Range Air Vent Enterprises Case Study

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Executive Summary Range Air Vent Enterprises is trying to determine the best possible mode of transportation and manufacturing options which will save the company time and money. The aim was to determine which mode of transportation, road or rail, would save the company more money while taking into consideration the manufacturing of the range hoods and the satisfaction of the customer. I have determined that it would be more cost effective if RAVE were to purchase the range hoods from Mobile, Alabama and transport them directly to each of the following Canadian distribution centers: Moncton, NB, Brampton, ON, Edmonton, AB and Vancouver, BC. Currently, it is costing RAVE $3,021,408.00CAD to transport the goods from Mobile, Alabama into Brampton, ON and then a further distribution into the other 3 distribution centers. By changing our modal option, RAVE would be…show more content…
The major advantage of using intermodal rail would be cost. This would be the cheapest form of transportation for the rage hoods from Brampton, ON to each of the distribution centers. This could increase in the over all profit of the range hoods over time. Another advantage maybe that if there is a shortage of drivers at a certain time they can always have it sent on the rail. Although there are a considerable number of advantages, there are many more disadvantages of using intermodal rail as the source of transportation to each distribution center. The main disadvantage would be service time; the freight traveling on the rail would add an extra two days to the transit time. Any time of the year there can be accidents on the railroad such as a derailment. This can cause a huge problem with the transit times. Depending on where the derailment occurs, the section of rail could be shut down for a couple of days or several
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