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Input Data Number of suppliers = Number of retail stores = -Demand per store from each supplier = Fixed cost per truck = 5 Truck capacity = Holding cost per unit per year = 3 Cost / stop = 9 10 Direct Shipping Using Full Trucks 11 Batch size, Q = Sunil Chopra: 2 Change this entry to 223) the desired demand per store 960,000 5,000 40,000 Sunil 0.20 Chopra: 02 $ We present Direct ship supplier to Direct ship with the op retail store Milk run us deliveries to retail store Uus $ 100 Direct Shipping Using Optim Optimal batch size = 40,000 20,000 Average inventory at store = 12 Average inventory at store = 13 Number of shipments/year = 14 Truck cost / retail store / supplier = 24 Number of shipments/year Truck cost/retail store / su $ 122,400 $ Total truck cost = 15 Total truck cost = 16 Holding cost/retail store / supplier = 54,590,400 4,000 S Holding cost/retail store / 17 Total holding cost = $ $ 1,784,000 Total holding cost = $ 56,374,400 Total holding and truck cost Sunil Chopra: Demand/ Batch Size 18 Total holding and truck cost = 19 20 Milk Run Using Full Trucks 21 Number of stores / truck 22 Batch size = 23 Average inventory at store = 24 Number of shipments/year = 25 Truck cost / retail store / supplier = 26 Total truck cost = 27 Holding cost/retail store / supplier = 28 Total holding cost = 29 Total holding and truck cost = 30 31 $ $ $ $ $ 20,000 10,000 48 124,800 55,660,800 2.000 892,000 56,552,800 Sunil Chopra: Change this entry to 1. 2.4 to see how the number of deliveries per milk run affects Input Data Number of suppliers = Number of retail stores = -Demand per store from each supplier = Fixed cost per truck = 5 Truck capacity = Holding cost per unit per year = 3 Cost / stop = 9 10 Direct Shipping Using Full Trucks 11 Batch size, Q = Sunil Chopra: 2 Change this entry to 223) the desired demand per store 960,000 5,000 40,000 Sunil 0.20 Chopra: 02 $ We present Direct ship supplier to Direct ship with the op retail store Milk run us deliveries to retail store Uus $ 100 Direct Shipping Using Optim Optimal batch size = 40,000 20,000 Average inventory at store = 12 Average inventory at store = 13 Number of shipments/year = 14 Truck cost / retail store / supplier = 24 Number of shipments/year Truck cost/retail store / su $ 122,400 $ Total truck cost = 15 Total truck cost = 16 Holding cost/retail store / supplier = 54,590,400 4,000 S Holding cost/retail store / 17 Total holding cost = $ $ 1,784,000 Total holding cost = $ 56,374,400 Total holding and truck cost Sunil Chopra: Demand/ Batch Size 18 Total holding and truck cost = 19 20 Milk Run Using Full Trucks 21 Number of stores / truck 22 Batch size = 23 Average inventory at store = 24 Number of shipments/year = 25 Truck cost / retail store / supplier = 26 Total truck cost = 27 Holding cost/retail store / supplier = 28 Total holding cost = 29 Total holding and truck cost = 30 31 $ $ $ $ $ 20,000 10,000 48 124,800 55,660,800 2.000 892,000 56,552,800 Sunil Chopra: Change this entry to 1. 2.4 to see how the number of deliveries per milk run affects