Truck Rate Determination You are the shipping manager for Division Manufacturing
ID: 421156 • Letter: T
Question
Truck Rate Determination You are the shipping manager for Division Manufacturing, a small water craft manufacturer based in Giddings, TX. You ship product from Giddings to your primary distribution warehouse in Wilmington, NC Use Tables 1 and 2 to answer questions 1 - 5. All shipments are from the manufacturing site in Giddings to the warehouse in Wilmington. NOTE: remember you are working in hundred weight (cwt), so watch where your decimal point belongs HINT: remember bump/phantom weight! 1. Determine the lowest cost possible to ship 2,300 lbs of Deluxe outboard motors. 2. Determine the lowest cost possible to ship 450 lbs of Economy small craft anchors. 3. Determine the lowest cost possible to ship 6,000 lbs of Runabout life vests. 4. Determine the lowest cost possible to ship 4,100 lbs of Standard outboard motors. 5. Determine the lowest cost possible to ship 1,800 lbs of Runabout life vests.Explanation / Answer
Answer:
The process for calculating the lowest rates are as below.
Refer the calculation sheet as below for all the options as
Answer Type Weight Lowest Rate =Weight (3500) * Rate (13.5) Remarks 1 Delux Outboard Motos 2300 $47,250.00 Minimum weight required is 3500 lbs. Hence we ned to pay for minimum weight of 3500 instead of 2300 lbs. Answer Type Weight Lowest Rate =
Weight (4500) * Rate (9.12) Remarks 2 Economy Small Craft Anchors 450 $41,040.00 Minimum weight required is 4500 lbs. Hence we ned to pay for minimum weight of 4500 instead of 450 lbs. Answer Type Weight Lowest Rate =
Weight (6000) * Rate (6.27) Remarks 3 Runabout Life Vest 6000 $37,620.00 Minimum weight required is 5800 lbs. Hence we need to pay for actual weight of 6000 lbs. Answer Type Weight Lowest Rate =
Weight (4100) * Rate (6.27) Remarks 4 Standard Outboard Motors 4100 $25,707.00 Minimum weight required is 4000 lbs. Hence we need to pay for actual weight of 4100 lbs. Answer Type Weight Lowest Rate =
Weight (5800) * Rate (6.27) Remarks 5 Runabout Life Vest 1800 $36,366.00 Minimum weight required is 5800 lbs. Hence we ned to pay for minimum weight of 5800 instead of 1800 lbs.
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