Transportation Configuration Question Basket Makers international is the premier provider of home basket ball hoops and backboards.
Fantastic news! We've Found the answer you've been seeking!
Question:
Transportation Configuration Question | ||||||||||||||||||
Basket Makers international is the premier provider of home basket ball hoops and backboards. | ||||||||||||||||||
Its factory is located in Farwest Missouri. Most orders come from individuals and small mom and pop shops. They currently ship 11,000 hoops and backboards a year. | ||||||||||||||||||
Today every hoop set goes separately. They ship the wheel sets LTL on Fedex and each shipment costs $100.00. | ||||||||||||||||||
Because of competition from Amazon they are compelled to offer free shipping. Currently there is no middle man. The average hoop set sells for $750.00 and costs $450.00 to produce. | ||||||||||||||||||
As the new manager of supply chain at baskets international you have been asked to attack the shipping costs, which are eating into their margins. You work with a 3PL to set up another option. | ||||||||||||||||||
The 3PL will take full truck loads to their warehouses of 100 sets at a time, and ship them locally for $50.00. The full truck loads cost $5,000 each. | ||||||||||||||||||
Altenatively, you have priced around and you can get Old Dominion to replace Fedex for $95.00 a hoop set. | ||||||||||||||||||
Please show answer in Excel | ||||||||||||||||||
Q1 | ||||||||||||||||||
How much is Basket Makers International currently making per year? | ||||||||||||||||||
ANSWER : | ||||||||||||||||||
Please show answer in Excel | ||||||||||||||||||
Q2 | ||||||||||||||||||
How much will the 3PL option save you per year? | ||||||||||||||||||
ANSWER : |
Related Book For
Posted Date: