Kc Computers Kkc Computers - Term Paper

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Truck Freight Costs = $3,693 LIT to LIT = 20 units * $6/100lbs = 120

LIT to DEN = 40 * 6 + 40 * 12 = 720

LIT to MSP = 20 * 6 + 20 * 13 = 380

LIT to HUF = 15 * 6 + 15 * 9 = 225

LIT to DTW = 55* 6 + 55 * 13 = 1045

LIT to ATL = 45 * 6 + 45 * 9 = 675

LIT to HOU = 33 *6 + 33 * 10 = 528

3. Consolidation Costs = $228

4. Lost Sales = $978

Third day: LIT = 20 units * $100/unit * 0.005 = 10

Fourth day: HUF + HOU + ATL = 93 * 100 * 0.01 = $93

Fifth day: DEN + DTW = 95 * 100 * 0.05 = $475

Sixth day: MSP = 20 * 100 * 0.2 = $400

Total costs = $7,410 + $3,693 + $228 + $978 = 12,309

Alternative 2

The second alternative would be to ship by air 113 computers from Los Angeles to Little Rock and then by truck to Houston, Atlanta and Terre Haute. The remaining demand of 115 would de...

...

Air freight cost, LAX to LIT = 113 * 46 = $5,198
2. Truck Freight Costs = $1,350

LIT to LIT = 20 units * $6/100lbs = 120

LIT to HOU = 120 + 33 * 10 = 450

LIT to ATL = 120 + 45 * 9 = 525

LIT to HUF = 120 + 15 * 9 = 255

3. Consolidation Costs = $113

4. Lost Sales: Second day for LIT and third day for HOU, HUF and ATL = (33 * 100 + 45 * 100 + 15…

Sources Used in Documents:

References: Cook, R.L., Central Michigan University, Case 8: KKC Computer Consolidation


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