Inspect
Review the problem, diagram, and evidence.
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.
Inspect, commit, prove, fix, and sign off.
Follow the investigation process used in the field β in five guided steps.
Review the problem, diagram, and evidence.
Choose your hypothesis.
Run calculations and test your idea.
Select and validate a safe correction.
See the full debrief and key takeaways.
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.
Find the root cause, confirm the fix, and see how this connects to the exam.
Lane freight rates were averaged without considering customer demand.
Most annual volume moved on the West lane, where Site A had the major cost advantage.
Use total annual transport cost Ξ£(demandΓrate).
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.
Compare network alternatives using shipment-volume-weighted transportation cost: total cost=Ξ£(demand_iΓrate_i).
Weight each lane rate by the shipment quantity or demand on that lane.
When West and East demand are each 5,000 units per year.
Each case is designed to build the judgment, analysis, and confidence you need for engineering exams β and beyond.
Basic subject familiarity helps, but every case is designed to teach through the investigation itself.
Most cases are designed for a focused 5β10 minute investigation.
Each case is mapped to a verified exam, subject, topic, and misconception before publication.
The sealed debrief unlocks with the root cause, corrected reasoning, fix, and takeaway.