Question: Cost calculation Before collaboration After shipper Y shipper Z collaboration Maximum Loading per TL Units loaded (product) 400 200 Units loaded (product) 400 200
Cost calculation Before collaboration After shipper Y shipper Z collaboration Maximum Loading per TL Units loaded (product) 400 200 Units loaded (product) 400 200 Total weight per TL (bs) 40,000 20,000 30,000 Total volume per TL. (cu ft) 2,000 4,000 3,000 Capacity utilization % of weight capacity 100.0% 50.0% 75.0% % of volume capacity 50.0% 100.0% 75.0% Total TL shipments needed Dedicated (product Yonly) Dedicated (product Zonly) 10 0 10 0 Non-dedicated (mixed loads) 201 Total TL shipments 10 Transportation Cost 10,000 Cost per shipper 10,000 10 10,000 10,000 20 20,000 10,000 The maximum loading given by the amount (until beyond which the weight capacity or volume capacity would be violated Case Questions 1. If exactly the same amount (unit) of each product must be loaded onto a truck, what is the maximum units of each product that can be loaded per truck? Make sure that the solution you provide does not violate either the weight or volume capacity constraint. 2. Using the solution obtained in the first question, calculate the number of total TL shipments needed (shippers Y and Z combined) when the collaboration takes place between the two shippers. 3. Based on the answers to questions 2, calculate the cost of transportation under the pool distribu- tion scenario. Calculate both the combined cost and the cost per shipper (assuming that the cost is shared evenly between the two shippers). How much cost saving is attained by each shipper? 4. If you do not have to load exactly the same amount (unit) of each product onto a truck, can you come up with a better (lower cost) solution?
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