Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
12th Edition
ISBN: 9781259580093
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 15, Problem 1P

A manager at Strateline Manufacturing must choose between two shipping alternatives: two-day freight. Using five-day freight. Using five-day freight would cost $135 less than using two-day freight. The primary consideration is holdi.t1g cost, which is $10 per unit a year. Two thousand items are to be shipped. Which alternative would you recommend? Explain.

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A manager at Strateline Manufacturing must choose between two shipping alternatives: two-day freight and five-day freight. Using five-day freight would cost $180 less than using two-day freight. The primary consideration is holding cost, which is $8 per unit a year. 2,300 items are to be shipped.  Which alternative would you recommend?
After applying the NWC Rule for the initial tableau of the given transportation model, evaluate the vacant cells. What is the cell which has the most negative evaluation value and what is the cell evaluation value? DESTINATION SOURCE DEMAND X Y N OX-R; 1 OY-S; -1 OX-S; -1 OY-S; -2 P 75 8 12 EI 11 Q 80 5 8 11 R 120 7 10 10 S 50 11 13 14 SUPPLY 100 125 100 325
FAS (Free alongside Ship) and FOB (Free on Board) are rules for which kind of transport?
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