OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9780077835439
Author: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
Publisher: McGraw-Hill Education
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Chapter 18, Problem 2P
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To decide: The cheaper option among two options.
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The Superior Manufacturing Company wants to make two shipments from Dallas, Texas to Los Angeles, California. The first shipment weighs 10,000 pounds and the second shipment weighs 15,000 pounds. The carrier charges $10 per hundredweight (cwt) if the goods are shipped separately and they arrive in two days. If the goods can be consolidated into one shipment the cost would be $8 per cwt to ship them in a truckload lot, but it would cost $500 to consolidate the shipments at the carrier’s warehouse and it would take three days. Which is the lowest cost approach and which approach would you select?
Evaluate an alternative that involves consolidating all 20-foot container volumes and using onlya single consolidation center in Shanghai/Ningbo. Assume that all the existing 20-foot containervolumes and the existing consolidation center volumes are sent to this single consolidationcenter by suppliers. This new consolidation center volume would be packed into 40-footcontainers, filled to 96 percent, and shipped to the United States. The existing 40-foot volumewould still be shipped direct from the suppliers at 85 percent capacity utilization
Evaluate an alternative that involves consolidating all 20-foot container volumes and using only a single consolidation center in Shanghai/Ningbo. Assume that all the existing 20-foot container volumes and the existing consolidation center volumes are sent to this single consolidation center by suppliers. This new consolidation center volume would be packed into 40-foot containers, filled to 96 percent, and shipped to the United States. The existing 40-foot volume would still be shipped direc t from the suppliers at 85 percent capacity utilization.
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OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
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