The FLEX Corporation has two plants located in Spokane Washington and Houston, Texas that manufacture components A and B respectively for use at an assembly plant in Syracuse, NY.

Transit time from Spokane and Houston to the plant in Syracuse is 9 days. Demand at the Syracuse plant is 250 units of component A and 125 units of component B each day.

The plants ship in full truckloads, each truck has a maximum capacity of 1750 components (both components are of similar size). Holding cost for the assembly plant and in-transit inventory is $1/unit/ day and freight cost for a 

truckload is $ 1500 from either component plant to Syracuse.

 

Calculate the average daily transportation costs, the daily holding costs from transportation and the average daily cycle stock holding costs Calculate the average daily transportation costs, the daily holding costs from 

transportation, and the average daily cycle stock holding costs