Monczka-T rcnt Shipping is t he logistics vendorfor Handfield Manufacturing Co. in Ohio. Handfield has dailyshipments of a power-steering pump from its Ohio plant to an autoassembly line in Alabama. The value of the standard shipment is$250,000. Monczka-Trent has two options: ( I) its standard 2-dayshipment or (2) a subcontractor who will team drive overnightwith an effective delivery of one day. The extra driver costs $175.Handfield's holding cost is 35% annually for this kind of inventory.a) Which option is more economical?b) What productio n issues a re not included in the datapresented?
Monczka-T rcnt Shipping is t he logistics vendorfor Handfield Manufacturing Co. in Ohio. Handfield has dailyshipments of a power-steering pump from its Ohio plant to an autoassembly line in Alabama. The value of the standard shipment is$250,000. Monczka-Trent has two options: ( I) its standard 2-dayshipment or (2) a subcontractor who will team drive overnightwith an effective delivery of one day. The extra driver costs $175.Handfield's holding cost is 35% annually for this kind of inventory.a) Which option is more economical?b) What productio n issues a re not included in the datapresented?
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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Monczka-T rcnt Shipping is t he logistics vendor for Handfield Manufacturing Co. in Ohio. Handfield has daily shipments of a power-steering pump from its Ohio plant to an auto assembly line in Alabama. The value of the standard shipment is $250,000. Monczka-Trent has two options: ( I) its standard 2-day shipment or (2) a subcontractor who will team drive overnight with an effective delivery of one day. The extra driver costs $175. Handfield's holding cost is 35% annually for this kind of inventory. a) Which option is more economical? b) What productio n issues a re not included in the data presented? |
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