Question: Breakbulk Warehouse Consideration Rocket Science is considering using a Breakbulk Warehouse model for customers in the same geographical area. LTL shipments directly from Rocket Science

Breakbulk Warehouse Consideration Rocket Science is considering using a Breakbulk Warehouse model for customers in the same geographical area. LTL shipments directly from Rocket Science cost $1,250 for a 2,000-pound shipment. Breakbulk facility close to customers, will cost an estimated $2400 per year and $50 per outbound shipment handled. Truckload Shipment Analysis Truckload shipments from Rocket Science have a capacity of up to 24,000 pounds (12 typical orders). Truck load carriers charge by the mile. The carrier charges a rate of $1.55 per mile, with an additional fuel surcharge of $0.18 per mile. Distance between Rocket Science and the potential breakbulk location as 1,450 miles. LTL Shipment Cost from Breakbulk Location LTL shipment of Fireworks from the Breakbulk location to the customer is $950. Considers the cost-effectiveness of using the breakbulk facility for shipping to customers in the same geographical area. Using the customers in the geographical area same as a trial calculation, would adding the break bulk operation make sense from a cost standpoint assuming 12 orders a year? Show your calculations

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!