A supplier ships goods from Richmond, VA, to three marketplaces in 3 cities (Chicago, IL, Athens,...

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A supplier ships goods from Richmond, VA, to three marketplaces in 3 cities (Chicago, IL, Athens, GA, St. Luis, MO). The supplier can ship every other 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.] City Chicago, IL Athens, GA St. Luis, MO Total Shipment Weight/day 18,000 lb (180 cwt) 15,000 lb (150 cwt) 12,000 lb (120 cwt) 45,000 lb= 450 cwt Transportation Rate (S/cwt) LTL < 40,000 lb 1.50 1.35 2.00 TL > 40,000 lb 1.25 1.00 1.50 The supplier must provide two days' demand (2 x 450 CWT = 900 CWT) to three marketplaces. Note: There will be a penalty for not shipping the first day (0.3 per cwt). On a two-day schedule, which shipping method - LTL or TL- is more cost-effective for shipping to Chicago, and what is the total least shipping expense for Chicago only? A supplier ships goods from Richmond, VA, to three marketplaces in 3 cities (Chicago, IL, Athens, GA, St. Luis, MO). The supplier can ship every other 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.] City Chicago, IL Athens, GA St. Luis, MO Total Shipment Weight/day 18,000 lb (180 cwt) 15,000 lb (150 cwt) 12,000 lb (120 cwt) 45,000 lb= 450 cwt Transportation Rate (S/cwt) LTL < 40,000 lb 1.50 1.35 2.00 TL > 40,000 lb 1.25 1.00 1.50 The supplier must provide two days' demand (2 x 450 CWT = 900 CWT) to three marketplaces. Note: There will be a penalty for not shipping the first day (0.3 per cwt). On a two-day schedule, which shipping method - LTL or TL- is more cost-effective for shipping to Chicago, and what is the total least shipping expense for Chicago only?

Answer rating: 100% (QA)

Lets calculate the total shipping expenses for both LTL and TL methods 1 LTL Method Since ... View the full answer