A direct truck shipment from los angeles to oakland

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Reference no: EM13748906

1. BossMustang

Part 1: Every week, BossMustang of Oakland, CA receives shipments from ten (10) different suppliers in the Los Angeles area. Each supplier's order weighs, on average, 500 lbs. A direct truck shipment from Los Angeles to Oakland costs $800.

A) Determine how much it costs BossMustang each week to accept direct, single-order shipments from all its suppliers. ( 5 Points )

B) Determine the per-truck utilization assuming each truck is capable of carrying 10,000 lbs.

Part 2: A Los Angeles 3PL has offered to run a consolidation warehouse operation fo BossMustang. The 3PL provider would pick up the shipments from each supplier, process them, and put them on a single truck bound for Oakland. The pick up fee would be $100 per supplier, and the warehousing cost would be $55 per hundred-weight. The direct truck shipment cost would be the same as before, $800.

C) Determine how much it would cost BossMustang each week to use the consolidation warehousing option.

Warehousing fee:
Pick up fee:
Shipping fee:
Total:

D) Determine the per-truck utilization assuming each truck is capable of carrying 10,000 lbs.

Reference no: EM13748906

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