We have 6 stores that get products from 3 suppliers. Demand of each product is 9000 units and the truck capacity is 3000 units. each time we should pay 800$ per load and 100$ per delivery. the cost of keeping inventory is 0.2 per unit per year. Which one is true considering the milk run sharing is 2 stores per shipment. A) The transportation cost of direct shipment is 48600 and is more than milk B) The transportation cost of direct shipment is 48600 and is less than milk run transportation cost C) The inventory cost of direct shipment is 2700 and is more than inventory cost of milk run D) The inventory cost of direct shipment is 5400 and is less than inventory cost of milk run
We have 6 stores that get products from 3 suppliers. Demand of each product is 9000 units and the truck capacity is 3000 units. each time we should pay 800$ per load and 100$ per delivery. the cost of keeping inventory is 0.2 per unit per year. Which one is true considering the milk run sharing is 2 stores per shipment. A) The transportation cost of direct shipment is 48600 and is more than milk B) The transportation cost of direct shipment is 48600 and is less than milk run transportation cost C) The inventory cost of direct shipment is 2700 and is more than inventory cost of milk run D) The inventory cost of direct shipment is 5400 and is less than inventory cost of milk run
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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We have 6 stores that get products from 3 suppliers. Demand of each product is 9000 units and the truck capacity is 3000 units. each time we should pay 800$ per load and 100$ per delivery. the cost of keeping inventory is 0.2 per unit per year. Which one is true considering the milk run sharing is 2 stores per shipment.
A) The transportation cost of direct shipment is 48600 and is more than milk
B) The transportation cost of direct shipment is 48600 and is less than milk run transportation cost
C) The inventory cost of direct shipment is 2700 and is more than inventory cost of milk run
D) The inventory cost of direct shipment is 5400 and is less than inventory cost of milk run
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