Problem 3: Transportation Costing (8 points) You have a shipment with the follow

Question

Problem 3: Transportation Costing (8 points)

You have a shipment with the following characteristics.

Size: 18 pallets

Weight: 15,000 pounds

Distance: 2000 miles

Mode:

LTL

Solo Truckload

Rail

Airfreight

Rate:

$18/hundred-weight

$1.25/mile

$0.90/mile

$2.50/pound

A) What is the cost to send this shipment direct via LTL? (2 points)

B) What is the cost to send this shipment direct via Solo Truckload? (2 points)

C) What is the cost to send this shipment direct via Rail? (2 points)

D) What is the cost to send this shipment direct via Airfreight? (2 points)

Mode:

LTL

Solo Truckload

Rail

Airfreight

Rate:

$18/hundred-weight

$1.25/mile

$0.90/mile

$2.50/pound

Explanation / Answer

a. 100 units of weight = $18. Therefore 15000 units of weight = $2700

b. 1 mile = $1.25. Therefore 2000 miles = $2500

c. 1 mile = $0.9. Therefore 2000 miles = $1800

d. 1 pound = $2.50. Therefore 15000 pounds = $37500

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