: The Acme Tube Company has for the last 10 years used 42" square reusable wooden boxes to ship custom length short tubing. During the past year the unit cost of a shipping box has soared from $14.50...

: The Acme Tube Company has for the last 10 years used 42" square reusable wooden
boxes to ship custom length short tubing. During the past year the unit cost of a shipping box has
soared from $14.50 to $40.00 per unit. In addition, box maintenance has gone up from $5 per
year to $22 per year. Reusability has turned into a cost trap for Acme. Extra truck runs and
outside trucking services are being employed to recover the returnable wooden boxes since on
return trips the firm's trucks are needed to pick up raw stock. Another major problem being faced
is that warehouse space is getting very scarce but to operate Acme must have an inventory of
about $10,000 worth of wooden boxes in the system at all times.
Question: As a material handling engineer, how would you improve this system? Give a detailed
description of a possible new method for shipping the tubes

Sep 12, 2022
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