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Annual Demand Unit cost = 20 Safety inventory 0.25 In-transit inventroy Cycle inventory in Cycle inventory in Safety inventory Transportation cost Total Rate per unit
Annual Demand Unit cost = 20 Safety inventory 0.25 In-transit inventroy Cycle inventory in Cycle inventory in Safety inventory Transportation cost Total Rate per unit Lead Time a Cost DC cost store cost cost 0.05 U.UB 0.1 0.7 10,000 8,000 3,500 1,000 Rail 25 Pipgyback 12 ruck In-transit inventroy Cycle inventory in Cycle inventory in Safety inventory Transportation cost Total Cost DC cost store cost DC "?" Rail Rate per unit Lead Time a 0.05 20 10,000 12 Truck 0.15 3,5D0 0.6 Hint: Consider the transportation cost+unit cost when calculating the cycle inventory in store cost and the safety inventory cost. Note: The store maintains 5 days of safety stack. For the analysis, consider 365 days per year. The daily derand for the product is 60 units. Annual Demand Unit cost = 20 Safety inventory 0.25 In-transit inventroy Cycle inventory in Cycle inventory in Safety inventory Transportation cost Total Rate per unit Lead Time a Cost DC cost store cost cost 0.05 U.UB 0.1 0.7 10,000 8,000 3,500 1,000 Rail 25 Pipgyback 12 ruck In-transit inventroy Cycle inventory in Cycle inventory in Safety inventory Transportation cost Total Cost DC cost store cost DC "?" Rail Rate per unit Lead Time a 0.05 20 10,000 12 Truck 0.15 3,5D0 0.6 Hint: Consider the transportation cost+unit cost when calculating the cycle inventory in store cost and the safety inventory cost. Note: The store maintains 5 days of safety stack. For the analysis, consider 365 days per year. The daily derand for the product is 60 units
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