Question 10 1 pts Every week, ACME Industries of Pittsburgh receives shipments f

Question

Question 10 1 pts Every week, ACME Industries of Pittsburgh receives shipments from 14 different suppliers in the Philadelphia area. Each individual order weighs, on average, 650 pounds. Each individual direct truck shipment from Philadelphia to Pittsburgh costs $275 per trip. (ACME pays each supplier for product plus shipping costs). A south Philadelphia logistics provider makes an offer to run a local consolidated warehousing operation for ACME Industries. The logistics provider will pick up the individual shipments from each Philadelphia location, temporarily store the items, do the appropriate paperwork and load everything on a single truck bound for Pittsburgh. The pick-up fee would be $55 per local supplier, and the warehousing cost would be $25 per every 100 pounds shipped. The consolidated direct truck shipment to Pittsburgh will cost $400. Notice which option provides the less costly distribution channel for ACME. If ACME runs individual trucks from each Philadelphia location to Pittsburgh, how mu does it cost ACME per week to accept these individual direct, single-order shipments? [ Choose ] $3,445 $6,850. $9,100. $6,500. $6,650 $3660 $3,850. How much would it cost to use the consolidated warehouse option for a week?

Explanation / Answer

Q10 a) Total shipping cost=no. of supplier* shipping charges=275*14=$ 3,850 b) Total shipping cost= no. of supplier * pick up fees + total quantity/ 100 pounds* warehousing cost +shipment cost==650*14/100*25+55*14+400=$ 3,445 Q11 Savings= (original shipping cost- new shipping cost)* no. of weeks in a year (3850-3445)*52= $ 21,060

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