Monczka-Trent Shipping is the logistics vendor for Handfield Manufacturing Co. in Ohio. Handfield has daily shipments of a power-steering pump from its Ohio plant to an auto assembly line in Alabama. The value of the standard shipment is $253,040. Monczka-Trent has two options: (1) its standard 2-day shipment or (2) a subcontractor who will team drive overnight with an effective delivery of 1 day. The extra driver costs $180. Handfield's holding cost is 35% annually for this kind of inventory. a) is more economical, with a daily cost of $ (Enter your response as a whole number.) b) What production issues are not included in the data presented? OA. Potential delay in the production process. ○ B. The varying fuel costs of alternative 1 and 2. ○ C. Handfield's cost of holding the item for an additional day if it chooses to ship in 2 days instead of 1. ○ D. All of the above. ○ E. Only A and B.
Monczka-Trent Shipping is the logistics vendor for Handfield Manufacturing Co. in Ohio. Handfield has daily shipments of a power-steering pump from its Ohio plant to an auto assembly line in Alabama. The value of the standard shipment is $253,040. Monczka-Trent has two options: (1) its standard 2-day shipment or (2) a subcontractor who will team drive overnight with an effective delivery of 1 day. The extra driver costs $180. Handfield's holding cost is 35% annually for this kind of inventory. a) is more economical, with a daily cost of $ (Enter your response as a whole number.) b) What production issues are not included in the data presented? OA. Potential delay in the production process. ○ B. The varying fuel costs of alternative 1 and 2. ○ C. Handfield's cost of holding the item for an additional day if it chooses to ship in 2 days instead of 1. ○ D. All of the above. ○ E. Only A and B.
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
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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