Problem 4. You have been asked to replace the regular dispatcher who is out sick. Your company is located in Denton, TX and ships to three different customers on a regular basis. Depending on the volume shipped (CWT) and distance, your carrier assigns different rates. During the last 10 months, your firm has averaged the following orders and rates:

Rates per CWT

Note: all rates are expressed in dollars per CWT. You need to convert the weight to CWT and determine the total cost. Distance has been previously factored into the rate per CWT.

1. What analysis would you perform and why?

2. What are the results of your analysis (show calculations to support)?

3. What would you recommend to your firm? Your customer? What actions could your firm and customer take to implement these recommendations?

For Q2, explain me how to calculate total cost using combined rate.