Strategy shipments of 190 c h to the warehouse and ship 2ns per day to the Demand 500 Units Working Days Ret Store 500 / 2 Day - 250 Plant to Warehouse Transport Cost- to Material Handling Cost ICC (Shipment Size) X Variable Mtg (Trans & Material Handling) XICC Warehouse Cost Hunt Average may XCoded Co d Order Cost- Sub-Total Warehouse To Retail Transport Cost- [Hint Warehouse to Retalle local delivery $25.00 Unt] Material Handling Cost= Order Cost-Warehouse to Retail= Sub-Total Logistics System Total Cost he total cost for Strategy II is higher than lower than the same as Strategy 1? Explain. m as Michig 1 Year Forecast Demand 500 units Retail Demand- 5 units per day 12 units per day for Strategy II] Product Data: Variable Manufacturing Cost/Unit- $750 Weight Per Unit- 350 pounds Size (Packed)- 40 cubic feet/unit Logistics Costs: A-E A. Transport Costs: Ohio (plant) to Michigan (warehouse). The truck rates are as follows: Shipment Size Rate Less than 3,000 lbs 3,000 to 24,000 lbs $14 per cwt" $10 per cut $7 per cwt Local Delivery Costs $25 per unit Warehouse to Retail 24,001 lbs. and over cwt means cost per hundredweight (100 lbs.) . Inventory Carrying Costs Cosa of the Average Opportunity cost of capital Damage. The & Obscescence Inventory Taxes & Insurance Relocation & Cycle Counting C. Warehousing Costs: Publie warehousing rates were based on the space needed for average inventory your Average Inventory Occuples: 0 to 1,600 cu. ft- 37.50 per cu. ft. of average in 1,601 to 6,300 cu.ft - $4.50 per cu. ft. of average Inv 6,301 cu. ft. & Over- $2.50 per cu. ft. of average in There is a minimum Annual Charge of $1,000 D. Material Handling Costs: Large shipments require overtime labor to unload them and very small shipments underutilize workers. The following rates apply at both the Ohio plant and Michigan publie warehouse: Shipment Size Rate $6.00 per unit loaded & unloaded once $4.00 per unit loaded & unloaded once 0 to 6,000 lbs 6,001 lbs to 11,000 lbs 11,001 lbs to 18,000 lbs 18,001 lbs and Over $2.00 per unit loaded & unloaded once $8.00 per unit loaded & unloaded once E. Order Costs: Replenishment order to plant Retail order to warehouse $125 per order $40 per order Replenishment order costs are more expensive because production set up costs are involved when order sizes change. Strategy Demand Soon Working Day Store Plant to Warehouse Transport Cost 500 12 Day -250 Material Handling Cost ICCE % (Shipment Size) X Variable Mfg. (Trans & Material Handling) XICC% Warehouse Cost- Mint Average Inventory Xu Feet Puched-Cu Feet Chr ] Order Cost- Sub-Total Warehouse To Retail Transport Costa [Mint Warehouse to Retal (le, local delivery) $25.00 Unt] Material Handling Costa Order Cost Warehouse to Retail= Sub-Total Logistics System Total Cost The total cost for Strategy II is higher than | lower than the same as Strategy 1? Explain. Strategy shipments of 190 c h to the warehouse and ship 2ns per day to the Demand 500 Units Working Days Ret Store 500 / 2 Day - 250 Plant to Warehouse Transport Cost- to Material Handling Cost ICC (Shipment Size) X Variable Mtg (Trans & Material Handling) XICC Warehouse Cost Hunt Average may XCoded Co d Order Cost- Sub-Total Warehouse To Retail Transport Cost- [Hint Warehouse to Retalle local delivery $25.00 Unt] Material Handling Cost= Order Cost-Warehouse to Retail= Sub-Total Logistics System Total Cost he total cost for Strategy II is higher than lower than the same as Strategy 1? Explain. m as Michig 1 Year Forecast Demand 500 units Retail Demand- 5 units per day 12 units per day for Strategy II] Product Data: Variable Manufacturing Cost/Unit- $750 Weight Per Unit- 350 pounds Size (Packed)- 40 cubic feet/unit Logistics Costs: A-E A. Transport Costs: Ohio (plant) to Michigan (warehouse). The truck rates are as follows: Shipment Size Rate Less than 3,000 lbs 3,000 to 24,000 lbs $14 per cwt" $10 per cut $7 per cwt Local Delivery Costs $25 per unit Warehouse to Retail 24,001 lbs. and over cwt means cost per hundredweight (100 lbs.) . Inventory Carrying Costs Cosa of the Average Opportunity cost of capital Damage. The & Obscescence Inventory Taxes & Insurance Relocation & Cycle Counting C. Warehousing Costs: Publie warehousing rates were based on the space needed for average inventory your Average Inventory Occuples: 0 to 1,600 cu. ft- 37.50 per cu. ft. of average in 1,601 to 6,300 cu.ft - $4.50 per cu. ft. of average Inv 6,301 cu. ft. & Over- $2.50 per cu. ft. of average in There is a minimum Annual Charge of $1,000 D. Material Handling Costs: Large shipments require overtime labor to unload them and very small shipments underutilize workers. The following rates apply at both the Ohio plant and Michigan publie warehouse: Shipment Size Rate $6.00 per unit loaded & unloaded once $4.00 per unit loaded & unloaded once 0 to 6,000 lbs 6,001 lbs to 11,000 lbs 11,001 lbs to 18,000 lbs 18,001 lbs and Over $2.00 per unit loaded & unloaded once $8.00 per unit loaded & unloaded once E. Order Costs: Replenishment order to plant Retail order to warehouse $125 per order $40 per order Replenishment order costs are more expensive because production set up costs are involved when order sizes change. Strategy Demand Soon Working Day Store Plant to Warehouse Transport Cost 500 12 Day -250 Material Handling Cost ICCE % (Shipment Size) X Variable Mfg. (Trans & Material Handling) XICC% Warehouse Cost- Mint Average Inventory Xu Feet Puched-Cu Feet Chr ] Order Cost- Sub-Total Warehouse To Retail Transport Costa [Mint Warehouse to Retal (le, local delivery) $25.00 Unt] Material Handling Costa Order Cost Warehouse to Retail= Sub-Total Logistics System Total Cost The total cost for Strategy II is higher than | lower than the same as Strategy 1? Explain