TL LTL (to 1 warehouse) LTL (to 5 wareshouses) D, Demand C, unit cost H, holding cost per unit A company is changing its distribution network. Rather than shipping from their factory to only one warehouse, it will begin shipping to 5 warehouses. They want to determine what is the point where they should be switching from truckload, TL, to Less Than Truckload, LTL. Assume the annual demand will be even divided to all 5 warehouses Set up cost Capacity per TL Q* A truckload costs $1250 and holds up to 2000 units An LTL costs $5.50 per unit Q Using either method, it cost $350 to place an order. D/Q Q/2 Each unit cost $120 amd the annual holding cost is 20%. If the demand is 75000 units per year, how will their transportation costs change? How much will it cost to deliver to all 5 warehouses assuming the cost to ship to each is the same? Mat cost Ord cost Hold cost Total Difference $ TL LTL (to 1 warehouse) LTL (to 5 wareshouses) D, Demand C, unit cost H, holding cost per unit A company is changing its distribution network. Rather than shipping from their factory to only one warehouse, it will begin shipping to 5 warehouses. They want to determine what is the point where they should be switching from truckload, TL, to Less Than Truckload, LTL. Assume the annual demand will be even divided to all 5 warehouses Set up cost Capacity per TL Q* A truckload costs $1250 and holds up to 2000 units An LTL costs $5.50 per unit Q Using either method, it cost $350 to place an order. D/Q Q/2 Each unit cost $120 amd the annual holding cost is 20%. If the demand is 75000 units per year, how will their transportation costs change? How much will it cost to deliver to all 5 warehouses assuming the cost to ship to each is the same? Mat cost Ord cost Hold cost Total Difference $