Denver Seattle to Oklahoma City Stop-off privilege is $650 per stop. There is no stop-off charge for the last stop. Option 1: Cost of 4 separate shipments:
Practical Management Science
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Transcribed Image Text:Question 6. Transit Privilege/Stop-Off Service
You operate a major distribution center in Seattle, WA. A customer in Boise, ID., a customer in Salt Lake City,
UT. a customer in Denver, CO., and a customer in Oklahoma City, OK. have all ordered a large amount of
material from you. It will require that you ship 11,000 pounds of material from your Seattle DC to Boise,
10,000 pounds of material to Salt Lake City, 8,000 pounds to Denver, and 13,000 to Oklahoma City. Using the
following rates, determine the cost of three separate shipments vs the cost of a single combined shipment using
a stop-off privilege. Which option is preferable?
Rates per Ib.
LTL
Min. Weight for TL
TL
$0.22
$0.251
$0.288
$0.32
$0.10
$0.140
$0.183
$0.20
40,000 lbs.
40,000 lbs.
40,000 lbs.
40,000 lbs
Seattle to Boise
Seattle to Salt Lake City
Seattle to Denver
Seattle to Oklahoma City
Stop-off privilege is $650 per stop. There is no stop-off charge for the last stop.
Option 1: Cost of 4 separate shipments:
Option 2: Cost of combined shipment with stop-offs:
(NOTE: assume route to be Seattle – Boise – Salt Lake City – Denver – Oklahoma City).
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