A company ships barbecues fully assembled. The average line-haul cost per shipment is $12.50 per mile, and the truck carries 100 assembled barbecues. The company decides to ship the barbecues unassembled and figures it can ship barbecues in a truck. Calculate the line-haul cost per barbecue assembled and unassembled. If the average trip is 300 miles, calculate the saving per barbecue?
Answer(s): A
The art charged by a carrier will also vary with the commodity shipped and will depend upon the following:
Answer(s): D
A company normally ships to a customer by rail at a cost of $500 per load. The transit time is fourteen days. The goods can be shipped by truck for $700 per load and transit time of four day. If transit inventory cost is $35 per day, what does it cost to ship each way?
A company ships a particular product to a market located 1000 miles from the plant at a cost of $4 per mile. Normally it ships 500 units at a time. If the company can ship the units unassembled, it can ship 800 units in a truck. What is the line-haul cost per unit now?
Answer(s): B
The planning horizon is usually longer for several reasons e.g.:
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