Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Input Data Number of suppliers = 8 Number of retail stores = 32 Demand per store from each supplier = 50000 Cost per large trailer

image text in transcribedimage text in transcribed
Input Data Number of suppliers = 8 Number of retail stores = 32 Demand per store from each supplier = 50000 Cost per large trailer = S 1,000 Cost per small truck = S 400 Large trailer capacity = 40000 Small truck capacity = 10000 Holding cost per unit per year = S 1.00 Cost / large truck stop = S 150 Cost / small truck stop = S 50 Change the number of stops / truck in Cells B25 to see how cost changes in Cell B33. Currently it is set to 1. Milk Run Using Small Trucks (Full) Number of stops / truck 200 .l Batch size / product / store = 50,000 Average inventory at store / product= 50,000 Number of shipments / store / year = 1 Truck cost / retail store / supplier /year = S 320,000 Total truck cost / year = S 81,920,000 Holding cost / retail store / supplier = S 50,000 Total holding cost / year= S 12,800,000 Total holding and truck cost = S 94,720,000 You will have to input your formulae or values in the blue cells B26 through B33 to compute the total cost in B33. These formulae or values may use the data provided and the choice you make in cell B25. Question 5: What if we chose to run \"milk runs\" with small full truckloads in lllinois? Suppose we combine shipments (for different retailers) in lllinois on the same truck (small one) and make stops to deliver at a regular frequency. Assume that a truck carries the same number of products for each store in each consolidated shipment (i.e., each truckload shipped). Refer to the worksheet Milk Runs-Illinois. Fix the number of stops per truck (that is the number of stores visited by a truck milk run) in cell B25. This is the same as the number of stores to be aggregated per truck from each supplier. Compute the total cost (holding + trucking) in cell B33. The process is similar to what you did in question 1. However, in this case it will also depend on the number of stops/truck you choose. Now change the number of stops/truck in B25 and recompute the total cost. What is the smallest total cost you can find (by changing values in cell B25) and how many stores (stops) should be combined per small truck

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

Small Business Management Entrepreneurship and Beyond

Authors: Timothy s. Hatten

5th edition

538453141, 978-0538453141

More Books

Students also viewed these General Management questions