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Pipeline Inventory Cost Per Time = d(tt * rv) TC(q)/T = (F+ k)d q τυ +d(p+c+tt rv) + (s+ + (s + 77202) q 9 2Fd q* = min 2s+rv' Imax S = d(T + TL) + $¯¹ (Pa)˜d√√T+TL) Sd(TTL)+ss S = d(T + µL) + §¯¹ (Pa)√o}(T + µl) +ð²o² R=dTL +¹(pa)σd√√TL You order indoor houseplants from a supplier and ship them to your Marietta distribution center, and you arrange and pay for the transportation by less-than-truckload trucking carrier. Suppose that rack of houseplants weighs 5 lbs on average, and your LTL carrier quotes you a total shipment price structure as a function of the number of pounds shipped w as follows: 50 0w 100 0.5w 100 w≤400 LTL C(w)= 200 400w 600 0.33w 600w

Pipeline Inventory Cost Per Time = d(tt * rv) TC(q)/T = (F+ k)d q τυ +d(p+c+tt rv) + (s+ + (s + 77202) q 9 2Fd q* = min 2s+rv' Imax S = d(T + TL) + $¯¹ (Pa)˜d√√T+TL) Sd(TTL)+ss S = d(T + µL) + §¯¹ (Pa)√o}(T + µl) +ð²o² R=dTL +¹(pa)σd√√TL You order indoor houseplants from a supplier and ship them to your Marietta distribution center, and you arrange and pay for the transportation by less-than-truckload trucking carrier. Suppose that rack of houseplants weighs 5 lbs on average, and your LTL carrier quotes you a total shipment price structure as a function of the number of pounds shipped w as follows: 50 0w 100 0.5w 100 w≤400 LTL C(w)= 200 400w 600 0.33w 600w

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.Draw a figure that shows clearly the total cost C(q) of the LTL shipment as a function of the
number houseplant racks q shipped. 
 
2. Suppose you are attempting to determine the best shipment size q∗ to use to ship houseplants.
You find the following optimal quantities when you analyze different assumptions on the fixed
transportation cost F :
• When F = 0, ̄q = 75 racks
• When F = 50, ̄q = 25 (unconstrained), therefore ̄q = min{20, 25} = 20 racks
• When F = 200, ̄q = 85 racks
Explain which two shipment quantities might minimize total logistics cost (including facility
inventory costs) in this problem, and why?
Pipeline Inventory Cost Per Time = d(tt * rv) TC(q)/T = (F+ k)d q τυ +d(p+c+tt rv) + (s+ + (s + 77202) q 9 2Fd q* = min 2s+rv' Imax S = d(T + TL) + $¯¹ (Pa)˜d√√T+TL) Sd(TTL)+ss S = d(T + µL) + §¯¹ (Pa)√o}(T + µl) +ð²o² R=dTL +¹(pa)σd√√TL
Transcribed Image Text:Pipeline Inventory Cost Per Time = d(tt * rv) TC(q)/T = (F+ k)d q τυ +d(p+c+tt rv) + (s+ + (s + 77202) q 9 2Fd q* = min 2s+rv' Imax S = d(T + TL) + $¯¹ (Pa)˜d√√T+TL) Sd(TTL)+ss S = d(T + µL) + §¯¹ (Pa)√o}(T + µl) +ð²o² R=dTL +¹(pa)σd√√TL
You order indoor houseplants from a supplier and ship them to your Marietta distribution center, and you arrange and pay for the transportation by less-than-truckload trucking carrier. Suppose that rack of houseplants weighs 5 lbs on average, and your LTL carrier quotes you a total shipment price structure as a function of the number of pounds shipped w as follows: 50 0w 100 0.5w 100 w≤400 LTL C(w)= 200 400w 600 0.33w 600w
Transcribed Image Text:You order indoor houseplants from a supplier and ship them to your Marietta distribution center, and you arrange and pay for the transportation by less-than-truckload trucking carrier. Suppose that rack of houseplants weighs 5 lbs on average, and your LTL carrier quotes you a total shipment price structure as a function of the number of pounds shipped w as follows: 50 0w 100 0.5w 100 w≤400 LTL C(w)= 200 400w 600 0.33w 600w
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