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Fred now had a good idea what each of his shipping options cost. It was clear that trucking was less expensive than barging. But, he had the nagging feeling he hadn’t necessarily solved his storage problem. If each of his paper loaders could fill a cargo container with 25 MT of linerboard in one and one/half hours, how many tons could they load if both of them worked at top speed for a full twelve-hour day? Could they load enough linerboard each day to solve Fred’s storage problem? Fred realized that to solve his storage problem, he had to find a shipping option that would allow him to ship 858 MT of linerboard a day. Fred had calculated the 858 MT-a-day figure by realizing that if the mill produced 1,000 MT of linerboard each day for seven days, he had approximately 142 MT of storage capacity each day. That is, if he stored 142 MT of linerboard each day and shipped 858 MT of linerboard each day, his storage shed would be completely full by the end of the week. The storage shed could then be emptied during the following week when the mill was producing 500 MT of paper each day. Was trucking more or less expensive than barging if he needed to ship at least 858 MT of linerboard a day? Click to continue previewing the student version on screen. |
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