Bowie State University Global Transportation Management Discussion

Please answer the following questions and show working on a piece of paper.

1) A firm has decided to build a warehouse to handle product received from two suppliers and destined for three retail locations. Rates, prices, and shipment quantities are shown below:

Supplier	Trans. rate/ton/mile	Supplier price/ton	Tons
A	1.50	250	500
B	2.00	100	1500

Market	Trans. rate/ton/mile	Market price/ton	Tons
X	1.00	400	500
Y	3.00	300	1300
Z	2.50	250	400

Assuming that all distances are in miles, use the following graph to determine the location that minimizes transportation costs:

Is your answer the best location for the warehouse? Explain why or why not.

2) The shipper is located in Oakland, CA, and the receiver islocated in New Orleans, LA. The shipment is 200 boxes of bronze powder(each box is worth $100). The actual value rate is $4 per 100pounds. The released value rate is $3 per 100 pounds and limits thecarrier’s liability to 25% of the loss. In each of the followingscenarios, the shipment was completely lost or destroyed.

a. Acommon carrier trucking company was selected based on the released value rateto transport the shipment, and the loss occurred at the carrier’s terminal asthe result of a handling mishap. The terms of sale are FOB origin point.

Who is responsible for filing the loss and damage claims?

How much is each party liable for?

Carrier:

Shipper:

Receiver:

b. Acommon carrier trucking company was selected based on the actual value rate totransport the shipment, and the loss occurred in route as the result of a theftat a truck stop. The terms of sale are FOB destination point.

Who is responsible for filing the loss and damage claims?

How much is each party liable for?

Carrier:

Shipper:

Receiver:

c. Acommon carrier trucking company was selected based on the actual value rate totransport the shipment, and the loss occurred in route as the result of atornado. The terms of sale are FOB origin point.

Who is responsible for filing the loss and damage claims?

How much is each party liable for?

Carrier:

Shipper:

Receiver:

3) Three separate shipments are being made from an Atlanta, GA supplier to our warehouse in Phoenix, AZ. Two loads, one weighing 200 pounds and the other weighing 500 pounds, are being shipped FOB origin point. The third, weighing 1000 pounds, is being shipped FOB destination point.

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a. Based on the following transportation rate information, what is the total amount that we (the receiver) will have to pay the carrier (13 points)?

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Origin Point	Destination Point	Minimum Charge	Less Than 500 lbs.	At Least 500 lbs.	At Least 1000 lbs.	At Least 2000 lbs.
Atlanta	Phoenix	34560	10595	10010	9925	9800
Phoenix	Atlanta	40870	15145	13860	13390	13205

Note: rates are given in cents per 100 lbs.; the minimum charge is given in cents per shipment.

b. Using these rates instead, what is the total amount that we (the receiver) will have to pay the carrier (11 points)?

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Origin Point	Destination Point	At Least 400 lbs.	At Least 1200 lbs.	At Least 2400 lbs.	At Least 4800 lbs.
Atlanta	Phoenix	9765	9510	9285	—–
Phoenix	Atlanta	—–	14275	13940	13520

Note: rates are given in cents per 100 lbs.

4) A manufacturer in Philadelphia, PA has three customers: one in Columbus, OH, one in Indianapolis, and one in St. Louis, MO. The Columbus customer has ordered 10,000 pounds, the Indianapolis customer has ordered 10,000 pounds, and the St. Louis customer has ordered 10,000 pounds. Applicable LTL and TL (minimum 20,000 pounds) rates are shown below:

	LTL	TL
Columbus	$4.5 per 100 pounds	$3 per 100 pounds
Indianapolis	$7.5 per 100 pounds	$6 per 100 pounds
St. Louis	$10.5 per 100 pounds	$9 per 100 pounds

The transportation carrier offers stop-off service with a stopping-in-transit charge of $300 per intermediate stop. Determine the lowest transportation cost alternative for the manufacturer to satisfy these three orders.

St. Louis <————- Indianapolis <————- Columbus <————- Philadelphia