Question: A company needs to ship 1 , 0 0 0 units of product from its manufacturing plant in Chicago to a retail location in Denver.

A company needs to ship 1,000 units of product from its manufacturing plant in Chicago to a retail location in Denver. The company has the option of using cross-docking via a third-party logistics provider that charges $500 for cross-docking and $1.00 per mile for the final delivery from the cross-docking facility to the retail location. The distance between the manufacturing plant in Chicago and the cross-docking facility in St. Louis is approximately 300 miles, while the distance between the cross-docking facility in St. Louis and the retail location in Denver is approximately 800 miles.
What will be the total transportation cost for the company if they choose cross-docking?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

Pam Corporation acquired a 90 percent interest in Sun Corporation on January 1, 2016, for $2,700,000, at which time Sun's capital stock and retained earnings were $1,500,000 and $900,000,...

Q:

A company needs to ship 1,000 units of product from its manufacturing plant in Chicago to a retail location in Denver. The company has the option of using cross-docking via a third-party logistics...

Q:

A company needs to ship 1,000 units of product from its manufacturing plant in Chicago to a retail location in Denver. The company has the option of using cross- docking via a third-party logistics...

Q:

Your business (based on your selected topic from your project charter development bakery, pizza restaurant, vending machine, jewelry shop, etc.) currently has $10 million in sales revenues per year...

Q:

Question 1 1 pts Managerial accounting: Managerial accounting: has its primary emphasis on the future. is required by regulatory bodies such as the SEC. focuses on the organization as a whole, rather...

Q:

Choose the best option. Each question is worth 2 points. There are 25 questions. 1. Storm Corporation purchased a new machine on October 31, 2014. A $2,400 down payment was made and three monthly...

Q:

1. Which of the followin g best describes a situation where a customer's special order should be accepted : A) its revenue exceeds allocated fixed costs, regardless of the variable costs associated...

Q:

Could someone please assist me with these questions, it would be greatly appreciated. Thank you 1 One difficulty with self-imposed budgets is that they are not subject to any type of review. A) True...

Q:

Tichina Scales S E AutoSave A 8 - = scales_Miller-Nobles_6e-12e-Using Excel_Ch22_Start - Protected View - Excel The Home Insert Draw P age Layout Formulas Data Review View Help Search PROTECTED VIEW...

Q:

check on the file and download the...

Q:

Cars-to-Dealers Logistics Inc. is the exclusive logistics provider for the Summit Motor Co. and has responsibility for transporting cars from Summit's 3 manufacturing plants in Toledo, OH; Charlotte,...

Q:

A satellite is placed in a noncircular orbit about the Earth. The farthest point of its orbit (apogee) is 4 Earth radii from the center of the Earth, while its nearest point ( perigee ) is 2 Earth...

Q:

1. Write a short note on three of the following. Each answer should be no longer, than two pages long. (a) "In the past, when companies reached the point at which they were generating large amounts...

Q:

There are four methods managers can implement when making capital asset decisions. Which swo mothods work best for investerns that have a relatively short - Ieam lifespar A . Payback period and...

Q:

Premise: Using a dictionary and list, create a set of key / value pairs that consists of a musical database. The key / value pairs should consist of Artist Name: Song Names pattern. For example, EACH...