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# Let There Be Light Lamp Shade Company

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Let There Be Light Lamp Shade Company

1.How many style A shades can be loaded into an intermodal container?

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The area of an intermodal container (8×8.5×40) is: 2,720 cubic feet. Each box of style A is 12 x 12x 12 inches, converted in feet is 1x1x1 feet. However, the top 6 inches (0.5 feet) has no use, so the calculation is= 8x8x40= 2,560. The intermodal container will hold 2,560 style A lamp shades (it would weigh less than 44,000 pounds)

2.How many style B shades can be loaded into an intermodal container?

Style B is shipped nested in packages of six with a dimension of 12x12x48 inches, converted to feet is 1x1x4 feet.

The top 6 inches has no use, so the calculation is= 8x8x10= 640 packages. The intermodal container will hold 640 packages with 6 lamp shades in each package, which makes 3840 style B shades per intermodal container (it would weigh less than 44,000 pounds)

3.How many style C shades can be loaded into an intermodal container?

Style C is shipped nested in packages of 10 with a dimension of 12x12x50 inches, converted to feet is 1x1x4.

2 feet. The top 2.2 ft has no use, so the calculation is= 8x8x9= 576 packages. The intermodal container will hold 576 packages with 10 lamp shades in each package, which makes 5760 style B lamp shades per intermodal container but the weigh per package is 101 pounds (576*101= 58176) which exceeds the max weight of 44,000 pounds. The maximum package of Style C that an intermodal container should carry is 435 packages of 10 style C shades (4350 Style C shades).

4.What are the total costs of delivering the style A shades to the port of importation?

The total cost of delivering style A shades is \$ 31, 366.80, the explanation of how this number is calculated is shown in the following charts:

Style ACost (unit)# lights#Intermodal
ContainersTotal Cost
Package\$ 0.605,400.00\$ 3,240.00
To Oakland\$ 1,000.003\$ 3,000.00
Cost\$ 27,840.00

Insurance2%\$ 27,840.00\$ 556.80

To Overseas* Cubic feet # 40 cubic ft usedCost per tonTotal Cost Container 1256064\$22\$1,408
Container 2256064\$22\$1,408
Container 32807\$22\$154
Overseas cost\$2,970

Total Cost= \$27,840.00 + \$556.80 + \$2,970.00= \$31,366.80

*To Overseas: The weight of every 40 cubic feet is less than 2000 pounds but the ocean conference used a measurement ton that indicated that for bulky loads every 40 cubic feet would equal 1 ton (2000 pounds) for rate-making purposes.

5.What are the total costs of delivering the style B shades to the port of importation?

The total cost of delivering style B shades is \$ 33,396.00; the explanation of how this number is calculated is shown in the following charts:

Style BCost (unit)# lights# Package#Intermodal
ContainersTotal Cost
Shades \$ 5.00 5,400.00 \$ 27,000.00 Package \$ 2.00 900.00 \$ 1,800.00
To Oakland \$ 1,000.00 2 \$ 2,000.00
Cost \$ 30,800.00

Insurance2% \$ 30,800.00 \$ 616.00

To Overseas # of Packages# Package in 40 cubic feet# 40 cubic ft usedCost per tonTotal Cost Container 16401064\$22 \$1,408
Container 22601026\$22 \$572
Overseas Cost \$1,980

Total Cost= \$30,800.00 + \$616.00 + \$1,980.00= \$33,396.00

*To Overseas: The weight of every 40 cubic feet is less than 2000 pounds but the ocean conference used a measurement ton that indicated that for bulky loads every 40 cubic feet would equal 1 ton (2000 pounds) for rate-making purposes.

6.What are the total costs of delivering the style C shades to the port of importation?

The total cost of delivering style C shades is \$ 38,016.40; the explanation of how this number is calculated is shown in the following charts:

Style cCost (unit)# Lights# Package#Intermodal
ContainersTotal Cost
Shades \$ 6.00 5,400.00 \$ 32,400.00 Package \$ 3.00 540.00 \$ 1,620.00 To Oakland \$ 1,000.00 2 \$ 2,000.00
Cost \$ 36,020.00

Insurance2% \$ 36,020.00 \$ 720.40

To Overseas # Total Packages # Packages in 40 cubic feet# 40 cubic feet usedCost per tonTotal Cost Container 14359.546\$22 \$1,012
Container 21059.512\$22 \$264
Overseas Cost \$1,276

Total Cost= \$36,020.00 + \$720.40 + \$1,276.00= \$38,016.40

*To Overseas: The weight of every 40 cubic feet is less than 2000 pounds but the ocean conference used a measurement ton that indicated that for bulky loads every 40 cubic feet would equal 1 ton (2000 pounds) for rate-making purposes.

7.Which style would you recommend? Why?

I would recommend style A because the cost is 17% cheaper compared to style C and 6% cheaper compared to style B. Even though style A uses three containers and the Overseas rate is higher, the manufacturing, packaging, and the insurance of shades A costs less than the other styles, making a big difference in the total cost.

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