Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i have already seen in cheeg i want new answer 7. Novelis at Oswego NY supplies rolled aluminum sheets to Ford Motor's Kansas City plant

i have already seen in cheeg i want new answer image text in transcribed

7. Novelis at Oswego NY supplies rolled aluminum sheets to Ford Motor's Kansas City plant to make F150 truck. The transportation manager of Novelis needs to choose from rail, waterway, and truck. The following information are gathered to make the transportation mode decision: Transportation Mode Transit Time, Days Rate $/cwt Shipment Size, cwt Rail 15 $2.50 12,000 Waterway 20 $0.80 200,000 Truck 4 $12.50 4,000 The annual transportation volume is 2.5 million cwt. The value of aluminum is $500 per cwt. Inventory carrying cost for both companies is 20% per year. Please calculate the total logistics costs (transportation, inventory at Novelis, inventory at Ford, inventory in transit), and decide which transportation mode should be selected. (20 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: kieso, weygandt and warfield.

14th Edition

9780470587232, 470587288, 470587237, 978-0470587287

More Books

Students also viewed these Accounting questions