1. BossMustang
Part 1: Every week, BossMustang of Oakland, CA receives shipments from ten (10) different suppliers in the Los Angeles area. Each supplier's order weighs, on average, 500 lbs. A direct truck shipment from Los Angeles to Oakland costs $800.
A) Determine how much it costs BossMustang each week to accept direct, single-order shipments from all its suppliers. ( 5 Points )
B) Determine the per-truck utilization assuming each truck is capable of carrying 10,000 lbs.
Part 2: A Los Angeles 3PL has offered to run a consolidation warehouse operation fo BossMustang. The 3PL provider would pick up the shipments from each supplier, process them, and put them on a single truck bound for Oakland. The pick up fee would be $100 per supplier, and the warehousing cost would be $55 per hundred-weight. The direct truck shipment cost would be the same as before, $800.
C) Determine how much it would cost BossMustang each week to use the consolidation warehousing option.
Warehousing fee:
Pick up fee:
Shipping fee:
Total:
D) Determine the per-truck utilization assuming each truck is capable of carrying 10,000 lbs.