Extreme Hats wanted to bid on a huge festive event of which 6,200 large party ha

Question

Extreme Hats wanted to bid on a huge festive event of which 6,200 large party hats would be needed. The Style A hats were cylinders that were 11 inches high and 12 inches in diameter and were packed into boxes that were 12 by 12 by 12 inches. The packages cost 80 cents each and weighed 1 pound each. The hats cost $5.00 each to manufacture. They weighed 9 pounds each and 10 pounds packaged. They would be shipped to the Port of Baltimore. The land rate to Baltimore was $2000 per 40 foot container, without regard to weight, although the weight of the load could not exceed 36,000 pounds per loaded container because of highway weight restrictions. The interior dimensions of the intermodal container were 8 feet wide by 8.5 feet high by 40 feet long. Ocean rates from Baltimore to the overseas port were $25 per ton (2,000 pounds), except that the ocean conference used a measurement ton that indicated that for bulky loads every 40 cubic feet would equal 1 ton for rate-making purposes. (That is, a shipment weighing, say 130 pounds and occupying 80 cubic feet would cost as though it weighed 4,000 pounds.) Insurance costs were 5 percent of the value of the shipment ready to be loaded aboard ship in Baltimore. Extreme Hats decided to custom build and came up with an alternative cone-shaped hat design. Style B hats cost $10 per hat to manufacture and could be shipped nested in packages of 8. The package dimensions were 12 by 12 by 48 inches, and when holding 8 hats a package weighed 75 pounds. Each package cost $5, and this included padding between the hats.

Part A: Extreme Hats is debating whether to use private transportation to get the intermodal containers to the port for this order. Based on information from the text, discuss advantages and disadvantages to private transportation.
Part B: How many of style A hats can be loaded in an intermodal container? How many style B hats can be loaded in an intermodal container?
Part C: What are the total costs of delivering Style A hats to the port of importation? What are the total costs of delivery for Style B hats to the port of importation? (Include all costs in tabular form)

Explanation / Answer

Part A: using the private transportation has some advantages and disadvantages:

Advantages:

1. Manageability own (more comfortable). Help in emergencies. Generally faster.

2. The shipping company expenses due to shipment and the weight of the container port baltimore hata be saved.

Disadvantages:

1. Ability to meet a violation, or an accident that may even cost you your life. You can steal it or scratch. More damaging to our planet.

2. The company is totally responsable for the transfer of hats.

Part B: 6200hats

-style A hats:

Firt, we need to know the volume of an intermodal container:

volume of an intermodal container= 8ftx8.5ftx40ft=2720ft3

the dimensions of a package in the case of hat (A) is 12inx12inx12in and we know that conversion 12in=1ft

so, the volume of a package assuming the package is completely square:

package volume=1ftx1ftx1ft=1ft3

now, How many of style A hats can be loaded in an intermodal container? well, we know that each package has one hat inside

number of hat=2720ft3 /(1ft3 /pack)= 2720packs=2720 hats

finally the number os container is= 6200has needed/(2720hats/container)= 2.28container=3containers

-style B hats:

the process is the same like above, but we already know the volume of an intermodal container

the dimensions of a package in the case of hat (B) is 12inx12inx48in and we know that conversion 12in=1ft

so, the volume of a package assuming the package is completely square:

package volume=1ftx1ftx4ft=4ft3

now, How many of style B hats can be loaded in an intermodal container? well, we know that each package has eight hats inside

number of hat=2720ft3 /(4ft3 /pack)= 680packs (but there are 8 hats in each package in this case)

number of hat= 680pack x 8 hats/pack = 5440hats

finally the number os container is= 6200has needed/(5440hats/container)= 1.14container=2containers

Part C: 6200hats

-style A hats:

cost per package: 0.80$/package

production cost: 5$/hat

weight of package: 10lb/pack or 10lb/hat (because there is one hat in each package)

Shipping Cost: 2000$/container (<36000lb/container) (25$/2000lb)

total cost= 0.80$/pack x 2720packs + 5$/hat x 2720hats + 2000$/container x 3 containers + 25$/2000lb x 10lb/pack x 2720pack = 22116$

weight in a container= 10lb/hat x 2720hats= 27200 lb (It is allowed because it bypasses the 36000 lb)

-style B hats: the process is almost the same but the difference is:

production cost: 10$/hat

weight of package: 75lb/package

cost per package: 5$/package

the total cost is calculated the same way. You are able to work out the cost right now.

I hope my explanation has been helpful.

Good luck!

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