Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Machine Supply Co. plans to open to its customers in the area. The products will be shipped from main depot located in Memphis, TN
2. Machine Supply Co. plans to open to its customers in the area. The products will be shipped from main depot located in Memphis, TN to the selected branch location. The company currently considers two locations (small and large) for its new branch. While the small location can store up to 700 units of the product, the large one can store up to 1100 units (more than these amounts cannot be stored at any time). However, the large location costs an additional $1000 per month to rent compared to the small location. Transportation company charges different amounts for small and large locations as provided in the table below. The expected demand in the greater Houston area is 38000 units per year and each unit costs $250. The inventory holding rate per year is 25%. Given the below information about two locations and transportation company. Which branch location should be chosen by Machine Supply CO.? Hint: Can you find the economic order quantity for each location? (50 Points) a new branch in Houston, TX to provide local support Fixed Transportation Cost per Delivery In-Transit Time (days) Name Small $600 3 $1100 Large 2 2. Machine Supply Co. plans to open to its customers in the area. The products will be shipped from main depot located in Memphis, TN to the selected branch location. The company currently considers two locations (small and large) for its new branch. While the small location can store up to 700 units of the product, the large one can store up to 1100 units (more than these amounts cannot be stored at any time). However, the large location costs an additional $1000 per month to rent compared to the small location. Transportation company charges different amounts for small and large locations as provided in the table below. The expected demand in the greater Houston area is 38000 units per year and each unit costs $250. The inventory holding rate per year is 25%. Given the below information about two locations and transportation company. Which branch location should be chosen by Machine Supply CO.? Hint: Can you find the economic order quantity for each location? (50 Points) a new branch in Houston, TX to provide local support Fixed Transportation Cost per Delivery In-Transit Time (days) Name Small $600 3 $1100 Large 2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started