# dolution

dolution.

The Oceania Dairy Company (ODC) is a New Zealand milk-processing company. Its plant near Timaru currently produces infant milk powder for the domestic market. Recently, ODC won its first international customer when a retailer in Singapore placed orders for 60,000 3-kilogram tins of milk powder to be delivered. ODCĂ˘â‚¬â„˘s plan was to package the milk powder in tins at its plant and ship the tins by sea to Singapore. ODCĂ˘â‚¬â„˘s production cost, before packaging and logistics, was \$3 per kilogram. The existing tin design was cylindrical and measured 21 centimetres in diameter and 22 centimetres in height externally. Each tin cost \$3 from a local packaging materials supplier and weighed 0.3 kilogram. Therefore, each tin that was filled with milk powder weighed 3.3 kilograms. These tins would have to be palletized and shrink-wrapped to withstand a sea journey, before being loaded into temperature-controlled shipping containers. Each wooden pallet (including shrink-wrapping materials) weighed 15 kilograms, cost \$25. The internal dimensions of these containers were as follows: 2.28 meters wide by 2.12 meters high by 11.84 meters long. Each wooden pallet is loaded with 100 tins and shrink-wrapped. Each pallet after loading and shrink wrapped has following dimensions, 1.067 meters long, 1.067 meters wide, and 1 meter high. The loaded containers would be trucked from the processing plant to the Port of Timaru at a cost of \$500 per container. The total shipment weight could not exceed 20,000 kilograms per container because of highway weight restrictions. Insurance costs were 3 percent of the value of the shipment ready to be loaded aboard ship in Timaru (that is, all of the companyĂ˘â‚¬â„˘s costs up to this point). The ocean freight cost from the Port of Timaru to any address in Singapore was \$2,500 per container.

1.How many tins of milk powder can be loaded into a container under this plan?

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2.What are the total costs of delivering the milk powder to the Singapore under this plan?

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