FE Industrial & Systems Practice Question Solution included after investigation
CASE E-086 Β· FE

The Higher-Rate Distribution Center That Cost $10,000 Less

Site A had the higher simple average freight rate, but most demand was on its low-cost lane. Demand-weighted annual cost made Site A $10,000 cheaper.

β–Ά INTERACTIVE CASE FILE β€’ 5–10 MIN β€’ CLICK TO INVESTIGATE

Inspect, commit, prove, fix, and sign off.

Case E-086 engineering failure visual
HOW THIS WORKS

Think like
a real engineer.

Follow the investigation process used in the field β€” in five guided steps.

1

Inspect

Review the problem, diagram, and evidence.

2

Commit

Choose your hypothesis.

3

Prove

Run calculations and test your idea.

4

Fix

Select and validate a safe correction.

5

Sign Off

See the full debrief and key takeaways.

Case Brief

SAME PRINCIPLES. HIGHER STANDARDS.
PROBLEM STATEMENT

A company must choose one distribution-center site to serve two annual markets: West demand=8,000 units and East demand=2,000 units. Transportation rates from Site A are $2/unit to West and $8/unit to East. Rates from Site B are $4/unit to West and $5/unit to East. Fixed facility costs are equal and may be ignored. A note chooses Site B because its simple average rate, $4.50/unit, is lower than Site A's $5.00/unit. Determine the lower-cost site and annual transportation-cost difference.

Facilities Supply Chain Industrial Systems Design Verification Root Cause Analysis Safe Correction
E-086
INVESTIGATION WORKSPACE WORK THROUGH THE CASE β€” YOUR CHOICES MATTER.
πŸ”’
DEBRIEF (LOCKED)

Complete the investigation
to unlock the full debrief.

Find the root cause, confirm the fix, and see how this connects to the exam.

πŸ”’Root causeComplete the case
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πŸ”’Correct fixComplete the case
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πŸ”’Exam takeawayComplete the case
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CASE CLOSED Β· ENGINEERING VERDICT

What actually failed β€” and what should change.

What failed

Lane freight rates were averaged without considering customer demand.

What was missed

Most annual volume moved on the West lane, where Site A had the major cost advantage.

Corrected model

Use total annual transport cost Ξ£(demandΓ—rate).

QUICK ANSWER

Site A costs 8000($2)+2000($8)=$32,000/year. Site B costs 8000($4)+2000($5)=$42,000/year. Site A is therefore $10,000/year cheaper.

ENGINEERING TAKEAWAY

Compare network alternatives using shipment-volume-weighted transportation cost: total cost=Ξ£(demand_iΓ—rate_i).

CASE QUESTIONS

Questions this case should settle.

How should transportation rates be compared across unequal markets?

Weight each lane rate by the shipment quantity or demand on that lane.

When would the two sites in this case have equal transport cost?

When West and East demand are each 5,000 units per year.

NEXT FE PRACTICE QUESTION

The Cell That Needed 4 Machines, Not 3

Facilities Supply Chain Β· 5–10 min

Continue Practice β†’
WHAT YOU’LL LEARN

Real failures. Lasting skills.

Each case is designed to build the judgment, analysis, and confidence you need for engineering exams β€” and beyond.

  • Apply core engineering concepts to real-world problems
  • Practice structured troubleshooting and analysis
  • Strengthen exam-ready thinking through realistic scenarios
COMMON QUESTIONS
Do I need prior knowledge to use these cases?

Basic subject familiarity helps, but every case is designed to teach through the investigation itself.

How long does a case take?

Most cases are designed for a focused 5–10 minute investigation.

Are the cases aligned with engineering exams?

Each case is mapped to a verified exam, subject, topic, and misconception before publication.

What happens after I complete a case?

The sealed debrief unlocks with the root cause, corrected reasoning, fix, and takeaway.