Transportation: A Global Supply Chain Perspective
Transportation: A Global Supply Chain Perspective
9th Edition
ISBN: 9781337406642
Author: Robert A. Novack, Brian Gibson, Yoshinori Suzuki, John J. Coyle
Publisher: Cengage Learning
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Chapter 4, Problem 1.3C
Summary Introduction

Case summary:

The case deals with the medium-sized TL carrier Company MW. The firm faces much demand for east bound shipments. However, there is not enough demand for westbound shipments. Hence, the firm provided large price discount for that shipments to capture the demand of the customers. The case further explains the cost at which the firm is providing services. Once the marketing manager of the firm meets Person D, who is his clients in eastbound shipments. He stated that it is not fair that the firm is providing much discounts to westbound shipments and making money from their own loyal clients in east bound shipments.

To determine: Whether the firm should implement the suggestion of Person D.

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PS.53 Brother I.D. Ricks is a faculty member at BYU-Idaho whose grandchildren live in Oklahoma and California. He and his wife would like to visit their grandchildren at least once a year in these states. They currently have one vehicle with well over 100,000 miles on it, so they want to buy a newer vehicle with fewer miles and that gets better gas mileage. They are considering two options: (1) a new subcompact car that would cost $18,750 to purchase or (2) a used sedan that would cost $12,750.They anticipate that the new subcompact would get 37 miles per gallon (combined highway and around town driving) while the sedan would get 26 miles per gallon. Based on their road tripping history they expect to drive 13,000 miles per year. For the purposes of their analysis they are assuming that gas will cost $2.93 per gallon.Question: How many miles would the Ricks need to drive before the cost of these two options would be the same? (Display your answer to the nearest whole number.) (Hint:…
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