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how do you solve these questions? Use the following information to answer questions 10-16 Karrie Industrial Products has a major assembly plant for flow valves
how do you solve these questions?
Use the following information to answer questions 10-16 Karrie Industrial Products has a major assembly plant for flow valves in Calgary. The main components it purchases are the digital controllers for these flow valves. Karrie recently signed a contract with a low-cost manufacturer in Mexico City to produce the controllers used in their assembly operation. Annual requirements are 9,000 digital fiontrollers. The annual holding cost rate for this type of item has been estimated at 10% per year of cost, and the cost of each controller is $750. The procurement manager is considering two modes of transportation to bring these items from Mexico City to Calgary. The following data are available for the two modes. (Year=365 days) Shipping Annual Mode Duration Cost Per Safety Unit Stock Air $65170 Truck 18 650 $28 Calculate the total freight for the truck option. (1 mark) QUESTION 11 2 points S Calculate the in-transit holding cost for the truck option. (2 marks) QUESTION 12 Calculate the total safety stock cost for the truck option. (2 marks) QUESTION 13 What is the total logistical cost for the air option? (2 marks) QUESTION 14 N 2 What is the total logistical cost for the truck option? (2 marks) Evaluate the results of your two choices. Recommend one option. Discuss what other issues you should consider in your choice. (2 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI V S Paragraph Arial 14px Ili . P O WORDS POWERED BY TINY Step by Step Solution
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