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Please show all work, thank you! Astro Industries of Minneapolis, Minnesota, mak

ID: 463760 • Letter: P

Question

Please show all work, thank you!

Astro Industries of Minneapolis, Minnesota, makes weekly shipments to 25 customers in the Dallas area. Each customer's order weighs, on average, 2,000 pounds. A direct truck shipment from Minneapolis to Dallas costs $2,100. The maximum load per truck is 30,000 pounds. a. The total cost for Astro to make direct, single-order shipments to all of its customers is per week. (Enter your response as a whole number) The average truck utilization level for the single-order shipment option is (Enter your response rounded to one decimal place.) b. Suppose a Dallas-based warehousing firm has agreed to run a break-bulk warehousing operation for Astro at a cost of $80 per hundred-weight. Local deliveries to each customer would tack on another $250 per customer per week. The total cost of the break-bulk warehousing option is per week. (Enter your response as a whole number.) By going with a break-bulk solution, Astro could save per week. (Enter your response as a whole number. C. The warehousing cost would need to be greater than or equal to per hundred-weight for the break-bulk option to be no more attractive than direct shipments (Enter your response rounded to the nearest whole number)

Explanation / Answer

1) 4200$

Truck utilization: 83.33%

2).6250

Savings: 2050

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