Bruin Logistios handles hundreds of shipments from businesses in the Los Angeles

Question

Bruin Logistios handles hundreds of shipments from businesses in the Los Angeles area Al present, Bruin has hree shipments to deliver to the Anta area EEB Click the loon to view the shipments table The cool to Bruin ofl sending a truck from Los Angeles to Adanta is $2,000. The maximum load per truck is 20,000 pounds Bruin were to use a direct truck shipment for each oustomer, the shipping costs would be $2,000 per customer or saoottal. The weight ulitation across aa noe rucks would be 10,000 poundw0.000 pounds, orjust 17%--andy an economic or envermortily ws·use ofresources But suppose Bruin has a consolidation warehouse where loads from multiple oustomers can be combined. Of course, there are costs associated with consolidation Assume that the cost of ruing the warehouse is approximabely $0 per hund odwe ht Further ore, Brun decides to oor soldate the three s ig ments, t must oor s der the addtora. cost of b eaking them upfo local da ery, wtch, s ot an issue in dret rudne sa pose teoostof breakig tone shone $200 for each oustomer. Under these conditions, the costs of consolidating the three shipments to Allanta would be El Click the icon to view the consolidated delivery costs Given all of this information, recaloulate the cost of the consolidation option f ail costs remain the same encept a. The cost of running the warehouse doubles to $18 per hundred-weight. All other values stay the same as provided in the prdlm statement The cost of the consolidation option is nowEnter your response as a whole mumber b. Delivery costs to each oustomer tall to $150 All other values stay the same as provided in the problem statement The cost of the consolidation option " nows (Erte, your response a. a whole numbe) he coot of the consolidation option is nowntr your response as a whole number)

Explanation / Answer

Given the problem, post-consolidation cost would be as follows:

Number of customers = 3

Cost for breaking local delivery = 3* 200 = $600

Now, since consolidation has happened, only one truck would be shipped to Atlanta, so cost of shippping = $2000

Cost of running warehouse = $9 per hundred-weight (Image is unclear, as far as I could read it is $9)

Total weight = 10,000 pounds for all 3 shipments

Total cost of runnin warehouse = $ 900

Total cost of consolidation method = $ 2000 + $ 600 + $ 900 = $3500

part a) Cost of running warehouse doubles, all cost remain same

Total cost of consolidation method = $ 2000 + $ 600 + $ 1800 = $4400

part b) Delivery cost falls to $150, reduction of $50 per customer

Total cost of consolidation method = $ 2000 + $ 450 + $ 900 = $ 3350

part c) Cost of sending truck reduces to $ 1800 , delivery cost rises by $ 50

otal cost of consolidation method = $ 1800 + $ 750 + $ 900 = $ 3450

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