Question
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?
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