7. Novelis at Oswego NY supplies rolled aluminum sheets to Ford Motor's Kansas City plant to make F150 truck. The transportation manager of Novelis needs to choose from rail, waterway, and truck. The following information are gathered to make the transportation mode decision: Transportation Mode Transit Time, Days Rate $/cwt Shipment Size, cwt Rail 15 $2.50 12,000 Waterway 20 $0.80 200,000 4 $12.50 4,000 Truck The annual transportation volume is 2.5 million cwt. The value of aluminum is $500 per cwt. Inventory carrying cost for both companies is 20% per year. Please calculate the total logistics costs (transportation, inventory at Novelis, inventory at Ford, inventory in transit), and decide which transportation mode should be selected. (20 points)
7. Novelis at Oswego NY supplies rolled aluminum sheets to Ford Motor's Kansas City plant to make F150 truck. The transportation manager of Novelis needs to choose from rail, waterway, and truck. The following information are gathered to make the transportation mode decision: Transportation Mode Transit Time, Days Rate $/cwt Shipment Size, cwt Rail 15 $2.50 12,000 Waterway 20 $0.80 200,000 4 $12.50 4,000 Truck The annual transportation volume is 2.5 million cwt. The value of aluminum is $500 per cwt. Inventory carrying cost for both companies is 20% per year. Please calculate the total logistics costs (transportation, inventory at Novelis, inventory at Ford, inventory in transit), and decide which transportation mode should be selected. (20 points)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Transcribed Image Text:7. Novelis at Oswego NY supplies rolled aluminum sheets to Ford Motor's Kansas City plant to
make F150 truck. The transportation manager of Novelis needs to choose from rail, waterway,
and truck. The following information are gathered to make the transportation mode decision:
Transportation Mode
Transit Time, Days
Rate $/cwt
Shipment Size, cwt
Rail
15
$2.50
12,000
Waterway
20
$0.80
200,000
4
$12.50
4,000
Truck
The annual transportation volume is 2.5 million cwt. The value of aluminum is $500 per cwt.
Inventory carrying cost for both companies is 20% per year. Please calculate the total logistics
costs (transportation, inventory at Novelis, inventory at Ford, inventory in transit), and decide
which transportation mode should be selected. (20 points)
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