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Case 11-1 Let There Be Light Lampshade Company - Assignment Example

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This is arrived at by getting the volume of the one intermodal container and dividing by the volume of one shade. The number of shades for style B is 3916. This is got by dividing the volume of the one…
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Case 11-1 Let There Be Light Lampshade Company
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Case 11-1 Let There Be Light Lampshade Company

Download file to see previous pages... This is arrived at by dividing the volume of the packaged box by the volume of one intermodal container (Wood, & Murphy, 2011). The amount got is multiplied by the number of Shades that are contained in each package boxes which in this case for the style C is 10. Again it is should be noted that the considerations made here are after the looking into the possible cost benefit analysis in terms of full truck load and the less than truck load issues n the shipments.
The total costs of delivering style A shades are $ 13,512. This is disintegrated into package cost which is $ 1632, the cost of manufacturing of the shades which is $ 10,880, the cost of transporting each container which stands at $ 1000. All these are encompassed into one whole shipment cost of $ 13, 512. The delivery costs for the style B shades stands at $ 21,885.60. This is split into package cost of 1305.60; there is also the cost of shades manufacture which stands at $ 19,580 and lastly the container shipment cost which is $ 1000 (Wood, & Murphy, 2011). Thirdly the delivery cost of the style C shades stands at $ 42,126.40. This is divided into three sets of costs which include; the package costs which stands at $ 1958.40, there is also the cost of manufacturing the shades which stands at $ 39168. The cost of shipment of the container follows with the tune of $ 1000.
It is imperative to note that as these calculations are presented, there is high inculcation of the fact that there is a high level of opportunity cost that have been forgone in order to come up with such solutions. This entails the restriction on the amount of pound that should not be exceeded when transporting a shipment of container across the ocean. This has created the impediment for the use of the container especially the containers that will have the style C shades (Chopra, and Meindl, 2013). As it stands now, the limit has to be set on the amount of shades that should be transported for the ...Download file to see next pagesRead More
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