Sampson Industries is very concerned about the cost of shipping products on a daily basis to its distributor. Sampson is considering consolidating daily shipments into weekly or even monthly deliveries. Currently, every month Sampson makes 20 shipments of 1,500 pounds each. Use Table 15.2 to calculate the monthly cost of Sampson s current shipping practice and then calculate the cost of consolidating to 10, 5, 2 and then 1 shipment per month. Sampson believes that the freight classification will stay at 60 irrespective of consolidation.
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Sampson Industries is very concerned about the cost of shipping products on a daily basis to its…
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