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Only need question 9 on this part, I posted 6-8 on another question but feel free to answer all 4 on one if you can
Only need question 9 on this part, I posted 6-8 on another question but feel free to answer all 4 on one if you can
Questions 6-9 refer to the following data KC Engineering Works (KCEW) sells compressors for air conditioning units to several HVAC dealers in the Midwest region. The annual demand for the compressors is 73,000 units. For the reasons of simplicity assume that the demand is uniform throughout the year. Each compressor unit weighs 10 lbs. KCEW buys the compressors at $150 a piece directly from the manufacturer based in Louisville, KY, in batch sizes that minimize its overall cost. They maintain a safety stock that is 25% of the demand during the lead-time and that the holding cost is 20% of the cost per compressor per year. They have received the following transportation proposals from different providers. Assume 365 days per year. (1 cwt - 100 lbs) Carrier Name Rate (S/cwt) Lead Time (days) Minimum Shipment (cwt) 300+ 50+ 100-200 200-400 BNSF Railway C.H. Robinson UPS Supply Chain Solutions 12 8.50 14.00 12.00 10.00 6.50 8 9 9 400+ Question 6 (8 points) What is KCEW's annual holding cost for pipeline stock if KCEW uses BNSF Railway as the transportation provider? Question 7 (8 points) What is the average safety stock at KCEW (in units of product) if KCEW uses C.H. Robinson as the transportation provider? Question 8 (8 points) What is the annual transportation cost of KCEW if it buys compressors in batch sizes of 1,500 units and uses UPS Supply Chain Solutions as the transportation provider? Question 9 (12 points) Ignoring the annual purchasing cost of the compressors (which is $150x73,000 - $10.95M). what is the total annual cost of KCEW if it buys compressors in batch sizes of 2,500 (i.e., follows a fixed order quantity inventory policy) and uses UPS Supply Chain Solutions as the transportation provider? Questions 6-9 refer to the following data KC Engineering Works (KCEW) sells compressors for air conditioning units to several HVAC dealers in the Midwest region. The annual demand for the compressors is 73,000 units. For the reasons of simplicity assume that the demand is uniform throughout the year. Each compressor unit weighs 10 lbs. KCEW buys the compressors at $150 a piece directly from the manufacturer based in Louisville, KY, in batch sizes that minimize its overall cost. They maintain a safety stock that is 25% of the demand during the lead-time and that the holding cost is 20% of the cost per compressor per year. They have received the following transportation proposals from different providers. Assume 365 days per year. (1 cwt - 100 lbs) Carrier Name Rate (S/cwt) Lead Time (days) Minimum Shipment (cwt) 300+ 50+ 100-200 200-400 BNSF Railway C.H. Robinson UPS Supply Chain Solutions 12 8.50 14.00 12.00 10.00 6.50 8 9 9 400+ Question 6 (8 points) What is KCEW's annual holding cost for pipeline stock if KCEW uses BNSF Railway as the transportation provider? Question 7 (8 points) What is the average safety stock at KCEW (in units of product) if KCEW uses C.H. Robinson as the transportation provider? Question 8 (8 points) What is the annual transportation cost of KCEW if it buys compressors in batch sizes of 1,500 units and uses UPS Supply Chain Solutions as the transportation provider? Question 9 (12 points) Ignoring the annual purchasing cost of the compressors (which is $150x73,000 - $10.95M). what is the total annual cost of KCEW if it buys compressors in batch sizes of 2,500 (i.e., follows a fixed order quantity inventory policy) and uses UPS Supply Chain Solutions as the transportation providerStep by Step Solution
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