Question
You have one supplier shipping a material to three facilities. Each has warehousing capabilities. Determine optimal size and frequency of shipments to each location. Show
You have one supplier shipping a material to three facilities. Each has warehousing capabilities. Determine optimal size and frequency of shipments to each location. Show results and summary page.
| Inputs: | Cost of Capitol | 12% | Annual as % of Material Cost | ||
| Material Cost | $2.00 | per lb | |||
| Facility | Location | Warehousing Costs (per lb) | 5000 lb LTL Freight Cost (per lb from Chicago) | Full Truck Freight Cost (per lb from Chicago) | Annual Volume (lb) |
| Supplier | Chicago | $0.05 | N/A | N/A | |
| Plant 1 | St Louis | $0.05 | $0.50 | $0.35 | 500000 |
| Plant 2 | Detroit | $0.03 | $0.45 | $0.40 | 650000 |
| Plant 3 | Milwaukee | $0.04 | $0.30 | $0.26 | 400000 |
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The Principles And Practice Of Auditing
Authors: George Puttick, Sandra Van Esch
8th Edition
0702156914, 978-0702156915
