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Operations Management: Processes and Supply Chains, 12th Edition
book

Operations Management: Processes and Supply Chains, 12th Edition

by Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
January 2018
Intermediate to advanced content levelIntermediate to advanced
480 pages
236h 9m
English
Pearson
Content preview from Operations Management: Processes and Supply Chains, 12th Edition

Solved Problem 2

Kayco Stamping in Ft. Worth, Texas, ships sheet metal components to a switch box assembly plant in Waterford, Virginia. Each component weighs approximately 25 pounds, and 50 components fit on a standard pallet. A complete pallet ships as freight class classification 92.5. Use Table 15.2 to calculate the shipment cost for the following demand quantities and calculate the shipping cost per component.

  1. 3 pallets

  2. 13 pallets

Solution

  1. At 3 pallets, or 150 pieces, the shipping weight=150×(25 pounds )=3,750 pounds.

    At a freight classification of 92.5, using Table 15.2, the break-even weight=50(28.64 )/37.56 =38.13 or 3,813 pounds, thus the shipment does not qualify for the lower rate.

    Total shipping cost=37.5(37.56 )=$1,408.50.

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Publisher Resources

ISBN: 9780134741062