When Vidalia onions are ready, the entire 13 county (plus parts of seven other counties) area in Georgia where they are grown is devoted to the harvest, packaging and shipping of this delicacy. The Onion Shack currently purchases 120,000 bags of onions each year at a price of $100 per bag (a bag is ten pounds). Onion Shack has historically purchased in lots of 3000 bags. Transit time and capacity vary as indicated in the table (lead time is 2 days more than transit time). The safety inventory that Onion Shack requires is 30% of lead time demand and the holding cost for a bag is 15% of cost. Carrier Quantity Shipped (cwt) Quantity shipped (bags) Shipping cost ($/cwt) Transit time (days) Mashburn Rail 200+ 2000+ $2.10 5 Sylvia Express 100+ 1000+ $2.35 3 Anita Enterprises 250+ 2500+ $1.35 3 Smith Trucking 250+ 2500+ $1.00 3 Use Scenario 14.1 to determine the inventory holding cost of the Mashburn Rail option if the Onion Shack purchases 240,000 bags of Vidalia onions each year. Group of answer choices $72,990 $61,740 $85,035 $63,135
When Vidalia onions are ready, the entire 13 county (plus parts of seven other counties) area in Georgia where they are grown is devoted to the harvest, packaging and shipping of this delicacy. The Onion Shack currently purchases 120,000 bags of onions each year at a price of $100 per bag (a bag is ten pounds). Onion Shack has historically purchased in lots of 3000 bags. Transit time and capacity vary as indicated in the table (lead time is 2 days more than transit time). The safety inventory that Onion Shack requires is 30% of lead time demand and the holding cost for a bag is 15% of cost. Carrier Quantity Shipped (cwt) Quantity shipped (bags) Shipping cost ($/cwt) Transit time (days) Mashburn Rail 200+ 2000+ $2.10 5 Sylvia Express 100+ 1000+ $2.35 3 Anita Enterprises 250+ 2500+ $1.35 3 Smith Trucking 250+ 2500+ $1.00 3 Use Scenario 14.1 to determine the inventory holding cost of the Mashburn Rail option if the Onion Shack purchases 240,000 bags of Vidalia onions each year. Group of answer choices $72,990 $61,740 $85,035 $63,135
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Scenario 14.1 — Vidalia Onions
When Vidalia onions are ready, the entire 13 county (plus parts of seven other counties) area in Georgia where they are grown is devoted to the harvest, packaging and shipping of this delicacy. The Onion Shack currently purchases 120,000 bags of onions each year at a price of $100 per bag (a bag is ten pounds). Onion Shack has historically purchased in lots of 3000 bags. Transit time and capacity vary as indicated in the table (lead time is 2 days more than transit time). The safety inventory that Onion Shack requires is 30% of lead time demand and the holding cost for a bag is 15% of cost.
| Carrier | Quantity Shipped (cwt) | Quantity shipped (bags) | Shipping cost ($/cwt) | Transit time (days) |
| Mashburn Rail | 200+ | 2000+ | $2.10 | 5 |
| Sylvia Express | 100+ | 1000+ | $2.35 | 3 |
| Anita Enterprises | 250+ | 2500+ | $1.35 | 3 |
| Smith Trucking | 250+ | 2500+ | $1.00 |
3
|
Use Scenario 14.1 to determine the inventory holding cost of the Mashburn Rail option if the Onion Shack purchases 240,000 bags of Vidalia onions each year.
Group of answer choices
$72,990
$61,740
$85,035
$63,135
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