The table below provides shipping rates for packages using UPS next day air or ground service options. The rates vary according to both the weight of the package and the distance of the shipment (larger numbered zones are farther away). Note that the zone number also indicates the number of days required to deliver a package using ground service. A transportation manager must ship orders of materials weighing six pounds each to destinations in each of the seven zones listed in the table. The daily inventory holding rate is $9.50 per day for all orders. The manager has decided to use next day air service for-all shipments. Table of Shipping Rates Next Day Service Weight Domestic Zones - Transit Time in Days 1 3 4 6. 1 Lbs. $ 16.25 $ 17.25 $ 19.00 $ 20.00 $ 21.25 $ 22.00 $ 22.75 $ 23.75 $ 24.50 $ 25.25 $ 26.25 $ 27.00 $ 27.75 $ 28.50 $ 29.50 $ 19.25 $ 20.75 $ 21.75 $ 22.75 $ 24.25 $ 25.25 $ 27.00 $ 28.25 $ 29.75 $ 31.00 $ 32.50 $ 33.50 $ 34.75 $ 36.00 $ 37.50 $ 22.75 $ 25.50 $ 28.25 $ 31.00 $ 33.50 $ 36.00 $ 38.50 $ 41.00 $ 43.75 $ 46.25 $ 48.75 $ 51.25 $ 53.75 $ 55.75 $ 58.00 $ 24.75 $ 27.75 $ 30.50 $ 33.50 $ 36.25 $ 39.00 $ 42.00 $ 44.75 $ 47.50 $ 50.25 $ 52.75 $ 55.50 $ 58.00 $ 60.50 $ 63.00 $ 27.00 $ 30.25 $ 33.50 $ 36.50 $ 39.50 $ 42.75 $ 46.00 $ 49.25 $ 28.25 $ 31.25 $ 34.75 $ 37.75 $ 40.75 $ 44.00 $ 47.00 $ 50.25 $ 53.75 $ 56.75 $ 60.00 $ 63.00 $ 29.00 $ 32.00 $ 35.50 3. 4. $38.50 $ 41.75 $ 45.00 $ 48.25 $ 51.25 $ 54.50 $ 57.75 $ 60.75 $ 63.75 $ 66.50 $ 69.25 $ 72.00 6. 8 6. $52.50 $ 55.25 $ 58.00 $ 60.75 $ 63.25 $ 65.75 $ 68.25 10 11 12 13 $65.75 14 $ 68.50 $ 70.75 15

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section6.5: Set-covering And Location-assignment Models
Problem 35P
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We are supposed to calculate the additional shipping and transit inventory costs using the air and ground transportations. (Round your answer to 2 decimal places). I am seeking assistance in zones 1-7. I have 1 done and thought I had the formula for the rest but I am struggling.
The table below provides shipping rates for packages using UPS next day air or ground service options. The rates vary according to
both the weight of the package and the distance of the shipment (larger numbered zones are farther away). Note that the zone
number also indicates the number of days required to deliver a package using ground service. A transportation manager must ship
orders of materials weighing six pounds each to destinations in each of the seven zones listed in the table. The daily inventory holding
rate is $9.50 per day for all orders. The manager has decided to use next day air service for-all shipments.
Table of Shipping Rates
Next Day
Service
Weight
Domestic Zones - Transit Time in Days
2
5.
1 Lbs.
$ 16.25
$ 17.25
$ 19.00
$ 20.00
$ 21.25
$ 22.00
$ 22.75
$ 23.75
$ 24.50
$ 25.25
$ 26.25
$ 27.00
$ 27.75
$ 28.50
$ 29.50
$ 19.25
$ 20.75
$ 21.75
$ 22.75
$ 24.25
$ 25.25
$ 27.00
$ 28.25
$ 29.75
$ 31.00
$ 32.50
$ 33.50
$ 34.75
$ 36.00
$ 37.50
$ 22.75
$ 25.50
$ 28.25
$ 31.00
$ 33.50
$ 36.00
$ 38.50
$ 41.00
$ 43.75
$ 46.25
$ 48.75
$ 51.25
$ 53.75
$ 55.75
$ 58.00
$ 24.75
$ 27.75
$ 30.50
$ 33.50
$ 36.25
$ 39.00
$ 42.00
$ 44.75
$ 47.50
$ 50.25
$ 52.75
$ 55.50
$ 58.00
$ 60.50
$ 63.00
$ 27.00
$ 30.25
$ 33.50
$ 36.50
$ 39.50
$ 42.75
$ 46.00
$ 49.25
$ 52.50
$ 55.25
$ 58.00
$ 60.75
$ 63.25
$ 65.75
$ 68.25
$28.25
$ 31.25
$ 34.75
$ 37.75
$ 40.75
$ 44.00
$ 47.00
$ 50.25
$ 53.75
$ 56.75
$ 60.00
$ 63.00
$ 29.00
$ 32.00
$ 35.50
$ 38.50
$ 41.75
$ 45.00
$ 48.25
$ 51.25
$ 54.50
$ 57.75
$ 60.75
$ 63.75
$ 66.50
$ 69.25
$ 72.00
4
5
6.
7.
9
10
11
12
13
$65.75
$ 68.50
$ 70.75
14
15
Transcribed Image Text:The table below provides shipping rates for packages using UPS next day air or ground service options. The rates vary according to both the weight of the package and the distance of the shipment (larger numbered zones are farther away). Note that the zone number also indicates the number of days required to deliver a package using ground service. A transportation manager must ship orders of materials weighing six pounds each to destinations in each of the seven zones listed in the table. The daily inventory holding rate is $9.50 per day for all orders. The manager has decided to use next day air service for-all shipments. Table of Shipping Rates Next Day Service Weight Domestic Zones - Transit Time in Days 2 5. 1 Lbs. $ 16.25 $ 17.25 $ 19.00 $ 20.00 $ 21.25 $ 22.00 $ 22.75 $ 23.75 $ 24.50 $ 25.25 $ 26.25 $ 27.00 $ 27.75 $ 28.50 $ 29.50 $ 19.25 $ 20.75 $ 21.75 $ 22.75 $ 24.25 $ 25.25 $ 27.00 $ 28.25 $ 29.75 $ 31.00 $ 32.50 $ 33.50 $ 34.75 $ 36.00 $ 37.50 $ 22.75 $ 25.50 $ 28.25 $ 31.00 $ 33.50 $ 36.00 $ 38.50 $ 41.00 $ 43.75 $ 46.25 $ 48.75 $ 51.25 $ 53.75 $ 55.75 $ 58.00 $ 24.75 $ 27.75 $ 30.50 $ 33.50 $ 36.25 $ 39.00 $ 42.00 $ 44.75 $ 47.50 $ 50.25 $ 52.75 $ 55.50 $ 58.00 $ 60.50 $ 63.00 $ 27.00 $ 30.25 $ 33.50 $ 36.50 $ 39.50 $ 42.75 $ 46.00 $ 49.25 $ 52.50 $ 55.25 $ 58.00 $ 60.75 $ 63.25 $ 65.75 $ 68.25 $28.25 $ 31.25 $ 34.75 $ 37.75 $ 40.75 $ 44.00 $ 47.00 $ 50.25 $ 53.75 $ 56.75 $ 60.00 $ 63.00 $ 29.00 $ 32.00 $ 35.50 $ 38.50 $ 41.75 $ 45.00 $ 48.25 $ 51.25 $ 54.50 $ 57.75 $ 60.75 $ 63.75 $ 66.50 $ 69.25 $ 72.00 4 5 6. 7. 9 10 11 12 13 $65.75 $ 68.50 $ 70.75 14 15
Ground
Service
Weight
Domestic Zones - Transit Time in Days
2
3
4
5.
2$
$
6.
$ 5.70
$ 6.40
%$4
%24
%24
%24
$ 8.35
$ 8.75
$ 9.25
1 Lbs.
2.
$ 4.75
$ 4.85
$ 5.00
$ 5.15
$ 5.40
$ 5.55
$ 5.75
$ 6.00
$ 4.90
$ 5.15
$ 5.40
$ 5.25
$ 5.65
$ 6.00
$ 6.30
$ 6.60
$ 6.75
$ 6.90
$ 7.10
$ 7.25
$ 7.40
$ 7.55
$ 7.70
$ 7.85
$ 8.00
$ 8.15
$ 5.35
$ 5.80
$ 6.25
$ 6.60
$ 6.95
$ 7. 20
$ 7.45
$ 7.60
$ 7.80
$ 8.00
$ 8. 25
$ 8.45
$ 8.65
5.65
$
$ 5.85
$ 6.25
$.
$ 6.80
6.70
6.90
7.55
$ 5.60
$ 5.80
$ 6.00
$ 6.15
$ 6.35
$ 6.55
$ 6.70
$ 6.90
$ 7.10
$ 7.35
$ 7.55
$ 7.80
4
$ 7.10
$ 7.40
$ 7.65
7.30
$4
$4
24
8.05
5
7.75
8.55
8.05
8.85
7.95
9.25
8.
$ 8.25
$4
$
*
$ 6.20
$ 6.40
$ 6.60
$ 6.80
$ 7.00
$ 7.15
$ 7.35
$4
$ 10.55
$ 11.25
$ 12.05
$ 12.95
$ 13.80
$ 14.65
9.90
6.
$ 8.45
$ 8.80
$4
$ 9.60
$4
$ 9.90
10
$
$ 10.60
$ 11.35
$ 12.05
$ 12.75
$ 13.45
11
9.20
12
$4
$ 10.05
$ 10.60
$ 11.15
13
$
14
$ 8.85
$ 9.05
15
$ 15.55
a. Calculate the additional shipping and transit inventory cost using the air and ground transportations. (Negative answers should be
indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal
places.)
Zone (days to deliver)
Additional in-transit inventory cost to ground ship (based on days in-transit)
3
4
6
0.00 $
9.50 $
19.00 $
2$
28.50 $
38.00 S
47.50
Total additional cost to air ship
16.45 $
28.75
Transcribed Image Text:Ground Service Weight Domestic Zones - Transit Time in Days 2 3 4 5. 2$ $ 6. $ 5.70 $ 6.40 %$4 %24 %24 %24 $ 8.35 $ 8.75 $ 9.25 1 Lbs. 2. $ 4.75 $ 4.85 $ 5.00 $ 5.15 $ 5.40 $ 5.55 $ 5.75 $ 6.00 $ 4.90 $ 5.15 $ 5.40 $ 5.25 $ 5.65 $ 6.00 $ 6.30 $ 6.60 $ 6.75 $ 6.90 $ 7.10 $ 7.25 $ 7.40 $ 7.55 $ 7.70 $ 7.85 $ 8.00 $ 8.15 $ 5.35 $ 5.80 $ 6.25 $ 6.60 $ 6.95 $ 7. 20 $ 7.45 $ 7.60 $ 7.80 $ 8.00 $ 8. 25 $ 8.45 $ 8.65 5.65 $ $ 5.85 $ 6.25 $. $ 6.80 6.70 6.90 7.55 $ 5.60 $ 5.80 $ 6.00 $ 6.15 $ 6.35 $ 6.55 $ 6.70 $ 6.90 $ 7.10 $ 7.35 $ 7.55 $ 7.80 4 $ 7.10 $ 7.40 $ 7.65 7.30 $4 $4 24 8.05 5 7.75 8.55 8.05 8.85 7.95 9.25 8. $ 8.25 $4 $ * $ 6.20 $ 6.40 $ 6.60 $ 6.80 $ 7.00 $ 7.15 $ 7.35 $4 $ 10.55 $ 11.25 $ 12.05 $ 12.95 $ 13.80 $ 14.65 9.90 6. $ 8.45 $ 8.80 $4 $ 9.60 $4 $ 9.90 10 $ $ 10.60 $ 11.35 $ 12.05 $ 12.75 $ 13.45 11 9.20 12 $4 $ 10.05 $ 10.60 $ 11.15 13 $ 14 $ 8.85 $ 9.05 15 $ 15.55 a. Calculate the additional shipping and transit inventory cost using the air and ground transportations. (Negative answers should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.) Zone (days to deliver) Additional in-transit inventory cost to ground ship (based on days in-transit) 3 4 6 0.00 $ 9.50 $ 19.00 $ 2$ 28.50 $ 38.00 S 47.50 Total additional cost to air ship 16.45 $ 28.75
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