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ABC Ltd. manufactures product P and delivers to its 16 retailer stores. Annual demand for P at each retail store is 100,000 units. ABC uses its own trucks for delivery and a truck has the capacity for 50,000 units. The truck costs $3,000 per load and $300 per delivery. The inventory holding cost at the retailer is 15% of the unit cost of P. Cost of a P is $20. Find the annual cost (inventory cost + transportation cost) of the supply chain network if milk runs of size 4 is used milk runs of size 8 is used

ABC Ltd. manufactures product P and delivers to its 16 retailer stores. Annual demand for P at each retail store is 100,000 units. ABC uses its own trucks for delivery and a truck has the capacity for 50,000 units. The truck costs $3,000 per load and $300 per delivery. The inventory holding cost at the retailer is 15% of the unit cost of P. Cost of a P is $20. Find the annual cost (inventory cost + transportation cost) of the supply chain network if milk runs of size 4 is used milk runs of size 8 is used

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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ABC Ltd. manufactures product P and delivers to its 16 retailer stores. Annual demand for P at each retail store is 100,000 units. ABC uses its own trucks for delivery and a truck has the capacity for 50,000 units. The truck costs $3,000 per load and $300 per delivery. The inventory holding cost at the retailer is 15% of the unit cost of P. Cost of a P is $20. Find the annual cost (inventory cost + transportation cost) of the supply chain network if

milk runs of size 4 is used

milk runs of size 8 is used

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