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LET THERE BE LIGHT LAMP SHADE COMPANY

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LET THERE BE LIGHT LAMP SHADE COMPANY
CASE 5-1 LET THERE BE LIGHT LAMP SHADE COMPANY
Question 1: How many style A shades can be loaded into an intermodal container?
The intermodal container holds 2,720 cubic feet, however, the top six inches is of no use. It will hold 2,560 style A shades.
Question 2: How many style B shades can be loaded into an intermodal container?
Style B shades could be stacked two packages high with the square foot on the bottom. Each column would hold 12 shades. There would be 8 x 40, or 320 columns of 12, yielding 3,840 lamp shades, and would weigh less than 40,000 pounds.
Question 3: How many style C shades can be loaded into an intermodal container?
Style C shades could be stacked the same way as style B and a container would hold 320 columns of 20, yielding 6,400 lamp shades. However, this would exceed the 44,000 pound weight limit. Each shade weighs 10.1 pounds; dividing that into 44,000 pounds yields approximately 4,350 lamp shades.
Question 4: What are the total costs of delivering the style A shades to the port of importation?
Item Cost parameters Total cost
Shade $4 x 5,400 $21,600
Packaging $.60 x 5,400 $3,240
Intermodal containers (3)
Container drayage to
Port of Oakland $1,000 x 3 $3,000
Insurance $27,800 x .02 $556
Ocean freight rates (a) $22 per 2,000 pounds $594
Ocean freight rates (b) $22 per 40 cubic feet $2,970
Pick higher of (a) or (b) $2,970 Total $31,366 Question 5: What are the total costs of delivering the style B shades to the port of importation?
Item Cost parameters Total cost
Shade $5 x 5,400 $27,000
Packaging $2 x 900 $1,800
Intermodal containers (2)
Container drayage to
Port of Oakland $1,000 x 2 $2,000
Insurance $30,800 x .02 $616
Ocean freight rates (a) $22 per 2,000 pounds $614
Ocean freight rates (b) $22 per 40 cubic feet $1,960
Pick higher of (a) or (b) $1,960 Total $33,376
Question 6: What are the total costs of delivering the style C shades to the port of importation?
Item Cost parameters

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