Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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- A manufacturer has two shipments to make from Minneapolis to Chicago. Both shipments weigh 8500 pounds. The two shipments can be shipped separately to Chicago at a cost of $2.00 per mile for a total of 409 miles and will take one day for each shipment. The company has a warehouse in Milwaukee where they can consolidate the freight. It would take two LTL shipments at $2.00 per mile to get the freight to Milwaukee for 337 miles and then one full TL shipment from Milwaukee to Chicago at $1.50 per mile for 92 miles. The consolidation cost in Milwaukee is $200 and it takes two days for the trip through Milwaukee. What is the lowest cost to ship the freight and which approach would you select?arrow_forward14. In addition to cost, which of the following is a key factor to consider in transportation mode decisions? A. Performance against promised delivery times. B. Access to the mode, from both the supplier and customer perspectives. C. Special handling requirements. D. All of the above.arrow_forwardA supplier ships goods from Richmond, VA to three market places in 3 cities (Chicago, IL; Athens, GA; St. Luis, MO). The supplier can ship every day, every other day, or every third day. There is a penalty of $0.30/cwt for each day delayed. Consolidating shipments allows for lower transportation costs from larger loads, but incurs penalty costs due to the delay. Transportation Rate (S/cwt) Shipment City Weight/day LTL 50,000 lb 50000 lb Chicago, IL 18,000 lb (180 cwt) 1.50 1.25 Athens, GA 15,000 lb (150 cwt) 1.35 1.00 St. Luis, MO 12,000 lb (120 cwt) 2.00 1.50 Total 45,000 Ib = 450 cwt Find what is the cost for the following: Shipping Every Day Shipping on the alternate Day (every two days) Shipping every three Dayarrow_forward
- 104) Cross-Border Supply refers to trade in services where: a) the service crosses a border, but the producer and consumer do not. b) the producer travels to the consumer location to deliver the service c) The consumer travels to the producer’s location to consume the service d) Both B and Carrow_forwardWhich of the following defines Inbound Logistics the most? 1. The process of finding and purchasing goods and services for the needs of the supply chain. 2. The process of storage and transportation of finished products from a warehouse or distribution center to customers. 3. The process of acquiring raw materials and resources from suppliers and distributing them to manufacturing facilities. 4. The process of planning and control over the use of inventory to ensure that materials are available as required to meet production schedules.arrow_forwardWhich of the following is not information needed to use the transportation model? Multiple Choice Unit shipping distances. Capacity of the sources. All of the answer choices are correct. Demand of the destinations. Unit shipping costs.arrow_forward
- Explain what kind of costs you evaluate when you do the trade-off in transportation mode analysis.arrow_forwardValles Galactic Industries (VGI) owns a small company (VGI-Durango Sur) that manufactures various electronic products for original equipment manufacturers. Customer companies provide engineering designs, materials lists, and some unique materials. VGI-DS provides labor and space for the manufacturing and assembly operations and stocking a variety of inventory items for production, such as wire, cables, some electronic components, etc. Thus, VGI-DS orders a variety of components and raw materials by contract. The labor pool is primarily composed of about 100 retirees picking up extra cash by working four to six-hour shifts. Thus, the assembly operations must be simple and easy to teach. Skilled employees must do several raw material conversions for packaging—there are currently three such employees. VGI-DS receives forecasts from VGI headquarters for planned production for two years on a rolling quarterly basis. Staff at VGI-DS develop schedules and inventory plans based on this…arrow_forwardThe Logistics Scoreboardarrow_forward
- This page is related to Transportation and freight forwarding Project one Rene’s Royal Fabrics, a manufacturer of fashion garments and fabric, uses three primary carriers to move fabrics from its Toronto factory to retailers and fashion designers in Canada and the United States. He wants to evaluate the performance of the three carriers. He collected data for the following metrics over a four-month period. Performance Criteria Allied Transport Bestway Freight Certaint Carriers On-time delivery 99% 98.5% 98% Loads with damage claims 0.8% 1.8% 0.5% Customer satisfaction ratings 4.5 4 3.8 Billing accuracy 99.2% 99.5% 98.1% Loads rejected 1.4% 2.2% 0.8% Rene asked Abimbola, his transportation manager, to develop a scorecard to help compare the carriers on these five metrics. Abimbola came up with the following chart: Performance Criteria Weight Factor(how importantthe criteria isto your company) Performance Evaluation Maximum Score Possible Actual Score(weight…arrow_forwardA supplier ships goods from Richmond, VA to three market places in 3 cities (Chicago, IL; Athens, GA; St. Luis, MO). The supplier can ship every day, every other day, or every third day. There is a penalty of $0.30/cwt for each day delayed. Consolidating shipments allows for lower transportation costs from larger loads, but incurs penalty costs due to the delay. Transportation Rate (S/cwt) Shipment City Weight/day LTL 50,000 lb 50000 lb Chicago, IL 18,000 lb (180 cwt) 1.50 1.25 Athens, GA 15,000 lb (150 cwt) 1.35 1.00 St. Luis, MO 12,000 lb (120 cwt) 2.00 1.50 Total 45,000 Ib = 450 cwt Find what is the cost for the following: Shipping Every Day Shipping on the alternate Day (every two days) Shipping every three Dayarrow_forwardT or F Logistics management is the primary process of supply chain management.arrow_forward
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