CASE 9-2: BASEBALL CARD EMPORIUM 7 days 1 days Annual demand, cases of cards Case Value Price Inventory carrying cost Cost per Order to replenish inventory In Transit inventory carrying cost Transit Time using motor carrier Cycle Time using motor carrier Transit Time using air carrier Cycle time using air carrier Motor carrier rate per cwt (100 lbs.) Air carrier rate per cwt (100 lbs.) DATA R V A Y Motor transit time (MTT) 7.000 units $ 96 30% $ 75 18% 4 Motor cycle time (MCT) Air transit time (ATT) Air cycle time (ACT) 2 days Freight Motor 1,20 per unit Freight Air $ 2,50 per unit Weight 50 pounds S=VW $ to Motor cwt 29 0,60 Air cwt Days per year Order Cycle (OC) Unnit Weight per case Inventory carrying cost per unit per year ($ per unit per year) 1,25 365 10 days (Days per year*Q)/R QUESTION 1: EOQ for Nittany Fans in units? In pounds? Q = SQRT (2RA/VW) Q= Q= 190,94 units pounds = 2 RA VW QUESTION 2: Total Cost (not considering transportation-related costs) of the EOQ TAC = (1/2)* QVW + AR/Q TAC = 0VW + A TAC= R Q QUESTION 3: Total Cost for using motor carrier transportation TIC motor carrier = QVW + AR/Q +(MTT/OC)*QVY TAC motor = TIC Motor + Motor cwt *R TIC motor= TAC motor= QUESTION 4: Total Cost for using air carrier transportation TIC air = QVW + AR/Q + (ATT/OC)*QVY TAC air = TIC air + Air cwt * R TIC air= TAC air= QUESTION 5: Which alternative should BBE use? Please put a check mark in your recommendation Air Carrier Motor Carrier