A manager must make a decision on shipping. There are two shippers, A and B. Both offer a two-day rate: A for $538 and B for $529.In addition, A offers a three-day rate of $472 and a nine-day rate of $406, and B offers a four-day rate of $455 and a seven-day rate of$428. Annual holding costs are 39 percent of unit price. Four hundred and ten boxes are to be shipped, and each box has a price of$156. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and finalanswers to 2 decimal places. Omit the "$" sign in your response.)Option2 days3 days9 daysCost$69 69 69$Ship two-day using BShip four-day using BShip seven-day using BShip two-day using AShip three-day using AOption2 days4days7daysBCost$69 69 69

Holding cost per unit per year=410* (0.39*156)Holding cost for 410 units per day=410*…

Answered: A manager must make a decision on…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Your options for shipping $96,970 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 32 days at a cost of $3,370, or (2) truck the parts to Los Angeles and then ship at a total cost of $5,180. The second option will take only 20 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year. If you have a third option and it costs only $4,440 and also takes 20 days, what is your most economical plan? The daily holding cost of Alternative 1 is $ 79.70 . (Enter your response rounded to two decimal places.) The daily cost of faster shipping with Alternative 2 is $ 150.83. (Enter your response rounded to two decimal places.) The daily cost of faster shipping with Alternative 3 is $ (Enter your response rounded to two decimal places.)
Determine which delivery alternative would be most economical for 70 boxes of parts. Each box costs $346 and the annual holding cost is 30% of the cost. Assume 365 days per year. Overnight delivery option costs $300, and eight-day delivery option costs $125 a. The overnight option is at least $70 cheaper than eight-day b. The eight-day option is at least $35 cheaper than overnight c. The eight-day option is at least $70 cheaper than overnight d. The overnight option is at least $35 cheaper than eight-day
1. Padilla Electronics stocks and sells a particular brand of microcomputer. It costs the firm $450 each time it places an order with the manufacturer for the microcomputers. The cost of carrying one microcomputer in inventory for a year is $170. The store manager estimates that total annual demand for the computers will be 1,200 units, with a constant demand rate throughout the year. Orders are received within the minutes after placement from a local warehouse maintained by the manufacturer. The store policy is never to have stock outs of the microcomputers. The store is open for business everyday of the rear except Christmas day. In reference to problem no. 1, determine the number of orders per year
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Your options for shipping $104,800 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 30 days at a cost of $3,370, or (2) truck the parts to Los Angeles and then ship at a total cost of $5,030. The second option will take only 18 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year. If you have a third option and it costs only $4,080 and also takes 18 days, what is your most economical plan? Part 2 The daily holding cost of Alternative 1 is $________. (Enter your response rounded to two decimal places.) Part 3 The daily cost of faster shipping with Alternative 2 is $________. (Enter your response rounded to two decimal places.) Part 4 The daily cost of faster shipping with Alternative 3 is $________. (Enter your response rounded to two decimal places.) Part 5 ▼ Alternative 1? Alternative 2? Alternative 3? is more economical.
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A manufacturing plant procures 100,000 filters per year. Each unit has a fixed order cost is $50. To maintain the inventory in optimal conditions, there is a carrying cost rate of 10% per year. The vendor of filters has offered the following price breaks: for orders of more than 5,000 filters, cost is $4.50/unit; for orders between 1,000 and 5,000 filters, cost is $4.75/unit; orders less than 1,000 filters have a cost of $5.00/unit. Find the economic order quantity. Calculate the average annual cost for the optimal solution.

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