Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Armand Ladouceur, cabinetmaker, has been the owner of L'Artisan, a company specializing in the manufacture of wooden lighting fixtures, for more than 30 years. Over
Armand Ladouceur, cabinetmaker, has been the owner of L'Artisan, a company specializing in the manufacture of wooden lighting fixtures, for more than 30 years. Over the past few years, Mr. Ladouceur's business has experienced such significant growth that he is considering acquiring a second location. The making of the various parts would be carried out in the current workshop; thereafter, the parts would be transported to the new premises where they would then be assembled. Two modes of transport are possible, the transport costs and delivery times of which are as follows: Sender 1 Lead time Transport costs 1 day $100/box 2 days $90/box 3 days $80/box Sender 2 Lead time Transport costs 1 day $95/box 2 days $85/box 3 days $70/box Delivery involves 2,000 boxes per year valued at $800 each. The stock ownership rate is 15%. Shipper 1 guarantees its deliveries; it is therefore not necessary to keep a safety stock. Shipper 2 does not guarantee its deliveries, so it is important to keep a safety stock equivalent to 100 boxes per year. Question 1 Determine the costs of the different transport options of the shipper 1. (14 points, of which 2 are allocated for calculations) [Insert your answer here.] Question 2 Determine the costs of the different transport options of the shipper 2. (15 points, of which 3 are allocated for calculations) [Insert your answer here.] Question 3 Which shipper and which delivery time should Mr. Ladouceur choose? Explain. (4 poits)
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