Every week BosssMustang of Oakland, California, receives shipments from 5 differ

Question

Every week BosssMustang of Oakland, California, receives shipments from 5 different suppliers in the Los Angeles area. Each suppliers order weighs, on average 550 pounds. A direct truck shipment from Los Angeles to Oakland costs $900 A Los Angeles 3PL provider has offered to run a consolidation warehousing operation for BosssMustang. The 3PL provider would pick up the shipments from each supplier, process them, and put them on a single truck bound for Oakland. The pickup fee would be $50 per supplier, and the warehousing cost would be $75 per hundred-weight. The direct truck shipment cost would be the same as before, $900 a. Assume that each truck is capable of carrying 12,500 pounds. The total cost of the single-order shipments from all of BosssMustang's suppliers is $ 4500 per week. (Enter your response as a whole number.) The average truck utilization level for the single-order shipment option is D% Enter yourreponse our to the nearwat whate number,

Explanation / Answer

Supplier A total cost = Price* Demand + Packing cost per unit*No of units + Inland Freight cost

= 1250*150 sets + 1.5*1250 + 1000 = 187500 + 1875 + 1000 = 190375

Cost per unit = 190375/1250 =152.3

Monthly cost for supplier = 152.3

Total landed cost per month =190735

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