2. Linda has to make a decision soon. Given the information provided in the case, what would...
Question:
2. Linda has to make a decision soon. Given the information provided in the case, what would you advise her to do?
ABC Footwear Limited is a leading manufacturer and bulk exporter of leather shoes. The company procures its leather from three suppliers: A, B, and C. The distance of these suppliers from the company is 230, 180, and 370 miles, respectively. Currently, the company follows a separate procurement policy and the leather is transported in medium-sized trucks from each supplier. The company responsible for transporting the leather charges a line-haul cost of $1.80 per mile for each route. The transit time for each supplier is around one day and deliveries are made on a daily basis. Linda Warnock, the newly joined logistics manager, has been given the key task of reducing the cost of transporting the leather.
Step by Step Answer:
Introduction To Materials Management
ISBN: 9781292162355
8th Global Edition
Authors: J. R. Tony Arnold, Chapman, Stephen N., Lloyd M. Clive