A retail chain has 8 stores in a region supplied from 4 supply sources. Trucks have a capacity of 40,000 units and cost $1000 per load plus $100 per delivery. Thus a truck making 2 deliveries charges $1200. The cost of holding one unit in inventory at retail for a year is $0.20. The vice president of the supply chain is considering whether to use direct shipping from suppliers to retail stores or setting up milk runs from suppliers to stores. What network do you recommend if annual sales for each product at each retail store are 960,000 units? What network do you recommend if sales for each product at each retail store are 120,000 units?
A retail chain has 8 stores in a region supplied from 4 supply sources. Trucks have a capacity of 40,000 units and cost $1000 per load plus $100 per delivery. Thus a truck making 2 deliveries charges $1200. The cost of holding one unit in inventory at retail for a year is $0.20. The vice president of the supply chain is considering whether to use direct shipping from suppliers to retail stores or setting up milk runs from suppliers to stores. What network do you recommend if annual sales for each product at each retail store are 960,000 units? What network do you recommend if sales for each product at each retail store are 120,000 units?
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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A retail chain has 8 stores in a region supplied from 4 supply sources. Trucks have a capacity of 40,000 units and cost $1000 per load plus $100 per delivery. Thus a truck making 2 deliveries charges $1200. The cost of holding one unit in inventory at retail for a year is $0.20.
The vice president of the supply chain is considering whether to use direct
shipping from suppliers to retail stores or setting up milk runs from suppliers to stores. What network do you recommend if annual sales for each product at each retail store are 960,000 units? What network do you recommend if sales for each product at each retail store are 120,000 units?
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