You and your friend Clarence are moved into the transportation department for Daily Top Chef. They...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You and your friend Clarence are moved into the transportation department for Daily Top Chef. They distribute their food from each kitchen to their assigned regions using a hub and spoke network. Each night, one large truck hauls all of the pouches for a single region to a parking lot in the middle of that region. The pouches are then transferred from the large truck to several vans in the parking lot. These vans then deliver the pouches to the customers in the early morning hours. This is sometimes called "pooled" operations, where a larger capacity vehicle brings in a large quantity of items that are "cross-docked" into smaller local vehicles for final delivery. You are trying to understand the cost of delivering to the Oklahoma City region north of your kitchen in Dallas, Texas. You understand the following: • Each evening one truck leaves the kitchen in Dallas and drives to the parking lot (the pool point) in the center of the Oklahoma City region with all of the pouches for that entire region. • The truck has a capacity to hold 500 pouches of food and truck transportation cost is $675 (the transportation cost includes loading and unloading costs of the truck). • In Oklahoma City, there is a fleet of vans that perform the local delivery. • The capacity of each van is 50 pouches. • The cost to load each van at the pool point is $10. The cost to stop at a customer location is $2 per stop. The cost to unload and deliver a single pouch at a destination is $0.50 per pouch. The cost for driving the local vans is $2.25 per mile. • Your daily demand for food pouches is 325 pouches and each customer only gets one pouch. • The Oklahoma City Region is estimated to be essentially a square of 20 by 20 miles with the pool point exactly in the middle. Part 1 What is the daily cost for hauling the food pouches from the kitchen in Dallas to the pool point of the Oklahoma City Region? Enter you answer in dollars rounded to the nearest integer. Do NOT include the $ symbol in your answer. 675 675 What is the daily cost for loading the vans with the food pouches at the Oklahoma City pool point? Enter your answer in dollars rounded to the nearest integer. Do NOT include the $ symbol in your answer. 70 70 Part 2 What is the daily cost for delivering pouches to customers for the Oklahoma City region point? Include only the per stop charges and the per pouch charges. Enter your answer in dollars rounded to the nearest integer. Do NOT include the $ symbol in your answer. 813 813 Part 3 The Oklahoma City Region is estimated to be essentially a square of 20 by 20 miles with the pool point exactly in the middle. The figure below shows a sketch for the location of the pool point and the center of one delivery district. 20 236 236 What is the daily cost for the linehaul driving of all the vans from the pool point to the center of each delivery district and back, within the Oklahoma City region (roundtrip linehaul cost)? Assume a linehaul circuity factor of 1.06. Enter your answer in dollars rounded to the nearest integer. Do NOT include the $ symbol in your answer. 892 892 20 What is the daily cost for the local driving of the vans in the Oklahoma City region? Assume a traveling salesman factor of 1.10. Enter your answer in dollars rounded to the nearest integer. Do NOT include the $ symbol in your answer. delivery district center 8.26 pool point 8.26 Part 4 What is the total daily transportation cost per pouch for the Oklahoma City region? Include all costs from leaving the kitchen to delivery to the customer. Enter your answer in dollars rounded to the second decimal. Do. NOT include the $ symbol in your answer. Part 5 Your manager, Anna, is concerned that the per unit cost for delivering the pouches is too high. She wants you to explore ways to reduce the total logistics cost per pouch for this region. One approach to reduce the average per unit cost for delivering pouches is to negotiate a lower trucking cost from the Dallas kitchen to the Oklahoma City pool point. Assuming all else stays the same, what would the new transportation cost of the truck have to become in order to reduce the daily transportation cost per pouch for the Oklahoma City region to $7.25? Include all costs from leaving the kitchen to delivery to the customer. Enter your answer as a dollar value rounded to the nearest integer. Do NOT include the $ symbol in your answer. Another approach to reduce the average per unit cost for delivering pouches is to negotiate a lower local VAN cost per mile. Assume that everyting else stays as in the initial problem statement. What would the new driving cost per mile for the vans have to become in order to reduce the daily transportation cost per pouch for the Oklahoma City region to $7.25? Include all costs from leaving the kitchen to delivery to the customer. Enter your answer as a dollar value rounded to the second decimal. Do NOT include the $ symbol in your answer. You and your friend Clarence are moved into the transportation department for Daily Top Chef. They distribute their food from each kitchen to their assigned regions using a hub and spoke network. Each night, one large truck hauls all of the pouches for a single region to a parking lot in the middle of that region. The pouches are then transferred from the large truck to several vans in the parking lot. These vans then deliver the pouches to the customers in the early morning hours. This is sometimes called "pooled" operations, where a larger capacity vehicle brings in a large quantity of items that are "cross-docked" into smaller local vehicles for final delivery. You are trying to understand the cost of delivering to the Oklahoma City region north of your kitchen in Dallas, Texas. You understand the following: • Each evening one truck leaves the kitchen in Dallas and drives to the parking lot (the pool point) in the center of the Oklahoma City region with all of the pouches for that entire region. • The truck has a capacity to hold 500 pouches of food and truck transportation cost is $675 (the transportation cost includes loading and unloading costs of the truck). • In Oklahoma City, there is a fleet of vans that perform the local delivery. • The capacity of each van is 50 pouches. • The cost to load each van at the pool point is $10. The cost to stop at a customer location is $2 per stop. The cost to unload and deliver a single pouch at a destination is $0.50 per pouch. The cost for driving the local vans is $2.25 per mile. • Your daily demand for food pouches is 325 pouches and each customer only gets one pouch. • The Oklahoma City Region is estimated to be essentially a square of 20 by 20 miles with the pool point exactly in the middle. Part 1 What is the daily cost for hauling the food pouches from the kitchen in Dallas to the pool point of the Oklahoma City Region? Enter you answer in dollars rounded to the nearest integer. Do NOT include the $ symbol in your answer. 675 675 What is the daily cost for loading the vans with the food pouches at the Oklahoma City pool point? Enter your answer in dollars rounded to the nearest integer. Do NOT include the $ symbol in your answer. 70 70 Part 2 What is the daily cost for delivering pouches to customers for the Oklahoma City region point? Include only the per stop charges and the per pouch charges. Enter your answer in dollars rounded to the nearest integer. Do NOT include the $ symbol in your answer. 813 813 Part 3 The Oklahoma City Region is estimated to be essentially a square of 20 by 20 miles with the pool point exactly in the middle. The figure below shows a sketch for the location of the pool point and the center of one delivery district. 20 236 236 What is the daily cost for the linehaul driving of all the vans from the pool point to the center of each delivery district and back, within the Oklahoma City region (roundtrip linehaul cost)? Assume a linehaul circuity factor of 1.06. Enter your answer in dollars rounded to the nearest integer. Do NOT include the $ symbol in your answer. 892 892 20 What is the daily cost for the local driving of the vans in the Oklahoma City region? Assume a traveling salesman factor of 1.10. Enter your answer in dollars rounded to the nearest integer. Do NOT include the $ symbol in your answer. delivery district center 8.26 pool point 8.26 Part 4 What is the total daily transportation cost per pouch for the Oklahoma City region? Include all costs from leaving the kitchen to delivery to the customer. Enter your answer in dollars rounded to the second decimal. Do. NOT include the $ symbol in your answer. Part 5 Your manager, Anna, is concerned that the per unit cost for delivering the pouches is too high. She wants you to explore ways to reduce the total logistics cost per pouch for this region. One approach to reduce the average per unit cost for delivering pouches is to negotiate a lower trucking cost from the Dallas kitchen to the Oklahoma City pool point. Assuming all else stays the same, what would the new transportation cost of the truck have to become in order to reduce the daily transportation cost per pouch for the Oklahoma City region to $7.25? Include all costs from leaving the kitchen to delivery to the customer. Enter your answer as a dollar value rounded to the nearest integer. Do NOT include the $ symbol in your answer. Another approach to reduce the average per unit cost for delivering pouches is to negotiate a lower local VAN cost per mile. Assume that everyting else stays as in the initial problem statement. What would the new driving cost per mile for the vans have to become in order to reduce the daily transportation cost per pouch for the Oklahoma City region to $7.25? Include all costs from leaving the kitchen to delivery to the customer. Enter your answer as a dollar value rounded to the second decimal. Do NOT include the $ symbol in your answer.
Expert Answer:
Answer rating: 100% (QA)
To reduce the daily transportation cost per pouch for the Oklahoma City region to 725 we need to fin... View the full answer
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
Posted Date:
Students also viewed these accounting questions
-
You and your friend Joe have identical tastes. At 2 p.m., you go to the local Ticketmaster outlet and buy a $30 ticket to a basketball game to be played Pound of compost pounds of tomatoes . 100 1....
-
Your instructor challenges you and your friend to each pull on a pair of scales attached to the ends of a horizontal rope, in tug-of-war fashion, so that the readings on the scales will differ. Can...
-
You and your friend Harry have started a business. Harry is a technical whiz, but doesnt know much about business or finance. After several months youve been approved for a $100,000 bank loan at what...
-
On 1 June 1998, Alice bought a house in Derby for 45,000. - She occupied the house as her PPR until 1 May 2000 when she left to work in Exeter, living in rented accommodation. - She returned to the...
-
The following are eight technical accounting terms introduced or emphasized in this chapter: Activity-based management Just-in-time manufacturing system Life-cycle costing Non-value-added activity...
-
John is a single individual who works for Auto Rental Cars in Japan during the entire calendar year. His salary is $140,000. How much of this salary can he exclude?
-
An engineer is comparing the time to failure (in flight hours) of two different air conditioners for airplanes and wants to determine if the median time to failure for model \(\mathrm{Y}\) is longer...
-
The following CVP income statements are available for Red Company and Blue Company. Instructions (a) Compute the break-even point in dollars and the margin of safety ratio for each company. (b)...
-
On December 31, 2020, Waterway Company purchased a controlling interest in Oriole Company for $1,220,000. The consolidated balance sheet on December 31, 2020 reported noncontrolling interest in...
-
The General Fund of Dilligan County, Virginia, has total fund balance of $17,000,000 at June 30, 20X0, the end of its fiscal year. Additional information is provided below. 1. The county has...
-
Select the true sentence(s) about markup languages. Select one or more: a. An XML Schema document is often referred to as an XSD (XML Schema Definition) and given the file extension .xsd . XML schema...
-
The function Y is defined as Y + k. Based on the table shown, what is the value of k? k XO-2345 VROLONG 0 1 Y 15 10 7 6 7 10 Y VAWANNN 12
-
If f(x) = 6 + Find '(1). Find (x). Find f"(1). 7 X + 2 2 find f'(x). > O
-
Why would researchers need to study how individual differences in gender, personality, and culture factor in the effectiveness of a negotiator?
-
Fairfield estimates that its Gross profit will be approximately 60% of sales, its Operating expenses will be 30% of sales and its support overhead at 10% of sales. Depreciation, which is not included...
-
1. Patty converted her main home to rental property two years ago when it was worth $70,000. Patty paid $85,000 for the house. What is Patty's basis in the house if after taking $10,000 of...
-
(3) Make an analysis of the shape n(x) of the water-air interface near a plane wall, as shown below, assuming that the slope is small, R= d'n/dx. Also assume that the pressure difference across the...
-
The liquidliquid extractor in Figure 8.1 operates at 100F and a nominal pressure of 15 psia. For the feed and solvent flows shown, determine the number of equilibrium stages to extract 99.5% of the...
-
Explain the difference between the operating cycle (OC) and the cash conversion cycle (CCC).
-
Consider the following scenario and calculate beginning UCC, CCA, ending UCC, after-tax incremental cash flow, and CCA tax shield every year. Annual incremental cash flow includes the lost revenue of...
-
Explain how trade credit allows firms to use their suppliers as sources of short-term funds.
-
Consider the electrical circuit shown below where \(v_{i}(t)=\beta\), for \(t \geq 0\). Find the dynamic system response \(v_{o}(t)\). VC C ww R V;(t) R ww R3 A First-Order Electrical System Vo (t) +
-
Consider a first-order system with no input such that the input-output differential equation is given by \[\dot{y}+3 y=0 \text {. }\] Find its system response.
-
Find the dynamic system response for the spring mass damping system shown in Figure 3.2, where \(f(t)=\beta, x(0)=0\) (i.e. there is no initial energy stored). b f(t) k Figure 3.2 A first-order...
Study smarter with the SolutionInn App