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Question 1: How many tins of  milk powder can be loaded into a container under Option A?

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Question 1: How many tins of  milk powder can be loaded into a container under Option A?

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The number of milk powder tins in one container:

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The number of milk powder tins in one container:

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The number of tins in one pallet x the number of pallets
= 100 x 44 = 4,400 (tins)

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The number of kilograms in one container: 

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The number of kilograms in one container: 

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= Weight of pallets + weight of tins

= 15 x 44 + 3.3 x 4,400 = 15,180 (kg) < 20,000 (kg)

=> The weight of shipment in one container is acceptable.

=> Under option A, the number of milk powder tins in one container is 4,400.

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Question 2: How many tins of  milk powder can be loaded into a container under Option B?

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Question 2: How many tins of  milk powder can be loaded into a container under Option B?

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The number of milk powder tins (T) in one wooden pallet (P):

= 100 + 20

= 120 (tins)

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The number of milk powder tins that can fit in one container: 

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The number of milk powder tins that can fit in one container: 

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= The number of tins in one pallet x the number of pallets

= 120 x 44 = 5,280 (tins)

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The number of kilograms in one container: 

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The number of kilograms in one container: 

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= Weight of pallets + weight of tins

= 15 x 44 + 3.3 x 5,280 = 18,084 (kg) < 20,000 (kg)

=> The weight of shipment in one container is acceptable.

=> Under option B, the number of milk powder tins in one container is 5,280.

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Question 3: How many drums of milk powder can be loaded into acontainer under Option C?

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Question 3: How many drums of milk powder can be loaded into acontainer under Option C?

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The number of kilograms in one container: 

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The number of kilograms in one container: 

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(Weight of capacity in one drum + weight of one drum) x number of drum

= (200 + 32) x 90 = 20,880 (kg) > 20,000 (kg)

=> The weight of shipment in one container is unacceptable.

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Therefore, we decrease the number of drums to 86:

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Therefore, we decrease the number of drums to 86:

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(Weight of capacity in one drum + weight of one drum) x number of drum
= (200 + 32) x 86 = 19,952 (kg) < 20,000 (kg)
=> The weight of shipment in one container is acceptable.
=> Under option C, the number of drums in one container is 86.

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Question 4: What are the total costs of  delivering the milk powder to the retailer under Option A?

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Question 4: What are the total costs of  delivering the milk powder to the retailer under Option A?

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Question 5: What are the total costs of  delivering the milk powder to the retailer under Option B?

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Question 5: What are the total costs of  delivering the milk powder to the retailer under Option B?

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Question 6: What are the total costs of  delivering the milk powder to the retailer under Option C?

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Question 6: What are the total costs of  delivering the milk powder to the retailer under Option C?

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Question 7: Which option would you recommend? Why?

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Question 7: Which option would you recommend? Why?

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After calculating, we would recommend Option B which is to use the new tin design and pack into the standard pallet under a triangular packing arrangement because:

Compared with the other options, the total cost under option B is the lowest ($796,835 < $799,260 < $817,905)

This plan won’t be as complicated as the others

However, we should only use this plan for small quantities similar to this case. If the order has larger quantities, we should take consideration into option A because option A has simpler packing arrangement.