BookPrinteferencesAA manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $502, and B for $520.In addition, A offers a three-day rate of $470 and a nine-day rate of $401, and B offers a four-day rate of $455 and a seven-day rate of$436. Annual holding costs are 39 percent of unit price. Four hundred and ten boxes are to be shipped, and each box has a price of$144. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and finalanswers to 2 decimal places.)McGrawHill57°FPartly cloudyOption2 days3 days9 daysACostO ship seven-day using BO ship four-day using BOship two-day using AO ship two-day using BO ship three-day using AOption2 days4 days7 days-BCostQ Search< Prev3 of 3Next2.9

Answered: A manager must make a decision on…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The distribution manager for Divine Corporation is trying to establish the most economic ordering policy for the standard model of its best-selling microwave oven. He has control of the finished goods warehouse for the factory and must satisfy wholesaler demand. The following information is available: Wholesale Value $100 Annual Demand 50,000 units Standard Deviation of Demand 30 units per day Working Year 250 days Production Lead Time 9 days Ordering Cost for Production $1,800 Holding Cost per unit per year 20% of value Desired Service Level 96 percent If Divine decides to use a continuous review system, what should be economic order quantity, safety stock, and the reorder point? If on the other hand, Divine wishes to use the periodic review system, what should be the safety stock, reorder point? If the current on hand inventory is 1,000 units, how many units should be ordered?
Subject: calculus
Determine which delivery alternative would be most economical for 50 boxes of parts. Each box costs $434 and the annual holding cost is 20% of the cost. Assume 365 days per year. Overnight delivery option costs $300, and eight-day delivery option costs $125 a. The overnight option is at least $182 cheaper than eight-day b. The overnight option is at least $91 cheaper than eight-day c. The eight-day option is at least $182 cheaper than overnight d. The eight-day option is at least $91 cheaper than overnight
Your options for shipping $96,970 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 32 days at a cost of $3,370, or (2) truck the parts to Los Angeles and then ship at a total cost of $5,180. The second option will take only 20 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year. If you have a third option and it costs only $4,440 and also takes 20 days, what is your most economical plan? The daily holding cost of Alternative 1 is $ 79.70 . (Enter your response rounded to two decimal places.) The daily cost of faster shipping with Alternative 2 is $ 150.83. (Enter your response rounded to two decimal places.) The daily cost of faster shipping with Alternative 3 is $ (Enter your response rounded to two decimal places.)
In the single period model, if the excess cost is 7.5 times the shortage cost, the approximate stock - out risk, assuming an optimum service level, is: a. 88.24 % b. 66.18 % c. 10 % d. 11.76 %
Determine which delivery alternative would be most economical for 70 boxes of parts. Each box costs $346 and the annual holding cost is 30% of the cost. Assume 365 days per year. Overnight delivery option costs $300, and eight-day delivery option costs $125 a. The overnight option is at least $70 cheaper than eight-day b. The eight-day option is at least $35 cheaper than overnight c. The eight-day option is at least $70 cheaper than overnight d. The overnight option is at least $35 cheaper than eight-day
A manager must make a decision on delivery alternatives. There are two carriers, A and B. Both offer a two-day rate. In addition, A offers a three-day rate and a nine-day rate, and B offers a four-day rate and a seven-day rate. Three hundred boxes are to be delivered and the freight cost for the whole lot for each option is given below. Annual holding cost is 35 percent of unit cost, and each box has a cost of $130. Assume 365 days per year. Which delivery alternative would you recommend? Carrier A Options 2 days 3 days 9 days Carrier A Carrier B Freight Cost $580 520 480 Carrier B Options 2 days 4 days 7 days Freight Cost $570 540 500 Delivery alternative ✓Click to select) D Two-day Three-day Nine-day
You are a purchasing manager in charge of stocking a certain type of product. Weekly demand for these products is normally distributed, with a mean of 100 and a standard deviation of 50. Holding costs are 25%, and you must hold a level of inventory corresponding to a cycle service level of 95%. You are faced with two suppliers, QUALITY Products and BEST Products, who offer the following terms. QUALITY sells the products for €5,000 with a minimum order of 100, and a lead time of 1 week with a standard deviation of 0.1 week. BEST sells the transformer for €4,800, has a minimum batch of 1,000, a lead time of 5 weeks, and a lead-time standard deviation of 4 weeks. If you could use both suppliers, how would you structure your orders? Describe the dimensions of supplier performance that affect total cost

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