Question
A company has received a distribution offer from an external warehouse. The manager must decide if the new offer is more effective. In televisions, the
A company has received a distribution offer from an external warehouse. The manager must decide if the new offer is more effective. In televisions, the company currently moves 12,000 per month. Weight is 80lbs / TV.
Currently each truck moves 1000 tel per month. The operational cost is $ 15,000 / month per truck.
Income is $ 75 / cwt. The new distribution chain uses buses to move 450 televisions per month and an operating cost of $ 6500 per bus per month. Which proves to be the cheapest alternative?
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Get StartedRecommended Textbook for
Operations Management
Authors: William J Stevenson, Mehran Hojati
4th Canadian edition
978-1259270154, 1259270157, 978-0071091428
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