Question: This is all the information I have Your procurement department just bought 11,000 cases of abrasive discs from South Korea and you need to work

This is all the information I have

Your procurement department just bought 11,000 cases of abrasive discs from South Korea and you need to work out getting them to your DC.

  • The terms of the procurement state that cases will be floor loaded into containers and you will pay the transport costs from that point.
  • If you wish to change this to a palletized load you will need to pay the cost of palletizing the load.
  • The cost of draying (trucking) a container (size does not matter) to the seaport in South Korea is $200 per container.
  • The containers will be shipped to the Port of Los Angeles and then moved by truck or intermodal rail to your DC located in Phoenix Arizona (420 miles)
  • When the shipment arrives at the DC the cases need to have been or must be loaded onto 48" x 40" pallets with a total height not to exceed 54" with a total weight not to exceed 750 lbs.
  • The cases themselves are 8" x 10" by 8" in height and weigh 6 lbs. each
  • The 48" X 40" pallets weigh 22 lbs. each and are 6" in height
  • The total charge for shipping a 40' high cube container from South Korea to LA is $6500
  • The interior dimensions of the 40" high cube container are:
    • Length 39' 5 3/8", Width 7' 11 3/4", Height 8' 10"
    • Weight capacity is 63,000 LBS
  • The total charge for shipping a 20' container from South Korea to LA is $4300
  • The interior dimensions of the 20' container are:
    • Length 19' 4 1/8", Width 7' 10 1/4", Height 7' 10 1/4"
    • Weight capacity is 63,000 LBS
  • The interior dimensions of a 53' semi-truck trailer are:
    • Length 52' 6", Width 8' 3", Height 9' 2 1/4"
  • Cost of trucking to Phoenix (all inclusive) $2.84 / mile per truck
  • Time needed to palletize the 11,000 cases is 20 person-hours
  • Labor cost per person hour in South Korea $15, in Los Angeles $22, Phoenix $17
  • If you palletize the load in Los Angeles, you can shift the load into a 53' semi-truck trailer
  • Total gross cargo weight per trailer or container cannot exceed 45,000 lbs. while being moved by truck in the U.S. (note: there are exceptions to this general statement, however we will not address them in this assignment)
  • If you wish to use inter-modal rail from LA to Phoenix you can assume the cost will be 30% less than the cost of trucking, but it will take twice as long.

In this assignment you are to:

1. Calculate the total, most economical, costs of the shipments for the following three scenarios:

  • The load is palletized in South Korea
  • The load is palletized in Los Angeles
  • The load is palletized in Phoenix

2. Show all your calculations including:

  • Number of cases and total weight of the floor loaded containers
  • Number of cases loaded onto each pallet, total pallet weight, and the number of pallets per container if the shipments are palletized
  • The gross weights (including pallets, if applicable) loaded into each container and or truck trailer used in the shipments.

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