AirFreight Questions
AirFreight Questions
Question1

Total Actual weight of the consolidation
Actualweight = shipment 1 + shipment 2
=325 + 500 = 825 Kgs

Total volume weight of the consolidation
Shipment1= 46cm x 46cm x 46cm x 14 =1,362,704 cm^{3}
Convertingthe cm^{3}to kg i.e. 1kg = 6000cm^{3}
AirVolume Weight in cubic centimeters = 1,362,704 cm^{3}÷6,000
AirVolume Weight in Kgs = 1,362,704 cm^{3}÷6,000
= 227.11733 = 227.12 Kg
Shipment2= 36in x 18in x16in x 20 = 207,360 in^{3}
Convertingin^{3}to kg i.e. 1kg = 366in^{3}
AirVolume Weight in Kgs = 207,360 in^{3} ÷366
=566.55738 = 566.56 kg
TotalAir weight = Shipment 1 + shipment 2
=227.12 + 566.56
=793.68 kg
Therefore,since the volume weight of the shipment is heavier than the actualweight we will use the volume weight and vice versa.

Charges for each customer
Shipment1 total air weight to use = 325kgs
Cost= weight x unit cost
=325 x $2.75
=$893.75
Shipment2 totalair weight to use = 566.56kg
Cost= weight x unit cost
=566.56 x $2.64
=$1,495.72

Payment to the air carrier
Shipment1 total air weight to use = 325kgs
Cost= weight x unit cost
=325 x $2.24
=$728
Shipment2 totalair weight to use = 566.56kg
Cost= weight x unit cost
=566.56 x $1.90
=$1,076.46

Profit on the shipment
Shipment1Profit = $893.75 $728 = 165.75
Shipment2:Profit = $1,495.72 – 1,076.46 = 419.26
TotalProfit on shipment = $165.75 + $419.26
=$585.01