How do you do alternative ve 2? 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 ata cost of $3,800, or (2) truck the parts to LOs Angeles and then ship at a total cost of $4,800. The second option will take only 20 days. Youare 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 $4,000 and also takes 20 days, what is your most economical plan? Assume 365 days per year.The daily holding cost of Alternative 1 is $ 82.19 . (Enter your response rounded to two decimal places.)The daily cost of faster shipping with Alternative 2 is $32.19. (Enter your response rounded to two decimal places.)

In the above question it is given that: Product cost = $100,000 Annual holding cost = 30% of the…

Answered: what is your most economical plan?

Business

Operations Management

what is your most economical plan?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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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 and then 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.)
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 machine partsfrom Baltimore to Kuala Lumpur, Malaysia, are ( I) use a shipthat will take 30 days at a cost of $3,800 or (2) truck the pa rts toLos Angeles and then ship at a total cost of $4,800. The secondoption will take only 20 days. You are paid via a Jetter of creditthe 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?
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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Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for the many rides at the parks. Eight Flags needs 30,000 gallons (D) of oil annually; the parks operate 50 weeks a year. Management is unsatisfied with the current supplier of oil and has obtained two bids from other suppliers. The data are contained in the following table. Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time (L) Annual Administrative Supplier Sharps Winkler 5,000 $5.200 $5.400 15,000 $3.500 $3.500 Cost/Unit (H) $0.76 $0.80 10,000 (p) $3.80 (wks) Cost $5,000 $4,000 $3.800 $3,800 $4.00 3 Which supplier and which shipping quantity will provide the lowest costs for Eight Flags? Using V and a shipping quantity of is the lowest cost alternative, with annual total costs to Eight Flags of $. (Enter your response as an integer.)
Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for the many rides at the parks. Eight Flags needs 30,000 gallons (D) of oil annually; the parks operate 50 weeks a year. Management is unsatisfied with the current supplier of oil and has obtained two bids from other suppliers. The data are contained in the following table. Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time (L) Annual Administrative 5,000 $5.000 Cost/Unit (H) $0.82 (p) 10,000 $3.500 $3,800 (wks) Supplier Sharps Winkler 15.000 Cost $3,100 $3,300 $4.10 $4,000 $5.200 $4.00 $0.80 6 $5,000 Which supplier and which shipping quantity will provide the lowest costs for Eight Flags? Using V and a shipping quantity of is the lowest cost alternative, with annual total costs to Eight Flags of $. (Enter your response as an integer.)