The warehouse also “transloads” from sea containers into larger U.S. domestic containers. Two thirds of the goods are destined to Memphis, Tenessee and one third to Harrisburg, Pennsylvanian. Distances and truck load rates are shown below:
Lane Miles Rate/Mile
LA to Memphis 1800 $1.65
LA to Harrisburg 2350 $1.85
Assume that the warehouse receives 36 sea containers per day for translating. If 3 sea containers can be translated into 2 domestic containers, but it costs $450 to transfer each sea container’s contents into a domestic container, how much is the translating operation saving the Gap every day?
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