Question: For $ 0 . 4 5 per Ib , the Bee Sweet Honey Company ships their product from Vancouver to Toronto customers with less than
For $ per Ib the Bee Sweet Honey Company ships their product from Vancouver to Toronto customers with less than full truckload shipments, which is miles apart. The new logistics enginee is proposing that a distribution warehouse be purchased in the Toronto area where the product can be shipped in full truck load quantities, and then distributed to the nearby customers via an LTL for $cwt The engineer's assumption is that the proposed warehouse will have a fixed cost of $ per Ib Using current trucking cost projections, it is estimated that the TL cost from Vancouver to the proposed warehouse would be $ per lb for full truckload shipments. The annual freight to be shipped to the Ontario customers is projected to be cwtIbs. What is the financial impact of the warehouse proposal for the Toronto market?
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