Problem 15-3 (Algo)A manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $524, and B for $531.In addition, A offers a three-day rate of $466 and a nine-day rate of $420, and B offers a four-day rate of $455 and a seven-day rate of$414. Annual holding costs are 38 percent of unit price. Four hundred and ten boxes are to be shipped, and each box has a price of$156. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and finalanswers to 2 decimal places.)OptionCostOptionCost2 days2 days3 days4 days9 days7 days

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...

See similar textbooks

Similar questions

Suppose that your firm manufactures rubber chickens. Monthly demand for the chickens is 32,000 units. Setup costs per order is $85, and the annual holding cost percentage is 17%. The chickens cost $8 to produce and are sold for $18. a. if you have a warehouse, what is the economic order quantity for the chickens? what is the total of the annual setup and holding cost of this quantity? b. suppose that you have 25 warehouses instead of one, and total demand is equally distributed among the warehouses. If setup and holding costs are the same in the smaller warehouses as they would be for a single large warehousem what is the EOQ for the chickens at each of the 25 warehouses? what is the total of the annual setup and holding costs at each warehouse? what is the total of the company's annual setup and holding costs? c. using centralized warehousing as in part a implies that products must be shipped over longer distances. suppose that shipping costs are $0.80 per unit when using one…
Subject: calculus
International Market (IM), a chain of store with international wares, imports decorative boxes (deco boxes) for indoor plants from Indonesia. Weekly demand for the deco boxes averages 1,500 across the company. Each box costs IM $10. An order of boxes shipped from Indonesia incurs the fixed transportation and delivery cost of $5,000. IM incurs a holding cost of 25% per year to carry inventory. Assume 52 weeks in the year. a) Determine the optimal order quantity for deco boxes at IM. Determine the ordering and holding costs associate with this ordering policy. b) Suppose the standard deviation of demand is 800 pots per week. If the deliver lead time from Indonesia is 9 weeks, and IM wants to provide its customers with a service level of 94%, how much safety stock should the company carry? What is the additional cost associated with holding this safety stock? c) X-P-Dite is a new shipping company that promises to reduce the delivery lead time for planters from 9 weeks to 3…
Please help to solve step by step.
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 %
Your options for shipping $104,800 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 30 days at a cost of $3,370, or (2) truck the parts to Los Angeles and then ship at a total cost of $5,030. The second option will take only 18 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 $4,080 and also takes 18 days, what is your most economical plan? Part 2 The daily holding cost of Alternative 1 is $________. (Enter your response rounded to two decimal places.) Part 3 The daily cost of faster shipping with Alternative 2 is $________. (Enter your response rounded to two decimal places.) Part 4 The daily cost of faster shipping with Alternative 3 is $________. (Enter your response rounded to two decimal places.) Part 5 ▼ Alternative 1? Alternative 2? Alternative 3? is more economical.
The Ambrosia Bakery makes cakes for freezing and subsequent sale. The bakery, which operates five days a week,52 weeks a year, can produce cakes at the rate of 116 cakesper day. The bakery sets up the cake-production operationand produces until a predetermined number (Q) have beenproduced. When not producing cakes, the bakery uses itspersonnel and facilities for producing other bakery items.The setup cost for a production run of cakes is $700. Thecost of holding frozen cakes in storage is $9 per cake peryear. The annual demand for frozen cakes, which is constant over time, is 6000 cakes. Determine the following:a. Optimal production run quantity (Q)b. Total annual inventory costsc. Optimal number of production runs per yeard. Optimal cycle time (time between run starts)e. Run length in working days
please answer quickly
gainesvile cigar stocks cuban cigars that have variable lead times because of the difficulty in importing the product: lead time is normally distributed with an average of 6 weeks and a standard deviation of 2 weeks. demand is also a variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars. a) for a 90% of service level, what is the rop?
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

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS