esProblem 11-4 (LO2)An appliance manufacturer has a plant near Toronto that receives small electric motors from a manufacturer located in Winnipeg. Thedemand 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. Theownership 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. Theappliance 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 fortransportation. Assume 365 days per year. If the holding cost rate is 25 percent of unit cost per year, which mode of transportation willminimize total transportation and in-transit and safety holding cost? Hint. The value of a motor in Toronto for calculating the safetystock holding cost is $125 plus cost of freight per unit.Mode of transportation(Click to select)

Demand for motors= 118,000 units per yearLot size= 3400 units Cost of motor= $125For Truck…

Answered: 4 Problem 11-4 (LO2) An appliance…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Q. Define the following with example: Transportation Model Assignment Model Replacement Model Inventory Control
7) Tax declarations, which can be done online as well as by mail and by fax, is an example of single-channel service penetration. Select one: a. False b. True
This is question 24 under section 3.5. It is missing Mr. Meadows Cookie Company makes a variety of chocolate chip cookies in the plant in Albion, Michigan. Based on orders received and forecasts of buying habits, it is estimated that the demand for the next four months is 850, 1,260, 510, and 980, expressed in thousands of cookies. During a 46-day period when there were 120 workers, the company produced 1.7 million cookies. Assume that the number of workdays over the four months are respectively 26, 24, 20, and 16. There are currently 100 workers employed, and there is no starting inventory of cookies. a.What is the minimum constant workforce required to meet demand over the next four months? b.Assume that inventory cost is 10 cents per cookie per month; hiring cost is $1000 per worker, and firing cost is $2000 per worker, payroll cost is $75 per day per worker. Evaluate the cost of the plan derived in part (a). c. Formulate as a linear programming problem. Be sure to define…
Please do not give solution in image format thanku 1. Current total inventory level (I E) of a company is 10,000 units, which are held at 4 different facilities (n E). Next year, the company plans to open 12 new facilities. Provide an estimate on the total future inventory level (I F) for the company. a. 60,000 units b. 10,000 units c. 40,000 units d. 20,000 units e. 17,321 units
7. Amazon.com is not an example of market since buyers and sellers cannot meet physically there (True/False)
BUS499 Discussion QuestionnAssignment 1: Discussion QuestionSustainable competitive advantage is the “holy grail” of corporate strategy, but it is elusive.Using all you have learned to date about Harley-Davidson, analyze whether or not Harley-Davidson has a source ofsustainable competitive advantage. Defend your answer using examples from your readings, the annual report, and other sources.****** Please provide 2 questions with answers in relating to the discussion. Please make sure this is attached with the assignment. ********
Suppose the Motorboat dealership in part (a) above dealing in costly motorboats follows the policy of carrying a few units in stock and ordering for replenishment as soon as a motorboat is sold from the stock. The unit cost of the motorboat is $60,000 and the holding or carrying cost is $5,000 per unit per year. The management of Motorboat dealership believe that the shortage cost due to waiting for the motorboat is $2,000 per unit short per month. The demand is seen to be Poisson distributed with an average rate of 2 units per month and the replenishment lead time can be considered to be exponential with a mean of one month. Considering the system as an M/M/s queuing system, find the optimal stock to be carried which can minimize the sum total of carrying and shortage costs.
Which of the following statements about using drones to support logistics is NOT true? 1.Using drones for delivery of parcels is absolutely legal in the U.S. and does not require approval by the Federal Aviation Administration. 2. Drones are able to fly autonomously, without human intervention. 3. Due to GPS, drones can find the appropriate package delivery location, but they are not able to detect objects such as people, animals, cars. 4. The three primary capabilities of drones include sensors, navigation and stabilization.
QuickBooks Online allows the creation of bank rules. In which 3 situations would they be useful?(Select all that apply) A. To automatically split a transaction B. To automatically assign a transaction type C. To automatically assign a payee to the transaction D. To automatically delete a transaction E. To automatically record a monthly journal entry
pls answer and provide solution
Please do not give solution in image format thanku 1) Determine which shipping alternative would be most economical to ship 80 boxes of parts when each box has a price of $200 and holding costs are 30 percent of price, given this shipping information: overnight, $300, two-day, $260, six-day, $180.
Happy Henry’s car dealer sells an imported car called the EX123. Once everythree months, a shipment of the cars is made to Happy Henry’s. Emergencyshipments can be made between these three-month intervals to resupply the carswhen inventory falls short of demand. The emergency shipments require twoweeks, and buyers are willing to wait this long for the cars, but will generally goelsewhere before the next three-month shipment is due.From experience, it appears that the demand for the EX123 over a three-monthinterval is normally distributed with a mean of 60 and a variance of 36. The cost ofholding an EX123 for one year is $500. Emergency shipments cost $250 per carover and above normal shipping costs.a. How many cars should Happy Henry’s be purchasing every three months?b. Repeat the calculations, assuming that excess demands are back-ordered fromone three-month period to the next. Assume a loss-of-goodwill cost of $100 forcustomers having to wait until the next three-month period and a…

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

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

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS