Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley

Exercise 19

Suppose Jones Company has orders from three customers located in the same market area.One order has a total weight of 4,000 pounds, the second weighs 8,000 pounds, and the third weighs 14,000 pounds.The transportation carrier quotes a freight rate of $20.00 per hundredweight (or cwt.)for direct shipment to the customer for shipments weighing 1,000 to 4,999 pounds, $18.00 per cwt.for orders weighing 5,000 to 9,999 pounds, and $16.00 for shipments weighing between 10,000 and 15,000 pounds.Alternatively, the carrier's rate for shipments weighing more than 20,000 pounds is $13.50 per cwt.However, if the orders are combined into one shipment, the carrier will charge $200 for each stop it is required to make.Should Jones consolidate the three shipments?