LM.97 Each week the ABC Company, from Albuquerque, NM receives58 separate LTL shipments from a number of different suppliers inthe Dallas, TX area. Each parcel shipment from Dallas toAlbuquerque costs $102.
Alternate Shipping Method
A Dallas-based 3PL provider has approached ABC Company with aproposal to run a consolidation operation where they would pick upthe supplier shipments each week and load them on to one truck forshipment to Albuquerque. The relative data for this alternativeshipping method are as follows:
Local pickup fee = $31 pickup fee
Average weight per supplier shipment = 128 lbs.
Local consolidation fee = $37 per hundred-weight
Consolidated TL shipment from Dallas to Albuquerque = $987
What is the total cost of shipping the separate parcel shipmentsfrom the Dallas-area suppliers to the ABC company location inAlbuquerque? (Display your answer as a wholenumber.)
How much money would ABC Company saveto hire the 3PL to pickup the shipments from each supplier andconsolidate them into one bulk shipment to Albuquerque? (Displayyour answer as a whole number.)
At what cost for local pickup does the cost of the two optionsbecome the same? (Display your answer to twodecimal places.)
