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- 7. Novelis at Oswego NY supplies rolled aluminum sheets to Ford Motor's Kansas City plant to make F150 truck. The transportation manager of Novelis needs to choose from rail, waterway, and truck. The following information are gathered to make the transportation mode decision: Transportation Mode Transit Time, Days Rate $/cwt Shipment Size, cwt Rail 15 $2.50 12,000 Waterway 20 $0.80 200,000 4 $12.50 4,000 Truck The annual transportation volume is 2.5 million cwt. The value of aluminum is $500 per cwt. Inventory carrying cost for both companies is 20% per year. Please calculate the total logistics costs (transportation, inventory at Novelis, inventory at Ford, inventory in transit), and decide which transportation mode should be selected. (20 points)FAS (Free alongside Ship) and FOB (Free on Board) are rules for which kind of transport?Ancient history of logistics distribution regarding probability?
- Tsaltz Inc. of Hamilton, Ontario, is a distributor of starwars themed dog tags to pet store retailers. Its market area spans most of Ontario. The dog tags are made in Calgary, Alberta, and currently shipped to Ontario via motor carrier transportation. Easton, Director of Logistics, has asked his staff to evaluate using Rail car carrier service to ship the dog tags. He obtained the following data for you to make your recommendation which carrier is best for the company. Data: R= Annual rate of demand 5000 cases V= Value of cost of 1 unit of inventory $ 48.00 per case W= Carrying cost per dollar value of inventory per year 15% inventory carrying cost A= Cost of placing an order $ 37.50 cost per order In-transit inventory carry cost 9% Transit time using motor carrier (parcel ground) 2 days Transit time using Rail car carrier 1 days Motor carrier rate $ 0.66 per cwt (100 lbs) Rail car carrier rate $1.25 per cwt (100 lbs) Unit weight 25 pounds EOQ units 228.00 units EOQ pounts…es Problem 11-4 (LO2) An appliance manufacturer has a plant near Toronto that receives small electric motors from a manufacturer located in Winnipeg. The demand for motors is 118,000 units per year. The cost of each motor is $125. The motors are purchased in lots of 3.400 units. The ownership of motors transfers to the appliance manufacturer in Winnipeg. The question is which mode of transportation, truck or train, the appliance manufacturer should use to bring the motors from Winnipeg to Toronto. The railroad company charges $3 per motor. and it takes approximately seven days by train. The trucking company charges $5 per motor, but it takes only three days. The appliance manufacturer will keep 1,400 units as safety stock if a truck is used and 2.500 units as safety stock if a train is used for transportation. Assume 365 days per year. If the holding cost rate is 25 percent of unit cost per year, which mode of transportation will minimize total transportation and in-transit and safety…Please answer 5a and 5b
- The Bright Company wants to figure out the best way to ship their new product, Flying Widgets, from their factories through their warehouses to their retail outlets. They would like to set up a Transhipment table so they can use POM to find the least cost shipping routes. They have hired you to set up the Transhipment table based on the information below. You will be paid handsomely if you can come up with the correct table. Shipping Costs Shipping Costs 01 02 03 04 Wi W2 W3 W1 4. 2 F1 4 W2 4 F2 4 2 W3 4. 3. 4. Also, Flying Widgets can be shipped from Factory 1 to Factory 2 for $3 per unit. Factory 1 can produce 300 units and factory 2 can produce 100 units. Outlet 1 demand is 50 units, Outlet 2 is 150 units, Outlet 3 is 100 units, and Outlet 4 is 100 units.What are the average sales of S1, S2 and S3?٥ Which of the following modes of transportation is the best in Loss and Damage? Select one : 2 Rail 4. Sea Pipeline O