Dell Computer Inc. bought $5000 of materials from its vendor for a particular order of 100 computers. To deliver this particular order, the Dell driver needs to stop in 5 different places to cover a total distance of 300 miles; the cost per stop is $0.5 and cost per mile is $0.3 since the company is using UPS for delivery. The variable transport cost is $0.25, the fixed cost of handling a pallet of computers (pallet size=10) is $15, and the variable cost of handling the same pallet is $8. Furthermore, assume Dell holds its inventory at a cost of $0.25/year against every $1 of inventory. The shipping frequency is 5 weeks and there are 52 weeks a year.

Please calculate the total cost per item

Dell Computer Inc. bought $5250 of materials from its vendor for a particular order of 50 computers. To deliver this particular order, the Dell driver needs to stop in 4 different places to cover a total distance of 250 miles; the cost per stop is $0.43 and cost per mile is $0.5 since the company is using UPS for delivery. The variable transport cost is $0.25, the fixed cost of handling a pallet of computers (pallet size =8 ) is $10, and the variable cost of handling the same pallet is $7.50. Furthermore, assume Dell holds its inventory at a cost of $0.25/ year against every $1 of inventory. The shipping frequency is 4 weeks and there are 52 weeks a year. Total Cost per Item = Holding Cost per Item + Shipping Cost per Item + Handling Cost per Item =rv(2T)+cs(Q1+ns)+cd(Qd)+cv+cvh+Qcfhnh=0.25505250(24/52)+0.43(501+4)+0.5(50250)+0.25+87.5+5010[50/8]