EBK OPERATIONS MANAGEMENT
14th Edition
ISBN: 9781260718447
Author: Stevenson
Publisher: MCG COURSE
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Chapter 15, Problem 3P
A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $500 and B for $525. In addition, A offers a three-day rate of $460 and a nine-day rate of $400, and B offers a four-day rate of $450 and a seven-day rate of $410. Annual holding costs are 35 percent of unit price. Three hundred boxes are to be shipped, and each box has a price of $ 140. Which shipping alternative would you recommend? Explain.
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The Uptown Kiln is an importer of ceramics from overseas. It has arranged to purchase a particular type of ceramic pottery from a Korean artisan. The artisan makes the pottery in 120-unit batches and will ship only that exact number of units. The transportation and handling cost of a shipment is $7,600 (not including the unit cost). The Uptown Kiln estimates its annual demand to be 900 units. What storage and handling cost per unit does it need to achieve in order to minimize its inventory cost?
Can you please help me
Cooler Corporation is a manufacturer of cooling products. It purchases 14,400 units of a particular component (CK55) each year at a cost of $60 per unit. Cooler Corporation requires a 12% annual rate of return on investment. In addition, relevant carrying costs for insurance, material-handling, and breakage are $0.40 per unit per quarter, whereas warehousing rental cost is $12,000 per month. Relevant costs per purchase order are $144.00. Purchasing manager’s salary is $80,000 per year.
Required:
Calculate Cooler’s EOQ for CK55.
Calculate Cooler’s total ordering and carrying costs.
Assume that demand is uniform throughout the year and is known with certainty. The purchasing time is half a month. Calculate the reorder point for CK55.
Chapter 15 Solutions
EBK OPERATIONS MANAGEMENT
Ch. 15.2 - Prob. 1.1RQCh. 15.2 - Prob. 1.2RQCh. 15.2 - Prob. 2.1RQCh. 15.2 - Prob. 2.2RQCh. 15.2 - READING AT 3M, A LONG ROAD BECAME A SHORTER ROAD...Ch. 15.2 - READING AT 3M, A LONG ROAD BECAME A SHORTER ROAD...Ch. 15.14 - Prob. 1.1RQCh. 15.14 - Prob. 1.2RQCh. 15.14 - Prob. 2.1RQCh. 15.14 - Prob. 2.2RQ
Ch. 15 - Prob. 1DRQCh. 15 - Prob. 2DRQCh. 15 - Prob. 3DRQCh. 15 - Prob. 4DRQCh. 15 - Prob. 5DRQCh. 15 - Prob. 6DRQCh. 15 - Prob. 7DRQCh. 15 - Prob. 8DRQCh. 15 - Prob. 9DRQCh. 15 - Prob. 10DRQCh. 15 - Prob. 11DRQCh. 15 - Prob. 12DRQCh. 15 - Prob. 13DRQCh. 15 - Prob. 14DRQCh. 15 - Prob. 15DRQCh. 15 - Prob. 16DRQCh. 15 - Prob. 17DRQCh. 15 - Prob. 18DRQCh. 15 - Prob. 19DRQCh. 15 - Prob. 20DRQCh. 15 - Prob. 21DRQCh. 15 - Prob. 1TSCh. 15 - Prob. 2TSCh. 15 - Prob. 3TSCh. 15 - Prob. 1CTECh. 15 - Prob. 2CTECh. 15 - Prob. 3CTECh. 15 - Prob. 4CTECh. 15 - A manager at Strateline Manufacturing must choose...Ch. 15 - Prob. 2PCh. 15 - A manager must make a decision on shipping. There...Ch. 15 - Prob. 1CQCh. 15 - Prob. 2CQ
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