A shipment comprising medical supplies, equipment and parts is to be air-freighted from Amsterdam in the Netherlands
Question:
A shipment comprising medical supplies, equipment and parts is to be air-freighted from Amsterdam in the Netherlands to Singapore. Details of the air cargoes are shown below. The published rates for general cargo from Amsterdam to Singapore is shown below too.
Shipment
Cargo | # of pieces | Total vol (m^3) | Total weight (kg) |
Medical supplies | 900 | 13 | 2000 |
Medical equipment | 24 | 2 | 800 |
Equipment parts | 100 | 0.5 | 250 |
General cargo rates
Min rate | US$35 |
Normal rate | US$3.60/kg |
Quantity rate (> 45kg) | US$3/kg |
300 kg | US$2 |
600kg | US$1.50 |
Appraise the reduction in shipment charges by consolidation. How can you avoid high shipment charges for low density shipments? Assume the conversion factor to volumetric weight is 166.7kg/m^3.
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young