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Question 2 : Ford and GM carry spare parts for their dealers at a third - party warehouse in Michigan's Upper Peninsula. Demand for Ford
Question : Ford and GM carry spare parts for their dealers at a thirdparty warehouse in Michigan's Upper Peninsula. Demand for Ford spare parts is units per year, whereas demand for GM parts is per year. Each spare part's price is $ and both companies have annual holding costs of percent of this price. Currently, each company uses a separate truck to ship these parts. Each truck has a fixed cost of $a What is the optimal order size for Ford and for GM What is the total cost the annual ordering cost and the annual holding cost only for each company?b A thirdparty logistics provider has offered to combine shipments for each of the two companies on a single truck. This will increase the cost of each truck to $ Should Ford and GM accept the third party's proposal considering the total annual cost of ordering and holding only
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