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Which mode of transport do you recommend and why

Which mode of transport do you recommend and why

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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Which mode of transport do you recommend and why? One year = 365 days.

1) A power plant in California uses MRO material at the rate of 1,000 pounds each day. The MRO material comes from Chicago and costs $10 per pound (Ex works). Holding costs at the power plant and in-transit are 25 percent annually cach. Transportation choices are available as follows: • Train o Lead time - 15 days o Carload (100,000 pounds) at $400 per carload o Full train (70 cars) at S15,000 per train • Truck o Lead time = 4 days o Large TL (60,000 pounds) for $2,600 per truck • Piggyback o Train Carload (100,000 pounds) from Chicago to Colorado at $250 per Carload • Lead time = 8 days o Large TL (up to 60,000 pounds) from Colorado to California for S1,200 per truck • Lead time - 2 days • There are plenty of trucks available for shipping to Chicago at Colorado o Order quantity arriving at Califormia depends on the shipment at the first link.
Transcribed Image Text:1) A power plant in California uses MRO material at the rate of 1,000 pounds each day. The MRO material comes from Chicago and costs $10 per pound (Ex works). Holding costs at the power plant and in-transit are 25 percent annually cach. Transportation choices are available as follows: • Train o Lead time - 15 days o Carload (100,000 pounds) at $400 per carload o Full train (70 cars) at S15,000 per train • Truck o Lead time = 4 days o Large TL (60,000 pounds) for $2,600 per truck • Piggyback o Train Carload (100,000 pounds) from Chicago to Colorado at $250 per Carload • Lead time = 8 days o Large TL (up to 60,000 pounds) from Colorado to California for S1,200 per truck • Lead time - 2 days • There are plenty of trucks available for shipping to Chicago at Colorado o Order quantity arriving at Califormia depends on the shipment at the first link.
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