60 separate LTL shipments from a number of different suppliers in
the Dallas, TX area. Each parcel shipment from Dallas to
Albuquerque costs $111.
Alternate Shipping Method
A Dallas-based 3PL provider has approached ABC Company with a
proposal to run a consolidation operation where they would pick up
the supplier shipments each week and load them on to one truck for
shipment to Albuquerque. The relative data for this alternative
shipping method are as follows:
Local pickup fee = $32 pickup fee
Average weight per supplier shipment = 138 lbs.
Local consolidation fee = $42 per hundred-weight
Consolidated TL shipment from Dallas to Albuquerque = $997
What is the total cost of shipping the separate parcel shipments
from the Dallas-area suppliers to the ABC company location in
Albuquerque? (Display your answer as a whole
number.)
R=
How much money would ABC Company save
to hire the 3PL to pickup the shipments from each supplier and
consolidate them into one bulk shipment to Albuquerque? (Display
your answer as a whole number.)
R=
At what cost for local pickup does the cost of the two options
become the same? (Display your answer to two
decimal places.)
R=
