Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ZAMECH purchases subassemblies A and B from two suppliers located in Syracuse and New Orleans, respectively, for its assembly plants in Seattle and San
ZAMECH purchases subassemblies A and B from two suppliers located in Syracuse and New Orleans, respectively, for its assembly plants in Seattle and San Jose, which operate 360 days a year. The assembly plant in Seattle makes 50 products per day, whereas the plant in San Jose makes 75 products per day. Both types of products are assembled in Seattle and San Jose require one unit of each of the subassemblies A and B. Trucks used have a capacity of 3,000 units and cost $4,000 per truckload shipped. The inventory holding cost per subassembly per day is $0.90, and the transit time associated with each route is 5 days. a. [15 pts] Currently, direct shipments are made in full truckloads from the supplier locations to the assembly plants. Provide the total annual logistics (transportation, in- transit inventory, and on-site inventory) cost associated with the current system configuration. b. [15 pts] What would the total annual logistics (transportation, in-transit inventory, and on-site inventory) cost be, if optimal shipment quantities were to be used for making direct deliveries? e. [15 pts] What would the total annual logistics (transportation, in-transit inventory, and on-site inventory) cost be, if optimal shipment quantities for a milk-run delivery scheme is to be used? In other words, a truck picks up subassemblies first from Syracuse then from New Orleans and drops off first at San Jose and then at Seattle. Assume that it takes exactly 3 days to drive from Syracuse to New Orleans, exactly 3 days from New Orleans to San Jose and exactly 3 days from calculating the in-transit costs associated with this system. San Jose to Seattle in
Step by Step Solution
★★★★★
3.38 Rating (167 Votes )
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Document Format ( 2 attachments)
636513046b312_239915.pdf
180 KBs PDF File
636513046b312_239915.docx
120 KBs Word File
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started