Question.1373 - Smith Equipment has three separate shipments to customers all in the same city. The shipment weights are 20,000 lbs. 25,000 lbs., and 10,000 lbs. Smith Equipment's carrier charges $14 per hundredweight (cwt) if each shipment is sent separately. If the three shipments are consolidated at Smith Equipment's warehouse and sent in a single truck, the carrier charges $11 per cwt with a $500 consolidated delivery fee per destination added. Smith Equipment should
Answer Below:
consolidate the shipments at a savings of $150.More Articles From Operation Management
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