Operations Management In The Supply Chain Decisions And Cases 7th
7th Edition
ISBN: 9781259718779
Author: Roger G Schroeder And Susan Meyer Goldstein
Publisher: McGraw Hill Education
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Chapter 18, Problem 1P
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To decide: Among the two options that SMC has to make of two shipments from D, TX to LA, Ca
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The Superior Manufacturing Company wants to make two shipments from Dallas, Texas to Los Angeles, California. The first shipment weighs 10,000 pounds and the second shipment weighs 15,000 pounds. The carrier charges $10 per hundredweight (cwt) if the goods are shipped separately and they arrive in two days. If the goods can be consolidated into one shipment the cost would be $8 per cwt to ship them in a truckload lot, but it would cost $500 to consolidate the shipments at the carrier’s warehouse and it would take three days. Which is the lowest cost approach and which approach would you select?
A manufacturer has two shipments to make from Minneapolis to Chicago. Both shipments weigh 8500 pounds. The two shipments can be shipped separately to Chicago at a cost of $2.00 per mile for a total of 409 miles and will take one day for each shipment. The company has a warehouse in Milwaukee where they can consolidate the freight. It would take two LTL shipments at $2.00 per mile to get the freight to Milwaukee for 337 miles and then one full TL shipment from Milwaukee to Chicago at $1.50 per mile for 92 miles. The consolidation cost in Milwaukee is $200 and it takes two days for the trip through Milwaukee. What is the lowest cost to ship the freight and which approach would you select?
A company normally ships to a customer by rail at a cost of $500 per load. The transittime is 14 days. The goods can be shipped by truck for $700 per load and a transit timeof 4 days. If transit inventory cost is $35 per day, what does it cost to ship each way?
Chapter 18 Solutions
Operations Management In The Supply Chain Decisions And Cases 7th
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- In each of the following, name the term defined. Answers are listed at the bottom.1. This is the art and science of obtaining, producing, and distributing material and products in the proper place and in the proper quantities.2. A company that is hired to handle logistics functions.3. A mode of transportation that is the most flexible relative to cost, volume, and speed of delivery.4. When large shipments are broken down directly into smaller shipments for local delivery.5. Sorting goods is the main purpose of this type of warehouse.6. A place where foreign goods can be brought into the United States without being subject to normal customs requirements.arrow_forwardAs a Freight Forwarder, you have been asked to export ten containers of top quality Canadian apples to India. The importer is located in New Delhi. New Delhi is not an ocean port Shipment is by ocean from Canada Consignee address: 1200 Parliament Road, Unit 12, New Delhi India, Global Importers Ten Containers by ocean. 200 cartons in each container of apples Each box: 4 Kg actual weight Dimensions: 12x15x12 cubic inches Calculate: 1)Total Actual Weight: 2)Total Volume Weight: 3)Chargeable Weight: 4)What is the correct Incoterm to be used in this shipment?arrow_forwardWhen you consider motor freight as a mode of carrying goods, it is likely that a large number of goods were shipped via truck. Consider, for example, among the last products you purchased, the majority were delivered via truck to its point of purchase. What characteristics make truck the ideal mode of transportation?arrow_forward
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