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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 minimum total cost of transporting and unloading, and False otherwise.
| True | False | |
| The minimum total, if forklifts are rented at the warehouse, involves Provider P2. | ||
| The minimum total, if forklifts are shipped with the pallets, involves Carrier C3. | ||
| The minimum total occurs when forklifts are shipped. |
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Official Answer
The minimum total, if forklifts are rented at the warehouse, involves Provider P2.: True
The minimum total, if forklifts are shipped with the pallets, involves Carrier C3.: False
The minimum total occurs when forklifts are shipped.: False
25 Sep 2025, 08:48
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Official Solution:
• The minimum total, if forklifts are rented at the warehouse, involves Provider P2.
If forklifts are rented, then the cheapest option is with the provider that has the lowest combined labor fee and forklift rental fee. P2 has labor $250 and rental $70 per forklift, or $210 for three, totaling $460. This is the lowest combination, so this statement is True.
• The minimum total, if forklifts are shipped with the pallets, involves Carrier C3.
If forklifts are shipped, the minimum total comes from the carrier that provides the lowest combined cost for 10 pallets plus 3 forklifts. Carrier C5 gives $1,700 for pallets and $330 for forklifts, or $2,030 total. Carrier C3 gives $1,800 + $300 = $2,100, which is higher. Therefore this statement is False.
• The minimum total occurs when forklifts are shipped.
If forklifts are shipped, lowest carrier is C5 ($2,030) plus lowest labor $200 from P3 = $2,230.
If forklifts are rented, lowest carrier is C1 ($1,600) plus lowest rental+labor $460 from P2 = $2,060.
Since $2,060 is less than $2,230, the minimum total is when forklifts are rented. Therefore this statement is False.
Correct answer:
The minimum total, if forklifts are rented at the warehouse, involves Provider P2. "True"
The minimum total, if forklifts are shipped with the pallets, involves Carrier C3. "False "
The minimum total occurs when forklifts are shipped. "False "
Bunuel
• The minimum total, if forklifts are rented at the warehouse, involves Provider P2.
If forklifts are rented, then the cheapest option is with the provider that has the lowest combined labor fee and forklift rental fee. P2 has labor $250 and rental $70 per forklift, or $210 for three, totaling $460. This is the lowest combination, so this statement is True.
• The minimum total, if forklifts are shipped with the pallets, involves Carrier C3.
If forklifts are shipped, the minimum total comes from the carrier that provides the lowest combined cost for 10 pallets plus 3 forklifts. Carrier C5 gives $1,700 for pallets and $330 for forklifts, or $2,030 total. Carrier C3 gives $1,800 + $300 = $2,100, which is higher. Therefore this statement is False.
• The minimum total occurs when forklifts are shipped.
If forklifts are shipped, lowest carrier is C5 ($2,030) plus lowest labor $200 from P3 = $2,230.
If forklifts are rented, lowest carrier is C1 ($1,600) plus lowest rental+labor $460 from P2 = $2,060.
Since $2,060 is less than $2,230, the minimum total is when forklifts are rented. Therefore this statement is False.
Correct answer:
The minimum total, if forklifts are rented at the warehouse, involves Provider P2. "True"
The minimum total, if forklifts are shipped with the pallets, involves Carrier C3. "False "
The minimum total occurs when forklifts are shipped. "False "
