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please use pounds instead of units Given the following information, you need to decide between the transportation modes based on the EOQ model. R =
please use pounds instead of units
Given the following information, you need to decide between the transportation modes based on the EOQ model. R = 7,200 units (annual demand) A = $400 (cost of one order or setup) W-25% (cost of carrying inventory in a warehouse) V = $50 (value per unit) Q-480 units (this would remain the same) Now consider that company is choosing between two transportation modes (rail, motor, sea, or air) and that the following information is available: Rail: 8 days in transit time; $3 per hundred pounds Motor: 6 days transit time; $4 per hundred pounds Sea: 30 days in transit time: $0.25 per hundred pounds Air: 1 day transit time: $8 per hundred poundsStep by Step Solution
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