What are the total costs of delivering style shaded

Assignment Help Operation Management

Reference no: EM131724981

Located 60 miles from Chicago Illinois, the let there be light lamp shade company, which designs and builds custom lamp shapes and lamp globes, historically derived all of its sales from customers in the united states and Canada. Recently, an architectural firm that often contracted with the let there be light was commissioned to design several large public buildings, and the peoples republic of China. These buildings would require let there be light to supply 8100 identical lights, and the relevant terms of sales would include delivery to the poor of Shanghai where the architectural firm would take possession. Let there be light designed a prototype cylindrical lamp shade that measured 11 inches high and 11 inches in diameter and would be packed into cartons that measured 12 inches by 12 inches by 12 inches. We refer to these shades as style A. The style A lamp shades would cost 4 dollars each to manufacture and weighed 9 pounds each; each carton costs 60 cents and weighed 1 pound, meaning that each style A Carton weighed 10 pounds. In an effort to reduce packaging costs and the companies commitment to environmental logistics, let there be light also developed 2 prototype lamp shades (referred to style B and C) ( in the shape of a cone rather than a cylinder. One advantage to Conical shades is that they can be nested, that is, stacked in side of eachother, meaning that, unlike style, multiple lamp shades can be packed into a single carton. Moreover, the nested shades would also help protect each other, although a slight bit of padding would be needed between the nested shades. The production costs for the Conical lamp shades would be higher than those of the cylindrical shades. Let there be light determined that each style B lamp shade would cost 4.50 cents to manufacture and could be shipped nested, with 6 lamp shades per carton. The carton lamp shades were 12 inches by 12 inches by 40 inches, and when holding 6 shades, the carton weighed 62 pounds. Each style B carton cost 2 dollars, and this included padding between the shades each style C lamp shade would cost 5 dollars to make and could be shipped nested, with 10 lamp shades per carton. The carton dimensions were 12 inches by 12 inches by 48 inches, and when holding 10 shades the carton weighed 101 pounds. Each carton costs 2.25 cents, including padding between individual shades. The lamp shades would be loaded into inter modal containers and transported by rail to the port of Vancouver. The transportation cost to Vancouver was a 1400 dollars per 40 ft container, without regard to weight, although the total shipment weight could not exceed 44,000 pounds per container due to highway weight constrictions. The interior dimensions of the inter modal container were 8 ft wide by 8.5 ft high by 40 feet long. Insurance costs were 2% of the value of the shipment ready to be loaded aboard ship in Vancouver (I.E. all of the companies cost up to this point). Let there be light learned that the transportaion cost from the port of Vancouver to the port of Shanghai were 800 dollars for a 40ft container.

1. How many style A shades can be loaded into a 40ft container?

2. How many style B shades can be loaded into a 40ft container?

3. How many style C shades can be loaded into a 40ft container?

4. What are the total costs of delivering style A shaded to the port of shanghai?

5. What are the total cots of delivering style B shades to the port of Shanghai?

6. What are the total cots of delivering style C shades to the port of Shanghai?

7. Which style would you recommend ? Why?

Reference no: EM131724981

Questions Cloud

Least one distinctive features of each major region : Drawing upon Instructor Insights, discuss at least one distinctive features of each major region of the country in this period.

Regression-discriminant-logistic regression-cluster analysis : Explain the marketing problem most likely to be addressed by the following models: regression, discriminant, logit, logistic regression, cluster analysis,

Product-industry and create a perceptual map : Choose a product/industry and create a perceptual map. Discuss why you chose this industry/product.

Skilled at designing the brochures : Skilled at designing the brochures, the contract was awarded to ExpoArts.

What are the total costs of delivering style shaded : Located 60 miles from Chicago Illinois, the let there be light lamp shade company. What are the total costs of delivering style A shaded to port of shanghai?

Result in a hostile environment for some employees : when its culture permits crude jokes and images that result in a hostile environment for some employees.

Discuss which microsoft desktop virtualization tools : Discuss which Microsoft desktop virtualization tools you would require and the corresponding cost.

The emphasis on corporate governance-social responsibility : The emphasis on corporate governance and social responsibility has distracted leaders from key business issues such as serving customers and beating competitors

Firm must decide whether to make a component part in-house : Firm must decide whether to make a component part in-house, or to contract it out to an independent supplier.

User Account

All Pages