A refiner in city Q serves three customers near city Wand maintains consignment inventory (owned by the refiner) at each location. Currently, the refiner uses TL (truckload) transportation to deliver separately to each customer. Each truck costs $650 plus $300 per stop. The refiner is considering aggregating deliveries to city Won a singletruck. The demand ofthe first customer is 96 tons a year, the demand of the second customer is 24 tons per year, and the demand of the third customer is 9.6 tons per year. Product cost is $7,700 per ton, and it uses a holding cost of 15%. Truck capacity is 15tons. a.What is the annual transportation and holding cost if the refiner ships a full truckload each time a customer is running out of stock? How many days of inventory is carried at each customer under this policy? b.What is the optimal delivery policy to each customer if the refiner ships separately to each of them? What is the annual transportation and holding cost? How many days of inventory is carried at each customer under this policy? c.What is the optimal delivery policy to each customer if the refiner aggregates shipments to each of the three customerson every truck that goes to city W? What is the annual transportation and holding cost? How many days of inventory are carried at each customer under this policy?
A refiner in city Q serves three customers near city Wand maintains consignment inventory (owned by the refiner) at each location. Currently, the refiner uses TL (truckload) transportation to deliver separately to each customer. Each truck costs $650 plus $300 per stop. The refiner is considering aggregating deliveries to city Won a singletruck. The demand ofthe first customer is 96 tons a year, the demand of the second customer is 24 tons per year, and the demand of the third customer is 9.6 tons per year. Product cost is $7,700 per ton, and it uses a holding cost of 15%. Truck capacity is 15tons.
a.What is the annual transportation and holding cost if the refiner ships a full truckload each time a customer is running out of stock? How many days of inventory is carried at each customer under this policy?
b.What is the optimal delivery policy to each customer if the refiner ships separately to each of them? What is the annual transportation and holding cost? How many days of inventory is carried at each customer under this policy?
c.What is the optimal delivery policy to each customer if the refiner aggregates shipments to each of the three customerson every truck that goes to city W? What is the annual transportation and holding cost? How many days of inventory are carried at each customer under this policy?
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