Question

A large manufacturer uses two factors to decide whether to use truck or rail for movement of its products to market: cost and total travel time. The manufacturer uses a utility for- mula that rates each mode. The formula is U = 5C + 10T, where C is cost ($/ton) and Tis time (hours). For a given shipment of goods, a trucking firm can deliver in 16 hours and charges $25/ton, whereas a railroad charges $17/ton and can deliver in 25 hours. (a) Which mode should the shipper select? (b) What other factors should the shipper take into account in making a decision? (Dis- 2-6 cuss at least two.)

Answer 1

where c:.. cost in キ/ton. r C e 4.ve r ↑n 10 x 16 o n 2 oro o 0 Rail hoat Co 0 TR tox as houry

The zhi ·than the shǐ pne n Cost of is alwacys Cest to mala e conom y. Thetefone, the mauufactunes has h m [6) The fat he manufecturc cto rs ducts see whaileh the ane. taut to sa whether the eans of tran sport Chosen the oducts saf ely woithout oug amae 0 oti is no use of at a eower Cost ,colth dawenge4 ト。ducts pelng delivers 4 is 12) Company staff-O the 70cds m bar also iw bostant to check the twack he caol s verim postaut tor the to reach in timi, Safely and hou the ahe packed while Shiing There Should t be awn nisplaument which de bend on Shipp