Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 11.S, Problem 14P

Your options for shipping $100,000 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 30 days at a cost of $3,800 or (2) truck the pans to Los Angeles and then ship at a total cost of $4,800. 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.

a) Which option is more economical?

b) What customer issues are not included in the data presented?

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Your options for shipping ​$104,800 of machine parts from Baltimore to Kuala​ Lumpur, Malaysia, are​ (1) use a ship that will take 30 days at a cost of ​$3,370​, or​ (2) truck the parts to Los Angeles and then ship at a total cost of ​$5,030. The second option will take only 18 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 ​$4,080 and also takes 18 ​days, what is your most economical​ plan? Part 2 The daily holding cost of Alternative 1 is ​$________. ​(Enter your response rounded to two decimal​ places.) Part 3 The daily cost of faster shipping with Alternative 2 is ​$________. ​(Enter your response rounded to two decimal​ places.) Part 4 The daily cost of faster shipping with Alternative 3 is ​$________. ​(Enter your response rounded to two decimal​ places.) Part 5 ▼   Alternative 1? Alternative 2? Alternative 3? is more economical.
Your options for shipping $103,810 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 29 days at a cost of $3,670, or (2) truck the parts to Los Angeles and then ship at a total cost of $4,970. The second option will take only 18 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 $4,030 and also takes 18 days, what is your most economical plan? The daily holding cost of Alternative 1 is $ (Enter your response rounded to two decimal places.)
Your options for shipping $100,000 of machineparts from Baltimore to Kuala Lumpur, Malaysia, are (1) usea ship that will take 30 days at a cost of $3,800 or (2) truck theparts to Los Angeles and then ship at a total cost of $4,800.The second option will take only 20 days. You are paid via aletter of credit the day the parts arrive. Your holding cost isestimated at 30% of the value per year.a) Which option is more economical?b) What customer issues are not included in the datapresented?

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Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)

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