In the MT498 Unit 7 model, the Ohio site lands an eastern case at $30.60 against $32.30 unchanged, $31.40 for closing Columbus and $31.73 for contract pleating. Searches like "mt 498 unit 7 assignment example", "mt498 unit 7 sample" and "mt498 unit 7 example" land here.
What a finished MT498 Unit 7 total landed cost model looks like
A spreadsheet printout of one table and four supporting tabs, with a three-page narrative. The table has nine cost rows and four option columns, all per eastern case on [396,000] cases a year. Materials sit at [$18.40] for every in-house option, and the contract pleater's [$26.95] all-in price replaces materials and conversion in column D. Outbound freight shows the decisive gap, $3.53 for the current network against $1.64 for Ohio pleating. Two rows move the other way for Ohio: conversion rises 45 cents a case, and 90 cents of Salina overhead no longer has eastern volume to absorb it. Totals read $32.30, $31.40, $30.60 and $31.73. Annual figures follow, with Ohio saving $675,680 on a one-time cost of $1,526,800 and paying back in 2.26 years.
How a MT498 Unit 7 example is structured
Assumptions tab first, then the cost build, then sensitivity, then the narrative. Every input on the assumptions tab carries a source or a bracketed estimate: the [$2.40] truckload rate, [1,080] cases per outbound trailer against [5,100] per inbound media load, a [22] percent annual carrying rate and [$11.40] per short case. Rows are ordered as money leaves the company, from purchase through conversion, inbound freight, duty, outbound freight and storage, then the three rows first-cut models forget: carrying cost, stranded overhead and stockouts. The sensitivity tab tests the two inputs most likely to be wrong. Freight rates twenty percent lower still leave Ohio $500,023 a year ahead, and the saving disappears only if Ohio conversion exceeds about $8.26 a case. The narrative explains why closing Columbus shrinks from $506,260 to $355,791 once stockouts and inventory enter.
Nine rows in the order money leaves
Purchase, conversion, inbound freight, duty, outbound freight, storage, carrying, stranded overhead and stockouts each carry a per-case figure, so any total can be traced back to a single input.
The row that decides it
Outbound freight falls by $1.89 a case under Ohio pleating, $748,000 a year, because the trailer run from Kansas disappears. No other row moves nearly as far in either direction.
Costs that move against the saving
Ohio conversion costs $178,200 a year more than Salina's, and $355,000 of Salina overhead stays behind when three lines leave. Both sit beside the freight saving in the main table rather than in a footnote.
Stockouts as a cost row
At [$11.40] a short case, current stockouts cost $407,494 a year including expedites; under Ohio pleating, $130,346. Treating service as money lets the model weigh it directly against freight.
Where the answer would flip
Ohio stays ahead with freight rates twenty percent lower and loses its lead only when its conversion cost passes about $8.26 a case. Doubling the stranded overhead still leaves $320,680 a year.
Where marks go in MT498 Unit 7
Completeness comes before precision when a landed cost model is graded in this course. A freight saving shown without the overhead stranded at the old site, or without the higher labor rate at the new one, is the pattern instructors comment on most, since it turns a close result into an easy one. Carrying cost and stockout cost are the next rows checked; leaving either out flatters whichever option holds more inventory or serves customers worse. Inputs need a visible basis, and a bracketed estimate with its method is accepted where a bare number is not. Sensitivity analysis earns credit when it targets the inputs most likely to be wrong and reports the value at which the recommendation would reverse. A payback figure with no itemized one-time cost behind it tends to draw a request for detail.
Get a MT498 Unit 7 example written to your instructions
Include the options your model compares, every rate, volume and price on file, plus the Unit 7 instructions and rubric. We build a composite landed cost model with every row sourced or bracketed, a sensitivity tab and the break-even that would reverse the answer. The first custom sample costs nothing; 24-48h is typical.
MT498 Unit 7 questions, answered
Does a domestic network redesign need a duty row?
Only if some inputs cross a border. In this sample, premium filter media is imported, so duty appears, but it is identical across the in-house options and drops out of the comparison. Showing it anyway proves the model is complete, and it matters for the contract option, whose pleater buys domestic media and pays none.
What carrying cost rate should the model use?
Your company's own rate if it has one, otherwise a stated assumption. Rates between about fifteen and twenty-five percent a year, applied to the value of stock held, are widely used, covering capital, storage, insurance and obsolescence. The rate matters less than applying it to every stock position in every option: media, finished goods and inventory in transit.
Should one-time costs go into the per-case figure?
Usually they sit outside it, reported as a payback or net present value beside the running cost, because mixing them hides how quickly an option earns back its setup. Some sections prefer amortizing them over a stated period instead. Either approach works if the choice is explicit and applied the same way to every option.