Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The PDQ Manufacturing Company has an assembly plant in Toledo and its parts plant in Chicago. Multiple Products (Laptops, headphones, Microphones) are transported from Chicago

The PDQ Manufacturing Company has an assembly plant in Toledo and its parts plant in Chicago. Multiple Products (Laptops, headphones, Microphones) are transported from Chicago to Toledo. Each shipment costs $1750, however shipments can be combined with cost to follow. The Toledo plant requires and operates 7 days per week and 48 weeks a year. Headphones have a unit costs of $150 and has a specific ordering cost of $100 to ship and have a demand of 20,500 units per year, microphones have a unit costs of $50 and has a specific ordering cost of $75 to ship and have a demand of 5,500 units per year, and laptops have a unit costs of $1500 and has a specific ordering cost of $500 to ship and have a demand of 30,500 units per year. PDQ Manufacturing Company incurs a holding cost of 15 percent per year.

What is the combines shipping cost?

what is the optimal order frequency?

what is the annual ordering cost?

what is the annual holding cost?

what is the total cost?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Responsible Management Global Sustainability Responsibility and Ethics

Authors: Oliver Laasch

1st Edition

9781285981321, 1285080262, 1285981324, 978-1285080260

More Books

Students also viewed these General Management questions

Question

Perform the indicated operations. (3x + 4x 7) (2x - 8x + 3x) -

Answered: 1 week ago

Question

Describe what is meant by the term "goodwill."

Answered: 1 week ago

Question

Practice: Describe why theories can be supported but not proved.

Answered: 1 week ago