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MindTap Business Statistics for Ragsdale's Spreadsheet Modeling & Decision Analysis, 8th Edition, [Instant Access], 2 terms (12 months)
8th Edition
ISBN: 9781337274876
Author: Cliff Ragsdale
Publisher: Cengage Learning US
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Trips Logistics, a third-party logistics firm that provides warehousing and other logistics services, is facing a decision regarding the amount of space to lease for the upcoming three-year period. The general manager has forecast that Trips Logistics will need to handle a demand of 100,000 units for each of the next three years. Historically, Trips Logistics has required 1,000 square feet of warehouse space for every 1,000 units of demand. For the purposes of this discussion, the only cost Trips Logistics faces is the cost for the warehouse. Trips Logistics receives revenue of $1.22 for each unit of demand. The general manager must decide whether to sign a three-year lease or obtain warehousing space on the spot market each year. The three-year lease will cost $1 per square foot per year, and the spot market rate is expected to be $1.20 per square foot per year for each of the three years. Trips Logistics has a discount rate of k = 0.1.
Cargo Loading. You are in charge of loading cargo ships for International Cargo Company (ICC) at a major East Coast port. You have been asked to prepare a loading plan for an ICC freighter bound for Africa. An agricultural commodities dealer would like to transport the following products aboard this ship:Commodity Tons Available Volume per Ton (cu.ft.) Profit per Ton ($)1 4,000 40 702 3,000 25 503 2,000 60 604 1,000 50 80You can elect to load any or all of the available commodities. However, the ship has three cargo holds with the following capacity restrictions:
Cargo Hold Weight Capacity (tons) Volume Capacity (cu.ft.)Forward 3,000 100,000Center 5,000 150,000Rear 2,000 120,000More than one type of commodity can be placed in the same cargo hold. However, because of balance considerations, the weight in the forward cargo hold must be within 10 percent of the weight in the rear cargo hold, and the center cargo hold…
Cargo Loading. You are in charge of loading cargo ships for International Cargo Company (ICC) at a major East Coast port. You have been asked to prepare a loading plan for an ICC freighter bound for Africa. An agricultural commodities dealer would like to transport the following products aboard this ship:Commodity Tons Available Volume per Ton (cu.ft.) Profit per Ton ($)1 4,000 40 702 3,000 25 503 2,000 60 604 1,000 50 80You can elect to load any or all of the available commodities. However, the ship has three cargo holds with the following capacity restrictions:
Cargo Hold Weight Capacity (tons) Volume Capacity (cu.ft.)Forward 3,000 100,000Center 5,000 150,000Rear 2,000 120,000More than one type of commodity can be placed in the same cargo hold. However, because of balance considerations, the weight in the forward cargo hold must be within 10 percent of the weight in the rear cargo hold, and the center cargo hold…
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