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A. What network do you recommend if annual sales for each product at each retail store are 600,000? What is the total transportation and inventory cost of this strategy? B. What network do you recommend if annual sales for each product at each retail store are 300,0007 What is the total transportation and inventory cost of this strategy?

A. What network do you recommend if annual sales for each product at each retail store are 600,000? What is the total transportation and inventory cost of this strategy? B. What network do you recommend if annual sales for each product at each retail store are 300,0007 What is the total transportation and inventory cost of this strategy?

Practical Management Science
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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1. A retall has sixteen stores in a region supplied from elght supply sources. Trucks have a capacity of 20,000 units and cost $1,000 per load plus $200 per delivery. Thus, a truck making two deliverles charges $1,400. The cost of holding one unit in inventory at retail store for a year is$1.00. The vice president of supply chain Is considering whether to use direct shlpping from suppliers to retail stores or setting up milk runs (2 and 4 stores milk run) from suppliers to retail stores. A. What network do you recommend if annual sales for each product at each retail store are 600,000? What is the total transportation and inventory cost of this strategy? B. What network do you recommend if anual sales for each product at each retail store are 300,0007 What is the total transportation and inventory cost of this strategy?
Transcribed Image Text:1. A retall has sixteen stores in a region supplied from elght supply sources. Trucks have a capacity of 20,000 units and cost $1,000 per load plus $200 per delivery. Thus, a truck making two deliverles charges $1,400. The cost of holding one unit in inventory at retail store for a year is$1.00. The vice president of supply chain Is considering whether to use direct shlpping from suppliers to retail stores or setting up milk runs (2 and 4 stores milk run) from suppliers to retail stores. A. What network do you recommend if annual sales for each product at each retail store are 600,000? What is the total transportation and inventory cost of this strategy? B. What network do you recommend if anual sales for each product at each retail store are 300,0007 What is the total transportation and inventory cost of this strategy?
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