A telephone company manufactures a cordless telephone in Philidelphia, PA. Annua
ID: 457129 • Letter: A
Question
A telephone company manufactures a cordless telephone in Philidelphia, PA. Annual production is 25,000,000 units. All units are packaged and shipped by truck to the central distribution center in Kanasa City, MO ( 1,170 miles). The telephones are packaged into cases, the cases are palletized and the pallets are loaded onto a semi- trailer
Phone Dimensions: 8"X6"X6" Current # of phones per case: 6
Case Dimensions: 16" X 14" X 14" Current # of cases per pallet: 28
Full pallet Dimesions: 92,160 cu inches Current # pallets loaded/truck: 40
Trailer dimensions: 40' X 8' X 8' and has space for 48 fully loaded pallets
[1 cubic foot= 1,728 cubic inches]
Using the information above, answer the following( show calculations)
%
%
$
$
The current case space utilization is ( % of a case occupied by phones)%
The current pallet space utilization is ( % of a pallet occupied by cases)%
The current truck pallet space utilization is ( % of truck pallet space occupied by pallets) % Current truck space utilized by the product( % of total truck space occupied by phones) % Assume the truck is operated at $1.07/mile. What is the transport cost per phone to MO? $ If a more effiecent case could be developed for a cost increase of $.03/phone which doubled the # of phones per truck load, the savings or loss per phone would be? And the savings or loss per year would be?$
$
Explanation / Answer
Volume of 6 phones = 8"X6"X6" X6 = 1728 cu inches
VOlume of one case=16" X 14" X 14" = 3136 cu inches
The current case space utilization is ( % of a case occupied by phones) = 1728/3136= 55.1%
Volume of 1 pallet= 92,160 cu inches
28 cases volume = 28* 3136 = 87,808 cu inches
The current pallet space utilization is ( % of a pallet occupied by cases) = 87808/92160= 95.27%
The current truck pallet space utilization is ( % of truck pallet space occupied by pallets) = volume of 40 pallets/volume of trailer = 92160*40/ (40*8*8*12*12*12) = 83.33%
Number of phones per trailer = 40* 28* 6 = 6720 phones
Current truck space utilized by the product( % of total truck space occupied by phones) = (40*8*8*12*12*12)/(6720*8*6*6)
Total distance = 1170 miles
Total cost of shipment = 1170* 1.07 = $1251.9
Transport cost per phone = 1251.9/6720 = $ 0.186
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