LM.

53 In an effort to reduce costs, many regional power companies want to lower their safety stock of electricity
transformers. To support this desire, a large transformer OEM will store safety stock of transformers in a FedEx
warehouse in Memphis, Tennessee in order to insure quick air delivery to any of these is power companies should
the need arise. This collaboration will result in lower overall inventory across the supply chain, making it possible
for all parties to lower their costs.

The OEM has signed up 15 power companies on this rapid replenishment program. On average, each of these
power companies used to hold 36 transformers in their safety stock. In total, how many transformers would these
companies hold? (Display your answer as a whole number.) 

540

To maintain the same service level after this transition, how many units (transformers) would the OEM need to
hold (or pool) in the FedEx warehouse? (Display your answer as a whole number.)

139

After making this change for these power companies and OEM, by how many units (transformers) will inventory go
down? (Display your answer as a whole number.)

401

By what percentage would their inventory decrease by consolidating their inventory from the dealerships into
the warehouse? (Write your answer as a percentage and display your answer to the nearest whole number.)

287%
Power Companies 15
Safety Stock 36
Total Transformers 540
New # of Warehouses 1

New SS 139
Difference 401
Percent change 287%
M.61 Boxmart needs to set up a new hub to distribute to a number of stores in four cities. The table below gives the map
coordinates and number of weekly shipments for each city.

  City      X Coordinate       Y Coordinate      Shipments   X * Demand Y*Demand

A 6.6 1.5 19 125.4 28.5
B 5.3 0.8 47 249.1 37.6
C 3.3 6.5 12 39.6 78
D 2.6 1.7 20 52 34
4.76 1.82 98 466.1 178.1
What should be the center of gravity x-coordinate for the new hub? (Display your answer to two decimal places.)

4.76

What should be the center of gravity y-coordinate for the new hub? (Display your answer to two decimal places.)

1.82
 table below gives the map

wo decimal places.)

wo decimal places.)
LM.81 Monkey's Fist is trying to determine where to source their product. In the past, they have sourced solely domestically, but
international suppliers. Next month's expected demand is 10,925 units. There are three suppliers to choose from, one domestic,
below contains all relevant cost data. Note that both international shipping and inland freight costs are a flat fee for a shipment o
whether shipping one unit, one thousand units, or 16,000 units, the cost is the same (the flat fee).

Demand 10925
Criteria   Domestic     Foreign 1     Foreign 2  
Total Domestic
 Price/Unit  $4.51 $3.54 $3.60 $49,271.75
 Packaging Cost/Unit  $0.08 $0.23 $0.23
$874.00
 International
Shipping/Entire $0 $580 $690
Shipment   $0.00
 Inland Freight/Entire
$310 $280 $340
Shipment
$310.00
$50,455.75

What is the total landed cost for the domestic supplier? (Display your answer as a whole number.)

$50,456

What is the total landed cost for foreign supplier 1? (Display your answer as a whole number.)

$42,047

What is the total landed cost for foreign supplier 2? (Display your answer as a whole number.)

$42,873

Suppose actual demand is only 79% of expected demand.  What would be the total landed cost of the domestic supplier? (Displa

$39,925

At what volume of monthy demand would the total cost be the same for the domestic supplier and foreign supplier 1? (Display yo

671 goalseek
ast, they have sourced solely domestically, but they have sufficiently grown to look at
three suppliers to choose from, one domestic, the other two offshore. The table
and freight costs are a flat fee for a shipment of up to 16,000 units of demand—
me (the flat fee).

Percentage 79% percentage demand 8630.75

Total Foreign 1 Total Foreign 2 Domestic

$38,674.50 $39,330.00 $38,924.68

$2,512.75 $2,512.75 $690.46

$0
$580.00 $690.00

$310
$280.00 $340.00
$42,047.25 $42,872.75 $39,925.14

whole number.)

ole number.)

ole number.)

al landed cost of the domestic supplier? (Display your answer as a whole number.)

stic supplier and foreign supplier 1? (Display your answer as a whole number.)

Demand 671
  Foreign
Criteria   Domestic     Foreign 1  
2   Total Domestic
 Price/Unit  $4.51 $3.54 $3.60 $3,025.00
 Packaging
$0.08 $0.23 $0.23
Cost/Unit  $53.66
 International
Shipping/Entire $0 $580 $690
Shipment   $0.00
 Inland Freight/Entire
$310 $280 $340
Shipment
$310.00
$3,388.66
Difference $0.00
 Percentage 79% percentage 529.87805

Total Foreign 1 Total Foreign 2 Domestic

$2,374.39 $39,330.00 $38,924.68

$154.27 $2,512.75 $690.46

$0
$580.00 $690.00

$310
$280.00 $340.00
$3,388.66 $42,872.75 $39,925.14
LM.91 XYZ Company is rethinking the way it ships to its 61 customers in another city 255 miles away.

Current Shipping/Delivery Method

They currently hire an LTL (less-than-truckload) carrier to pick up and deliver these shipments. Each customer
order shipped via LTL carrier costs $148. 

Alternate Shipping/Delivery Method

A 3PL (third-party logistics provider) has approached XYZ Company and suggested that they make full truckload
(TL) shipments from their facility to the 3PL's warehouse in the customers' city. The 3PL would then break the bulk
shipment (TL or truckload shipment) into individual customer orders to be shipped locally by an LTL carrier. The
relative data for this alternate shipping method are as follows:

Full TL shipment cost (255 miles) = $845

Average weight per customer order = 510 lbs.
Warehouse break-bulk fee (per 100 lbs., a.k.a. per "hundred weight") = $12
Local LTL delivery fee (per customer order) = $43

What is the total cost of delivering to all customers via LTL carrier (current method)? (Display your answer as
a whole number.)

$9,028

How much money would XYZ company save by using the alternate shipping/delivery method for delivery to all
customers? (Display your answer as a whole number.)

$1,827

At what number of customers would the cost of these two methods be the same? (Display your answer as
a whole number.)

19
Customers 61 Customers 19.292237
Miles away 255 Miles away 255
LTL Cost $148.00 LTL Cost $148.00
Total Cost $9,028.00 Total Cost $2,855.25

totals
FTL 255 $845.00 $845.00 FTL 255
Avg weight/order 510 31110 Avg weight/order 510
Break-bulk fee 100 $12.00 $3,733.20 Break-bulk fee 100
LTL fee $43.00 $2,623.00 LTL fee
Total 3PL cost $7,201.20 Total 3PL cost
Difference $1,826.80 Difference
 totals
$845.00 $845.00
9839.0411
$12.00 $1,180.68
$43.00 $829.57
$2,855.25
$0.00
LM.97 Each week the ABC Company, from Albuquerque, NM receives 82 separate LTL shipments from a number
of different suppliers in the Dallas, TX area. Each parcel shipment from Dallas to Albuquerque costs $139.

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 = $33 pickup fee

Average weight per supplier shipment = 135 lbs.
Local consolidation fee = $51 per hundred-weight
Consolidated TL shipment from Dallas to Albuquerque = $1,090

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.)

$11,398

How much money would ABC Company save 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.)

$1,956.30

At what number of shipments is the cost the same for the two options? (Display your answer as a whole number.)

29
 ipments from a number
que costs $139. shipments 82 $11,398.00
Shipment cost $139.00
Consolidations fee 100

Totals
solidation operation Local pickup fee $33.00 $2,706.00
k for shipment to Avg weight/shipment 135 11070
Local consolidation fee/100 $51.00 $5,645.70
Consolidated TL shipment cost $1,090.00 $1,090.00
Total Cost $9,441.70
Difference $1,956.30

liers to the ABC company

m each supplier and

e number.)

er as a whole number.)
shipments 29.340511 $4,078.33
Shipment cost $139.00
Consolidations fee 100

Totals
Local pickup fee $33.00 $968.24
Avg weight/shipment 135 3960.9690444
Local consolidation fee/100 $51.00 $2,020.09
Consolidated TL shipment cost $1,090.00 $1,090.00
Total Cost $4,078.33
Difference $0.00