You are the shipping manager for Domination Manufacturing, an airplane supply manufacturer based in Scranton, PA.
You ship product from Scranton mainly to your distribution warehouse in Charleston, SC. Use Tables 1 and 2 to answer questions 1 - 5.
All shipments are from the manufacturing site in Scranton to the warehouse in Charleston. NOTE: remember you are working in cwt, so watch where your decimal point belongs.
1. How much does it cost to ship 4,200 lbs of Epic jet engines?
2. How much does it cost to ship 450 lbs of Economy large span wings?
3. How much does it cost to ship 6,400 lbs of Kirchoff Oxygen Masks?
4. How much does it cost to ship 4,100 lbs of Substandard Delta Biscotti Cookies?
5. How much does it cost to ship 1,700 lbs of Kirchoff Oxygen Masks?
Table 1: Article Class
|
Item
|
Articles
|
Class - LTI. Shipment
|
Class-TL Shipment
|
Minimum TL Weight
|
|
149500
|
Epic Jet Engine (400 hp)
|
101
|
80
|
4,500 lbs
|
|
149501
|
Substandard Delta Biscotti Cookies (1 hp)
|
70
|
40
|
4,000 lbs
|
|
149550
|
Kirchoff Oxygen Masks
|
55
|
35
|
5,800 lbs
|
|
150000
|
Economy large span wings
|
85
|
66
|
4,500 lbs
|
Table 2: Specific Rates for Shipments from Baltimore MD. to Wilmington, NC.
|
Rate Class
|
< 500 lbs
|
500 to 999 lbs
|
1,000 to 1,999 lbs
|
2,000 to 6,000 lbs
|
|
90 to 105
|
$45.01
|
$38.40
|
$21.10
|
I $18.95
|
|
70 to 89
|
$36.60
|
$27.35
|
$18.22
|
I $13.50
|
|
50 to 69
|
$23.75
|
$16.99
|
$10.15
|
I $8.16
|
|
35 to 49
|
$16.55
|
$11.04
|
$7.05
|
I $438
|
Freight Consolidation
Question a:
Paulson Freight Company has seven (7) separate LTL shipments that need to be moved from Greenville, NC. to a distribution warehouse in Dallas, TX. Using the information below, determine which of two scenarios yield the lowest cost.
-Scenario 1: Send seven trucks from Greenville to Dallas, each with one load.
- Scenario 2: Consolidate shipments at a Greenville warehouse, send all seven loads on one truck, and drop off the loads at their respective customers in Dallas until all shipments have been delivered.
Weight of each shipment: 7,000 lbs.
-Cost to send 1 truck from Greenville to Dallas: $3,500
-Cost to consolidate shipments at Greenville warehouse: $21.00 per hundred-weight
-Cost for local delivery in Dallas, per shipment: $750
Question b:
Paulson Freight Company has just found out that one of the seven shipments will be left in Greenville. Using the same information from Question a, determine which of the two scenarios will now yield the lowest cost.