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25 Sep 2025, 08:48
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A company is preparing the cost estimate for transporting 10 pallets of goods to a distribution center. The pallets will be shipped together on a single freight order.
Unloading at the distribution center requires forklifts. The company can either ship 3 forklifts along with the pallets, or rent 3 forklifts locally from the provider.
At the distribution center, unloading is carried out by local service providers. Each provider charges a labor fee for unloading the shipment. If the company chooses not to ship its own forklifts, the provider will also charge a rental fee for the forklifts used.
Unloading at the distribution center requires forklifts. The company can either ship 3 forklifts along with the pallets, or rent 3 forklifts locally from the provider.
At the distribution center, unloading is carried out by local service providers. Each provider charges a labor fee for unloading the shipment. If the company chooses not to ship its own forklifts, the provider will also charge a rental fee for the forklifts used.
For each of the following statements, select True if it correctly describes the maximum total cost of transporting and unloading, and False otherwise.
| True | False | |
| The maximum total, if forklifts are shipped with the pallets, involves Carrier C1. | ||
| The maximum total, if forklifts are rented at the warehouse, involves Provider P3. | ||
| The maximum total occurs when forklifts are shipped. |
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Official Answer
The maximum total, if forklifts are shipped with the pallets, involves Carrier C1.: False
The maximum total, if forklifts are rented at the warehouse, involves Provider P3.: False
The maximum total occurs when forklifts are shipped.: False
25 Sep 2025, 08:48
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Official Solution:
• The maximum total, if forklifts are shipped with the pallets, involves Carrier C1.
If forklifts are shipped, then we are looking for the carrier that produces the highest freight cost for 10 pallets plus 3 forklifts, combined with the highest labor fee.
- Carrier C1 gives $1,600 for pallets and $540 for forklifts, totaling $2,140. Adding the highest labor fee of $250 gives $2,390.
- Carrier C4 gives $2,200 for pallets and $210 for forklifts, totaling $2,410. Adding the highest labor fee of $250 gives $2,660.
Since $2,660 with Carrier C4 is higher, the maximum shipped cost does not involve Carrier C1.
Therefore this statement is False.
• The maximum total, if forklifts are rented at the warehouse, involves Provider P3.
If forklifts are rented, then we look for the provider with the highest labor plus rental cost. Provider P1 has $220 labor and $255 rental for three forklifts, totaling $475, which is higher than Provider P3’s $470. With the most expensive carrier (C4 at $2,200), the maximum rented cost is $2,675 with Provider P1, not P3.
Therefore this statement is False.
• The maximum total occurs when forklifts are shipped.
- If forklifts are shipped, then we are looking for the carrier with the highest cost for pallets plus three forklifts, combined with the highest labor fee. Carrier C4 gives $2,200 for pallets and $210 for forklifts, totaling $2,410. With the highest labor fee of $250 from Provider P2, the shipped total is $2,660.
- If forklifts are rented, then we are looking for the carrier with the highest pallet cost and the provider with the highest combined labor plus rental. Carrier C4 again has $2,200 for pallets, and Provider P1 has $220 labor plus $255 rental = $475. Together, this gives $2,675.
So the maximum total is $2,675 when forklifts are rented with Provider P1, not when shipped. Therefore this statement is False.
Correct answer:
The maximum total, if forklifts are shipped with the pallets, involves Carrier C1. "False"
The maximum total, if forklifts are rented at the warehouse, involves Provider P3. "False"
The maximum total occurs when forklifts are shipped. "False"
Bunuel
• The maximum total, if forklifts are shipped with the pallets, involves Carrier C1.
If forklifts are shipped, then we are looking for the carrier that produces the highest freight cost for 10 pallets plus 3 forklifts, combined with the highest labor fee.
- Carrier C1 gives $1,600 for pallets and $540 for forklifts, totaling $2,140. Adding the highest labor fee of $250 gives $2,390.
- Carrier C4 gives $2,200 for pallets and $210 for forklifts, totaling $2,410. Adding the highest labor fee of $250 gives $2,660.
Since $2,660 with Carrier C4 is higher, the maximum shipped cost does not involve Carrier C1.
Therefore this statement is False.
• The maximum total, if forklifts are rented at the warehouse, involves Provider P3.
If forklifts are rented, then we look for the provider with the highest labor plus rental cost. Provider P1 has $220 labor and $255 rental for three forklifts, totaling $475, which is higher than Provider P3’s $470. With the most expensive carrier (C4 at $2,200), the maximum rented cost is $2,675 with Provider P1, not P3.
Therefore this statement is False.
• The maximum total occurs when forklifts are shipped.
- If forklifts are shipped, then we are looking for the carrier with the highest cost for pallets plus three forklifts, combined with the highest labor fee. Carrier C4 gives $2,200 for pallets and $210 for forklifts, totaling $2,410. With the highest labor fee of $250 from Provider P2, the shipped total is $2,660.
- If forklifts are rented, then we are looking for the carrier with the highest pallet cost and the provider with the highest combined labor plus rental. Carrier C4 again has $2,200 for pallets, and Provider P1 has $220 labor plus $255 rental = $475. Together, this gives $2,675.
So the maximum total is $2,675 when forklifts are rented with Provider P1, not when shipped. Therefore this statement is False.
Correct answer:
The maximum total, if forklifts are shipped with the pallets, involves Carrier C1. "False"
The maximum total, if forklifts are rented at the warehouse, involves Provider P3. "False"
The maximum total occurs when forklifts are shipped. "False"
