Let There Be Light Lamp Shade Company

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
Shades$ 4.005,400.00$ 21,600.00
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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