Question: LM.96 Each week the ABC Company, from Albuquerque, NM receives 120 separate parcel shipments from a number of different suppliers in the Dallas, TX area. Each parcel shipment from Dallas to Albuquerque costs $60.
Alternate Shipping Method A Dallas-based 3PL provider has approached ABC Company with a proposal to run a consolidation operation where they would pick up the supplier shipments each week and load them on to one truck for shipment to Albuquerque.
The relative data for this alternative shipping method are as follows: Local pickup fee = $25 pickup fee Average weight per supplier shipment = 80 lbs.
Local consolidation fee = $21 per hundred-weight Consolidated TL shipment from Dallas to Albuquerque = $795
What is the total cost of shipping the separate parcel shipments from the Dallas-area suppliers to the ABC company location in Albuquerque?(Display your answer as a whole number.)
How much money would it cost ABC Company to hire the 3PL to pickup the shipments from each supplier and consolidate them into one bulk shipment to Albuquerque? (Display your answer as a whole number.)
At what number of shipments does is the cost the same for the two options? (Display your answer to two decimal places.)