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Question: Suppose you have three shipments to make. One shipment has a weight of 3,000 pounds, the second weighs 7,000 pounds, and the third weighs 14,000 pounds. The transportation rates are: $18/cwt. for shipments of 1,000-5,000 pounds, $16/cwt. for 5,000-10,000 pounds, and $14/cwt. for shipments over 10,000 pounds. For consolidated shipments, there is a charge of $200.00 per stop. How much will you save if you choose to consolidate the shipments rather than ship each individually?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92757837

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