The Maxim Packing Company is considering a freight consolidation program for serving the Kansas market. The program
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Hays ........................ 200 cases
Manhattan ................. 350
Salina ....................... 325
Great Bend ............... 125
The average case weighs 40 pounds. Orders could be shipped in the biweekly period that they are received, held, and shipped after two biweekly order periods, or held and shipped after three biweekly order periods. The potential loss of sales has been estimated at $1.05 per case for each additional biweekly period that orders are held. Transportation rates to Kansas are given in Table 7-7.
Should the program be implemented? If so, how long should orders be held before shipment?
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Related Book For
Business Logistics Supply Chain Management
ISBN: 978-0130661845
5th edition
Authors: Ronald H. Ballou
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