Use Scenario 14.1 to determine the least expensive transportation option if the Onion Shack purchases 480,000 bags of Vidalia onions each year.

A) Mashburn Rail
B) Sylvia Express
C) Anita Enterprises
D) Smith Trucking

Question

Hayley Martino · Accepted Answer

Final Answer : D, Explanation :  To determine the least expensive transportation option, we need to calculate the total cost of transportation for each carrier and choose the one with the lowest cost.Let's start by calculating the total cost of transportation for each carrier:- Mashburn Rail:- Quantity shipped per shipment = 2000 bags (since we purchase in lots of 3000 bags and Mashburn Rail ships in cwt, which is 100 pounds, we need to convert: 3000 bags = 30,000 pounds = 150 cwt; we choose a shipment size of 200 cwt to stay below Mashburn Rail's limit)- Number of shipments per year = 480,000 bags / 2000 bags per shipment = 240 shipments- Shipping cost per cwt = $2.10- Transit time = 5 days- Total transportation cost per year = 240 shipments * 200 cwt per shipment * $2.10 per cwt = $100,800- Sylvia Express:- Quantity shipped per shipment = 1000 bags (we choose a smaller shipment size to stay below Sylvia Express's limit)- Number of shipments per year = 480,000 bags / 1000 bags per shipment = 480 shipments- Shipping cost per cwt = $2.35- Transit time = 3 days- Total transportation cost per year = 480 shipments * 50 cwt per shipment * $2.35 per cwt = $56,160- Anita Enterprises:- Quantity shipped per shipment = 2500 bags (we choose a larger shipment size to take advantage of Anita Enterprises's higher limit)- Number of shipments per year = 480,000 bags / 2500 bags per shipment = 192 shipments- Shipping cost per cwt = $1.35- Transit time = 3 days- Total transportation cost per year = 192 shipments * 100 cwt per shipment * $1.35 per cwt = $25,920- Smith Trucking:- Quantity shipped per shipment = 2500 bags- Number of shipments per year = 480,000 bags / 2500 bags per shipment = 192 shipments- Shipping cost per cwt = $1.00- Transit time = 3 days- Total transportation cost per year = 192 shipments * 100 cwt per shipment * $1.00 per cwt = $19,200Therefore, the least expensive transportation option is Smith Trucking with a total transportation cost of $19,200 per year.

Use Scenario 14.1 to determine the least expensive transportation option if the Onion Shack purchases 480,000 bags of Vidalia onions each year.

A) Mashburn Rail
B) Sylvia Express
C) Anita Enterprises
D) Smith Trucking

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Learning Objectives

Related questions

Use Scenario 14.1 to determine the least expensive transportation option if the Onion Shack purchases 480,000 bags of Vidalia onions each year.A) Mashburn RailB) Sylvia ExpressC) Anita EnterprisesD) Smith Trucking

Definitions

Learning Objectives

Learning Objectives

Related questions

Use Scenario 14.1 to determine the least expensive transportation option if the Onion Shack purchases 480,000 bags of Vidalia onions each year.

A) Mashburn Rail
B) Sylvia Express
C) Anita Enterprises
D) Smith Trucking