Bowie State University Global Transportation Management Discussion
Question Description
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 thecarriers 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 carriers 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 |
Destination |
Minimum |
Less Than |
At Least |
At Least |
At Least |
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 |
Destination |
At Least |
At Least |
At Least |
At Least |
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
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