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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
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. Camer Quantity h ) 2000+ Mashhur Rail Sylvia Express Anita Enterprise Smith Trucking a ntity Shipped wt) 2 00- 100 250 250+ Shiping cost Transit time Sw) 210 52235 5135 SIDO 2500+ 2500 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. 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 (bags) (S/cwt) (days) 2000+ S2.10 1000+ S2.35 2500+ $1.35 2500- $1.00 1) Use the above dase 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
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