Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a) Evaluate the total cost for Golden Freightways option (50-100 CWT) in Example 14.2 on slides 2728 of Ch14 b) Assume the standard deviation of

image text in transcribed
image text in transcribed
a) Evaluate the total cost for Golden Freightways option (50-100 CWT) in Example 14.2 on slides 2728 of Ch14 b) Assume the standard deviation of demand per day is 80 , and the standard deviation of the lead time is 2 days for trucks. The safety inventory is based on the targeted cycle service level of 0.92 . Then what is the total cost for the Golden Freightways option? - Eastem Electric (EE) is a major appliance manufacturer with a large plant in the Chicago arca. EE purchases 120,000 motors each year from Westview at a price of 5120 per motor. Each motor averages about 10 pounds in weight, and EE has traditionally purchased lots of 3,000 motors. Westuiew ships each EE order within a day of receiving it. EE carries a 3afety inventory equal to 50 percent of the average demand for motors during the delivery lead time (h-25\% for inventory) - The plant manager in EE recerved several proposals (see the following table) for transportation and need to decide on the 1 cwt =100 pounds one to accept. Ship time by rail is 5 days ( 3 days for truchs) - What shoutd the plant manager do

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

African Charter For Internal Audit Of Cooperative Governance

Authors: Donfack MEKONTCHOU ROCHE

1st Edition

6205541777, 978-6205541777

More Books

Students also viewed these Accounting questions

Question

5. Identify three characteristics of the dialectical approach.

Answered: 1 week ago

Question

6. Explain the strengths of a dialectical approach.

Answered: 1 week ago

Question

4. Explain the strengths and weaknesses of each approach.

Answered: 1 week ago