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Let There Be Light

In: Business and Management

Submitted By rimorimo
Words 1157
Pages 5
CASE STUDY: LET THERE BE LIGHT LAMP SHADE COMPANY

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

The let there be light lamp shade company started in Madison, Wisconsin. Here are some facts about the transaction:
5400 identical lamp shade
Style A: cylinder, 11 inches high and 11 inches in diameter
Style B: cone shaped 12*12*48 inches
Style C: cone shaped 12*12*50
Maximum weight of the load: 44 000 pounds per loaded container (highway regulations)
Land rate: $1000 per 40 foot container
Ocean rate: $22 per ton (2000 pounds)
Insurance cost: 2% of the cost of the shipment

Style A:
Cost per piece: $4
Packaging cost: $0.60
Package weight : 10 pounds
Number of pieces per package: 1

Style B:
Cost per piece: $5
Packaging cost: $2
Package weight : 62 pounds
Number of pieces per package: 6

Style C:
Cost per piece: $6
Packaging cost: $3
Package weight : 101 pounds
Number of pieces per package: 10

In order to calculate the number of style A shades per container, it's important to know the measurements of each container:
Intermodal container size: 8 feet wide, 8.5 feet high and 40 feet long
To find the area of a cube you must multiply length*width*height
Therefore, there are 2720 cubic feet in the container.
The size of one package of shades from style A is 12*12*12 ( 1 cubic foot)
So, since the lamp shade are one cubic foot, the 0.5 in the 8.5 foot height can be disregarded because the lamp shade won't fit in that space.
So the new dimensions of usable space are: 8*8*40 (2560 cubic feet) in the container.
In order to calculate the number of packages from style A that can be in one container, you simply divide 2560/1 which gives you 2560 packages//shades
Therefore, one container can have 2560 style A shades and the company…...

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