This case pertains to a business enterprise that deals with agricultural products. This enterprise currently purchases 100,000 bags of potatoes each year at a price of one hundred dollars per bag (a bag is ten pounds). This enterprise has historically purchased in lots of 3000 bags. Transit time and capacity vary as indicated in the table. The safety inventory required is 30% of lead time demand and the holding cost for a bag is 15% of cost. Carrier Mashburn Rail Sylvia Express Anita Enterprises Smith Trucking Quantity Shipped (cwt) 200+ 100+ 250+ 250+ Quantity shipped Shipping cost Transit time (S/cwt) | (days) 2000+ $2.10 5 1000+ $2. 353 2500+ $1.351 2500+ $1.00 1 3 1) Use the above case to determine the least expensive transportation option if this business continues to purchase 120,000 bags of potatoes each year. 2) Use the above case to determine the least expensive transportation option if this business purchases 240,000 bags of potatoes each year. 3) Use the above case to determine the least expensive transportation option if this business purchases 480,000 bags of potatoes each year. 4) Use the above case to determine the transportation cost of the Anita Enterprises option if this business purchases 240,000 bags of potatoes each year. 5) Use the above case to determine the in-transit inventory cost of the Anita Enterprises option if this business purchases 240,000 bags of potatoes each year. This case pertains to a business enterprise that deals with agricultural products. This enterprise currently purchases 100,000 bags of potatoes each year at a price of one hundred dollars per bag (a bag is ten pounds). This enterprise has historically purchased in lots of 3000 bags. Transit time and capacity vary as indicated in the table. The safety inventory required is 30% of lead time demand and the holding cost for a bag is 15% of cost. Carrier Mashburn Rail Sylvia Express Anita Enterprises Smith Trucking Quantity Shipped (cwt) 200+ 100+ 250+ 250+ Quantity shipped Shipping cost Transit time (S/cwt) | (days) 2000+ $2.10 5 1000+ $2. 353 2500+ $1.351 2500+ $1.00 1 3 1) Use the above case to determine the least expensive transportation option if this business continues to purchase 120,000 bags of potatoes each year. 2) Use the above case to determine the least expensive transportation option if this business purchases 240,000 bags of potatoes each year. 3) Use the above case to determine the least expensive transportation option if this business purchases 480,000 bags of potatoes each year. 4) Use the above case to determine the transportation cost of the Anita Enterprises option if this business purchases 240,000 bags of potatoes each year. 5) Use the above case to determine the in-transit inventory cost of the Anita Enterprises option if this business purchases 240,000 bags of potatoes each year
