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Tsaltz Inc. of Hamilton, Ontario, is a distributor of starwars themed dog tags to pet store retailers. Its market area spans most of Ontario. The

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Tsaltz Inc. of Hamilton, Ontario, is a distributor of starwars themed dog tags to pet store retailers. Its market area spans most of Ontario. The dog tags are made in Calgary, Alberta, and currently shipped to Ontario via motor carrier transportation. Easton, Director of Logistics, has asked his staff to evaluate using Rail car carner service to ship the dog tags. He obtained the following data for you to make your recommendation which carrier is best for the company. Data: R= Annual rate of demand 5000 cases V= Value of cost of 1 unit of inventory $ 48.00 per case W= Carrying cost per dollar value of inventory per year 15% inventory carrying cost A= Cost of placing an order $ 37.50 cost per order n-transit inventory carry cost 9% Transit time using motor carrier (parcel ground) 2 days Transit time using Rail car carrier 1 days Motor carrier rate $ 0.65 per cut (100 lbs) Rail car carrier rate $1 25 per cut (100 lbs) Unit weight 25 pounds EOQ units 228.00 units EOQ pounts 5700 pounds EOQ cut (hundredweight) 57.00 cut Order cycle 17 day cycle time Total Annual Cost including motor carrier tansit time (excludes freight cost) $1,759.05 What is the total cost for using motor carrier transportation including freight costs? EOQ=SORT(2RANVW) TAC=1/20VW+R/Q(A) Order cycle time=(R/Q)/365 Note: Round to 0 decimal points and no dollar

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