Explanation Calculate the total cost to get the containers. Following table contains information about the Company W: Basic Information Amount ($) Total current volume (CBM) 190,000 Direct shipping percentage 89% Direct ship Volume (CBM) 169,100 Volume of Consolidation center 20,900 ( 190 , 000 − 169 , 100 ) Table (1) Calculation of shipping cost of the company as follows: Shipping cost Particulars Amount Amount Direct Ship by container type (feet) 20 40 Volume (%) 21 79 Volume (CBM) 35,511 ( 21 % of 169 , 100 ) 133,589 ( 79 % of 169 , 100 ) Container capacity used 85% 85% Direct Ship by container centre type (feet) Volume 100% Volume (CBM) 20,900 Container capacity used 96% Container capacity(CBM) 34 67 Container shipped 1,229 1 2,671 2 Shipping Cost per container ($) $480 $600 Shipping cost by container size($) $589,920 ( 1 , 229 × 480 ) $1,602,600 ( 2 , 671 × 600 ) Table (2) The total shipping cost can be calculated as follows: Total shipping cost = 589 , 920 + 1 , 602 , 600 = $

5th Edition

ISBN: 9781260547627

Author: Jacobs

Publisher: MCG

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Question

Chapter 16, Problem 1AE

Summary Introduction

Case Summary: Company W is a supplier of MRO products to businesses in various countries. Company W has its suppliers from different countries which supply through sea route. The shipment is collected in different consolidation centers and then different quality checks are done. The management is trying to make the work of consolidation centers more efficient.

To determine: Compute the total cost to get the containers to Country U without including the U port.

Expert Solution & Answer

Chapter 16 Solutions

OPERATIONS+SUPPLY CHAIN...:CORE >INTL<

Ch. 16 - Prob. 1DQ Ch. 16 - Prob. 2DQ Ch. 16 - Prob. 3DQ Ch. 16 - Prob. 4DQ Ch. 16 - Prob. 5DQ Ch. 16 - Prob. 6DQ Ch. 16 - Prob. 7DQ Ch. 16 - Prob. 8DQ Ch. 16 - Prob. 9DQ Ch. 16 - Prob. 10DQ

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