Astro save by going with the break-bulk solution

Assignment Help Operation Management

Reference no: EM132267574

Astro Industries of Minneapolis, MN, makes weekly shipments to 12 customers in the Dallas area. Each customer’s order weighs, on average, 1,750 pounds. A direct truck shipment from Minneapolis to Dallas costs $2,500. The maximum load per truck is 30,000 pounds. How much would it cost Astro to make direct, single-order shipments to all of its customers each week? What would the utilization level for the trucks look like? Suppose a Dallas-based warehousing firm has agreed to run a break-bulk warehousing operation for Astro at a cost of $75 per hundred-weight. Local deliveries to each customer would tack on another $150 per customer per week. How much money could Astro save by going with the break-bulk solution? What would the utilization level for truck be in this case? How high would the warehousing cost (currently at $75 per hundred-weight) have to be before break-bulk warehousing is no more attractive than direct shipments?

Reference no: EM132267574

Questions Cloud

Simple random or the systematic sampling method : Identify whether the simple random (R) or the systematic (S) sampling method is used

Change management and project management : What is the difference between change management and project management

Political and religious development of japan : Discuss with your classmates the influence of China on the political and religious development of Japan during the first millennium CE. Debate which

What are some steps the procurement team : What are some steps the procurement team can take to prepare for negotiations?

Astro save by going with the break-bulk solution : How much money could Astro save by going with the break-bulk solution? What would the utilization level for truck be in this case?

List the types of resource risks : List the types of resource risks, describe each one, and define how you would manage each type in risk planning. Share an example of a project

Describe the project characteristics of organization : Describe the four basic types of project organization and describe the project characteristics of each organization in relation to the project manager's authori

Explain what is meant by organization architecture : Explain what is meant by organization architecture. What components are included in a value chain analysis?

Salvage value for this inventory management system : Compute the implied salvage value for this inventory management system.

User Account

All Pages