Your options for shipping $96,970 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 32 days at a cost of $3,370, or (2) truck the parts to Los Angeles andthen ship at a total cost of $5,180. The second option will take only 20 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year.If you have a third option and it costs only $4,440 and also takes 20 days, what is your most economical plan?The daily holding cost of Alternative 1 is $ 79.70 . (Enter your response rounded to two decimal places.)The daily cost of faster shipping with Alternative 2 is $ 150.83. (Enter your response rounded to two decimal places.)The daily cost of faster shipping with Alternative 3 is $(Enter your response rounded to two decimal places.)

To determine the most economical plan, we need to calculate the total cost of each option and then…

Answered: Your options for shipping $96,970 of…

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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The hotels in the town received lead information that there was a huge baseball game coming to town in April. Accordingly, the three properties decided on and implemented the rates to be charged. Rain hotel has been in business for a while and always seeks to have all rooms sold out, hence he charges a reasonable rate. Tourree Resort’s Manager realizes that the game is coming and seeks to maximize on the constrained supply sets a higher rate on the other hand Andulasca Resort positions himself as being competitive and sets what he considers to be a reasonable rate. Each property has 200 rooms Questions What do you think about each property’s approach? Which property do you think received the best revenue? The sale and revenue for each property is outlined as follows: Description Rain Hotel Tourree Resort Andulasca Resort Occupied Rooms 200 78 166 ADR 69 249 149 BAR 69 249 149 Revenue $ 13, 8000…
Please solve all parts very soon
Company C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges Company C&A $30 per order and $50 per bottle. Company C&A’s annual holding cost percentage is 40%. Assume Company C&A operates 50 weeks in a year. What should C&A’s EOQ for this item be? What is C&A’s total annual cost using this EOQ?
gainesvile cigar stocks cuban cigars that have variable lead times because of the difficulty in importing the product: lead time is normally distributed with an average of 6 weeks and a standard deviation of 2 weeks. demand is also a variable and normally distributed with a mean of 200 cigars per week and a standard deviation of 25 cigars. a) for a 90% of service level, what is the rop?
Consider the company in Question 1. Now the company is considering working with a local supplier. Since the local supplier is located close to the company, there is no restriction on the frequency of the orders. The purchasing cost from this local supplier is $80 per unit. Every time they place an order there is a fixed shipping cost of $12. Holding cost is again based on 20% annual interest rate. Calculate the economic order quantity. Calculate the total annual cost the company will incur with this supplier if they use the order quantity you found in (a) (Total Annual Cost = Annual Ordering Cost + Annual Inventory Holding Cost + Annual Purchasing Cost) The company is also considering producing the product at home. The production rate is 12000 units per year. They estimate that the setup cost is $20 per setup. The production cost is $60 per unit. The holding cost is based on the annual interest rate and the production cost of the product. Calculate the economic production quantity. How…
Please do it by hand not in excel
Prob 4: Westside Auto purchases a component used in the manufacture of automobile generators directly from the supplier. Westside's generator production operation will require 2000 components per month throughout the year (24,000 units annually). Assume that the ordering costs are $20 per order, the unit cost is $2.50 per component, and annual holding costs are 25% of the value of the inventory. Westside has 250 working days per year and a lead time of 4 days. Current production line has an annual capacity of 30,000 units. Answer the following inventory policy questions: a. Rewrite the inputs using standard notations (D, Co, Ch, ... ) b. What is the reorder point? c. What is the cycle time? d. What are the optimal order quantity and the total annual cost? e. Calculate the optimal production lot size.
PM Computers assembles personal computers from generic components. It purchases its color monitors from a manufacturer in Taiwan; thus, there is a long and uncertain lead time for receiving orders. Lead time is normally distributed, with a mean of 25 days and a standard deviation of 10 days. Daily demand is also normally distributed, with a mean of 2.5 monitors and a standard deviation of 1.2 monitors. Determine the safety stock and reorder point corresponding to a 90% service level.
Describe the perpetual and the periodic inventory systems. How are they different?
You are a purchasing manager in charge of stocking a certain type of product. Weekly demand for these products is normally distributed, with a mean of 100 and a standard deviation of 50. Holding costs are 25%, and you must hold a level of inventory corresponding to a cycle service level of 95%. You are faced with two suppliers, QUALITY Products and BEST Products, who offer the following terms. QUALITY sells the products for €5,000 with a minimum order of 100, and a lead time of 1 week with a standard deviation of 0.1 week. BEST sells the transformer for €4,800, has a minimum batch of 1,000, a lead time of 5 weeks, and a lead-time standard deviation of 4 weeks. If you could use both suppliers, how would you structure your orders? Describe the dimensions of supplier performance that affect total cost
Buckley Enterprise sells a product that cost $450 per unit and has a monthly demand of 5,000units. The annual holding cost per unit is calculated as 5% of the unit purchase price. It costs thebusiness $75 to place a single order. Currently the business places 12 orders each year.i) What is the total stock administrative cost of Buckley’s current inventory policy?ii) Is this the entity’s cost minimizing solution for this product each year? Explain.
1. Padilla Electronics stocks and sells a particular brand of microcomputer. It costs the firm $450 each time it places an order with the manufacturer for the microcomputers. The cost of carrying one microcomputer in inventory for a year is $170. The store manager estimates that total annual demand for the computers will be 1,200 units, with a constant demand rate throughout the year. Orders are received within the minutes after placement from a local warehouse maintained by the manufacturer. The store policy is never to have stock outs of the microcomputers. The store is open for business everyday of the rear except Christmas day. In reference to problem no. 1, determine the minimum total annual inventory cost

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