In the Illinois Quality Parts case study we first ran
In the Illinois Quality Parts case study, we first ran the baseline model with a rate of $2/mile for all lanes. Figure 8.14 shows the output of this scenario, showing total cost and total miles traveled out of each warehouse.
a. Even though we applied a rate of $2/mile, the table (total cost / total miles) shows a rate higher than $2/mile for all warehouses. Why is that? (Hint: Think about the fact that the true transportation rates include minimum charges.)
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help