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To determine the economic impact of the proposed contract with Green Fork Farm, we need to calculate the cost per pallet position per year. This
To determine the economic impact of the proposed contract with Green Fork Farm, we need to calculate the cost per pallet position per year. This will allow us to compare the cost of this contract to other potential contracts and make an informed decision about whether or not to accept the contract.
The cost per pallet position per year can be calculated by dividing the cost of the contract by the number of pallet positions. The cost of the contract has not been disclosed, so we do not know the exact cost per pallet position. However, we do know that the contract requires us to turn the egg inventory an average of twentyfive times per year. This means that we will be storing and retrieving eggs an average of twentyfive times per year.
The cost of storing and retrieving eggs will depend on the size of the egg inventory and the cost of labor. Assuming that the cost of storing and retrieving eggs is
x
The number of pallet positions in the DC is but we do not know how many of these are actually available for the Green Fork Farm contract. If only a portion of the pallet positions are available, the cost per pallet position per year may be higher than
per pallet position per year is for storage and retrieval. If the majority of the cost is for labor, then the cost per pallet position per year may be higher than $
Final answer: In conclusion, the economic impact of the proposed contract with Green Fork Farm is likely to be positive, but we need to consider other potential contracts before making a decision.
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