1. Unitization Problem 1 (3 total points)

A new protein shake is being released. Seventy-two protein drinks can be placed into a case that measures 12 Wide, 22 Long, and 20 High and weighs 60 lbs. Company safety standards only allow 62 of cases to be placed onto one pallet. Pallet sizes used at the distribution center are 48 x 36 and dynamic load ratings are 3,000 lbs. (Note: You cannot rotate the cases to stack on the height side)

1. Based on this information, how many cases of protein drinks can be loaded to one pallet to make a unit load?

2. Cubing Problem (6 total points) A pallet containing cases of canned soup weighs 2,400lbs, contains 2,112 individual cans of soup, and measures 48L x 36W x 60H. Shipments are usually completed in small straight trucks with weight capacity of 17,000 lbs and 240 x 90 x 90 interior dimensions.

1. How many pallets can fit into one straight truck without weighing out or filling out?

2. Using the number of pallets calculated from part a, calculate how many individual cans of soup are contained in the pallets.

3. If a TL lane rate for a straight truck is $1,000 for delivery to a customer, what is the per unit transportation cost for each can of soup?

3. Transportation Costing Problem 3 (6 points)

Your manufacturing facility needs 175 special coated stainless steel sheets delivered per day. Each steel sheet weighs 200 lbs. You are evaluating two suppliers to provide daily delivery of steel sheets.

SUPPLIER A: Supplier A charges $526.00 per sheet (not including transport costs). The TL rate for the lane connecting your manufacturing facility to Supplier A is $0.10 per pound for a 50,000 pound trailer. The LTL rate is $0.12 per pound.

SUPPLIER B: Supplier B charges $522.00 per sheet (not including transport costs). The TL rate for the lane connecting your manufacturing facility to Supplier B is $.20 per pounds for a 50,000 pound trailer. The LTL rate is $0.30 per pound.

1. Calculate the total cost for 175 sheets from each supplier with each type of load types (TL), (LTL).

2. Calculate the per sheet cost by dividing the total landed cost for each of the four options (two suppliers x two load types) by 175 sheets.

3. What supplier & what load type (TL, LTL) would you recommend based only on costs?