Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please solve correctly and understandably. The Tesla Model 3 is an electric four-door fastback sedan developed by Tesla. It's the world's best-selling electric car in
Please solve correctly and understandably.
The Tesla Model 3 is an electric four-door fastback sedan developed by Tesla. It's the world's best-selling electric car in history, with more than 500,000 units delivered. Tesla is deciding on a policy for the use of TL or LTL transportation for inbound shipping. LTL shipping costs $1 per unit. TL shipping costs $1050 per truck plus $100 per pickup. Thus, a truck used to pick up from three suppliers costs 1050 + (3 x 100) = $1,350. A truck can carry up to 15 units. Tesla incurs a fixed cost of $150 for each order placed with a supplier. Thus, an order with three distinct suppliers incurs an ordering cost of $450. Each unit costs $50, and Tesla uses a holding cost of 30 percent. Assume that products from each supplier have an annual demand of 350 units. Tesla has thousands of suppliers and the company must decide on the number of suppliers to group per truck if using TL. a. What is the optimal order size that Tesla is decided and the annual cost of LTL shipping is used? What is the time between orders? b. What is the optimal order size and annual cost if TL shipping is used with a separate truck for each supplier? What is the time between orders? c. What is the optimal number of suppliers that should be grouped together? What are the optimal order size and the annual cost per product in this case? What is the time between ordersStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started