Practice Problems | Week 10: Transportation II - Freight Transportation Analysis and Case Study | Supply Chain Fundamentals | edX

6/6/21 13:30

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PP2 $ Bboots
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Part 1
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Laura is hired as a logistics manager for BBoots, New York division, which manufactures trendy ladies boots. The demand for all their
varieties put together is 500,000 per year with 100 fitting on a pallet.

The first task of Laura is to improve the transportation cost. She decides to analyze end to end of the distribution network. She
collected the following information: the boots are manufactured at a factory that is 100 miles from the nearest warehouse. From the
warehouse, it is taken to the nearest stores for sales. The loading costs for the trucks at the factory is $40 per shipment plus $5 per
pallet. Unloading costs at warehouse are $30 per shipment and $3 per pallet. Trucking costs are $3 per mile and each truck can carry
upto 40 pallets. Holding cost is $3000 per pallet per year. The stores which are handled by 3rd party vendors, arrange for pick-up from
the warehouse to the stores and so does not come under BBoots's costs.

What is the optimal quantity per shipment?

Round your answer to the nearest integer.

35 !

35

Submit You have used 1 of 3 attempts

! Correct

Part 2
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What is the total cost per year?
Round your answer to nearest integer.

145357 !

145357

Submit You have used 1 of 3 attempts

! Correct

Part 3
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Practice Problems | Week 10: Transportation II - Freight Transportation Analysis and Case Study | Supply Chain Fundamentals | edX 6/6/21 13:30

0 points possible (ungraded)

If FTL is to be considered what is the total cost per year?
Round your answer to nearest integer.

146250 ! Answer: 146250

146250

Explanation
The Q here will be 40
The total cost per year under FTL will be:
𝑆
Variable loading/unloading cost * S T (fixed loading/unloading cost per shipment + fixed transportation cost per shipment) * 𝑄 +
𝑄 5000 40
holding cost *
2
= (8) (5000) + (70 + 300) ∗ 40
+ (3000) ∗ 2
= $146250

Submit You have used 1 of 3 attempts

" Answers are displayed within the problem

Part 4
0 points possible (ungraded)
By how much would the fixed cost per shipment have to be reduced to get the FTL value to reach the optimal shipment total cost? Is this
feasible?
Round your number to two decimal places (ex.9 19.46 for 19.456@.

7 !

Submit You have used 1 of 3 attempts

! Correct

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Part 4 +
discussion posted 8 days ago by Paulin101
$
If you round the Q* to 35 the answer shuold be 9.68
%

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Practice Problems | Week 10: Transportation II - Freight Transportation Analysis and Case Study | Supply Chain Fundamentals | edX 6/6/21 13:30

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arun_kh +
4 days ago
%

But why are you rounding off?. We are asked to calculate at Full truck load so we will take QK40. I hope it
helps.

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