1A supplier to your company has offered you a reduced price per unit on a component if you agree to purchase the component in higher order quantities.Currently, you order

4,000

units each time an order is placed for thecomponent, and you pay

$9.50

per unit. Your ordering costs are estimated to be

$36

per order regardless of the order size. Transportation costs are estimated to be

$0.40

per unit. Your cost to hold a component part in inventory is estimated at

22%

annually based on the cost of the purchased item. The supplier has offered you a cost of

$8.10

per unit if you increase your purchasing quantity to

6,000.

Currently, your company purchases

111,000

of these componentsannually, and this total demand is expected to remain constant for the foreseeable future. Should you continue with your currentpolicy, or should you take the incentive offered by thesupplier?

Part 2

The total landed cost with the order quantity size of

4,000

units is

$enter your response here.

(Enter your response rounded to the nearestdollar.)

Part 3

The total landed cost with the bulk ordering quantity of

6,000

units is

$enter your response here.

(Enter your response rounded to the nearestdollar.)

Part 4

Based on the landed cost tradeoffcalculations, the company should choose the

order quantity size of 4,000 units

bulk ordering quantity of 6,000 units

.

2)A company must decide where to locate a new shipping facility. Use the weighted center of gravity method to identify the location for the new shipping facility.

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Click the icon to view the Cartesian coordinates of the cities.

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Click the icon to view the total quantity to be shipped from the shipping facility to the cities.

Part 2

The new shipping facility will be located at Cartesian coordinates

(enter your response here,

enter your response here).

(Enter your responses rounded to one decimalplace.)

3)A company would like to calculate acost-to-cost trade-off analysis for the followingscenario:

Cost to ship by rail

=$0.082

per unit per kilometer shipped

Cost to ship by truck

=$0.124

per unit per kilometer shipped

Number of units to be shipped

=115,000

Cost of delay due to slower shipping time if rail is

used=$12,000

Provide acost-to-cost trade-off calculation for therail-versus-truck alternative.

Part 2

Based on thecost-to-cost trade-offcalculations, the company should ship by

rail

truck

at a total cost(including any delaycosts, whereapplicable) of

$enter your response here.

(Enter your response as a wholenumber.)

4)A company holds inventory at warehouses inAmarillo, St.Louis, Knoxville, and Camden. Items are shipped from the warehouses to retail outlets inLouisville, Atlanta,Miami, Phoenix, and Los Angeles. The shipping plan that satisfies the weekly demand requirements at the retail outlets for the minimum total shipping cost is shown below. Identify the lowest total shipping cost.

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Click the icon to view the weekly demand at the retail outlets.

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Click the icon to view the potential weekly shipping capacity at each of the warehouses.

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Click the icon to view the per unit shipping costs to ship from the warehouses to the retail outlets.

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Click the icon to view the optimal shipping plan.

Part 2

The minimum total shipping cost is

$enter your response here.

(Enter your response rounded to the nearestcent.)

5)A company currently has

10

stocking locations that hold a total of

13,000

units of safety stock inventory. If the company expands to

27

stockinglocations, what would be the new safety stock inventory level for thecompany?

Part 2

The new safety stock inventory level for the company will be

enter your response here

units.

(Enter

your response rounded to the nearest whole

number.)