Question: Consider periodic shipments between two cities that are 4 7 5 miles apart by road. Serving a yearly demand of 1 2 0 tons of

Consider periodic shipments between two cities that are 475 miles apart by road. Serving a yearly demand of 120 tons
of a product with a unit weight =20lb and volume =1ft3, answer the questions below regarding total logistics costs
(TLC). Production and consumption happen at constant rates, each ton of the product is valued at $5,000.00, and the
inventory carrying rate was estimated to be 25% of the product's value. Consider a PPI ?=155.
A) What is the maximum payload of a truck trailer used in this series of periodic shipments? Consider a weight capacity of 25
tons and a cube capacity of 2,750ft3.
B) If you ship only full truckloads, what is the resulting TLC Fr for the year?
C) If shipments must happen exactly once a month, what is the resulting TLC for the year?
D) If you ship the cost-minimizing payload, what is the resulting TLC for the year?
 Consider periodic shipments between two cities that are 475 miles apart

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