Problem 11-3 The table below provides shipping rates for packages using UPS next

Question

Problem 11-3 The table below provides shipping rates for packages using UPS next day air or ground service options. The rates vary according to both the weight of the package and the distance of the shipment (larger numbered zones are farther away) Note that the zone number also indicates the number of days required to deliver a package using ground service. A transportation manager must ship orders of materias weighing three pounds each to destinations in each of the seven zones listed in the table. The daily inventory holding rate is $7.25 per day for all orders. The manager has decided to use next day air service for all shipments. Next Day Service Weight 1 Lbs $17.25 $20.75 $25.50 27.75 $ 3025 $31.25 $32.00 S 19.00 S 21.75 S 28.25 30.50 S 33.50 S 34.75 35.50 $21.25 $24.25 $33.50 36.25 S 39.50 $40.75 $41.75 S 22.00 S 25.25 S 36.00 39.00 S 42.75 44.00 45.00 $23.75 $28.25 $41.00 44.75 $49.25 $50.25 $51.25 S 24.50S 29.75 S 43.75 47.50 S 52.50 S 53.75 54.50 $2625 $32.50 $48.75 52.75 $58.00 $ 60.00 $ 60.75 S 27.00 S33.50 S 51.25 55.50 S 60.75 S 63.00 63.75 S 28.50 36.00 S 55.75 60.50 S 65.75 S 68.50 S 69.25 S 29.50 37.50 S 58.00 6300 S 68.25 70.75 72.00 Ground Service Weight c Zones-Transit Time irn 1 Lbs $ 4.75S 4.90 S 5.25 S 5.35 5.65 $ 4.85 S 5.15 5.65 S 5.80 S6.25 5.70 S 5.85 6.40 S 6.80 S 5.15 S 5.60 6.30 S 6.60 7.10 7.30 S 8.05 5.40 S 5.80 6.60 S 6.95 7.40 $7.75 S 8.55 $555 S6.00 6.75 7.20 7.65 B.05 S 8.85 S 5.75S 6.15 S 6.90 S745 7.95 8.35 S 9.25 $ 6.00 S 6.35 7.10S 7.60 8.25 8.75 S 9.90 $ 6.20 6.55 $ 640 S 6.70 6.60 S6.90 $ 6.80 7.10 $ 7.00 S 7.35 $ 7.15 S 7.55 $7.35 S 7.80 725 7.40 S 8.00 8.80 9.90 S 11.25 7.55S 8.25 S 9.20 $ 10.60 S 12.05 7.70S 8.45 9.60 11.35 S 12.95 7.85 S 8.65 10.05 12.05 S 13.80 8.00 S 8.85 10.60 12.75 S 14.65 815 S 9.05 11.1513.45 S 15.55

Explanation / Answer

Problem 11-3 The table below provides shipping rates for packages using UPS next day air or ground service options. The rates vary according to both the weight of the package and the distance of the shipment (larger numbered zones are farther away) Note that the zone number also indicates the number of days required to deliver a package using ground service. A transportation manager must ship orders of materias weighing three pounds each to destinations in each of the seven zones listed in the table. The daily inventory holding rate is $7.25 per day for all orders. The manager has decided to use next day air service for all shipments. Next Day Service Weight 1 Lbs $17.25 $20.75 $25.50 27.75 $ 3025 $31.25 $32.00 S 19.00 S 21.75 S 28.25 30.50 S 33.50 S 34.75 35.50 $21.25 $24.25 $33.50 36.25 S 39.50 $40.75 $41.75 S 22.00 S 25.25 S 36.00 39.00 S 42.75 44.00 45.00 $23.75 $28.25 $41.00 44.75 $49.25 $50.25 $51.25 S 24.50S 29.75 S 43.75 47.50 S 52.50 S 53.75 54.50 $2625 $32.50 $48.75 52.75 $58.00 $ 60.00 $ 60.75 S 27.00 S33.50 S 51.25 55.50 S 60.75 S 63.00 63.75 S 28.50 36.00 S 55.75 60.50 S 65.75 S 68.50 S 69.25 S 29.50 37.50 S 58.00 6300 S 68.25 70.75 72.00 Ground Service Weight c Zones-Transit Time irn 1 Lbs $ 4.75S 4.90 S 5.25 S 5.35 5.65 $ 4.85 S 5.15 5.65 S 5.80 S6.25 5.70 S 5.85 6.40 S 6.80 S 5.15 S 5.60 6.30 S 6.60 7.10 7.30 S 8.05 5.40 S 5.80 6.60 S 6.95 7.40 $7.75 S 8.55 $555 S6.00 6.75 7.20 7.65 B.05 S 8.85 S 5.75S 6.15 S 6.90 S745 7.95 8.35 S 9.25 $ 6.00 S 6.35 7.10S 7.60 8.25 8.75 S 9.90 $ 6.20 6.55 $ 640 S 6.70 6.60 S6.90 $ 6.80 7.10 $ 7.00 S 7.35 $ 7.15 S 7.55 $7.35 S 7.80 725 7.40 S 8.00 8.80 9.90 S 11.25 7.55S 8.25 S 9.20 $ 10.60 S 12.05 7.70S 8.45 9.60 11.35 S 12.95 7.85 S 8.65 10.05 12.05 S 13.80 8.00 S 8.85 10.60 12.75 S 14.65 815 S 9.05 11.1513.45 S 15.55

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