Ellen's staff proposed two alternative distribution strategies for the stores in Illinois: The company began in Illinois and its stores in the state enjoyed strong sales. Each Illinois store sold, on average, 50,000 units a year of product from each supplier (for annual sales of 400,000 units per store). Holding costs for Michael’s were $1 per unit per year. Ellen asked her staff to propose different distribution alternatives for both Illinois and Arizona. Distribution Alternatives for Illinois Ellen’s staff proposed two alternative distribution strategies for the stores in Illinois: Use direct shipping with even larger trucks that had a capacity of 40,000 units. These trucks charged only $1,150 per delivery to an Illinois store. Using larger trucks would lower transportation costs but increase inventories because of the larger batch sizes. What is the Total savings and total cost for using larger trucks? Please do fast .. ASAP fast
Ellen's staff proposed two alternative distribution strategies for the stores in Illinois: The company began in Illinois and its stores in the state enjoyed strong sales. Each Illinois store sold, on average, 50,000 units a year of product from each supplier (for annual sales of 400,000 units per store). Holding costs for Michael’s were $1 per unit per year. Ellen asked her staff to propose different distribution alternatives for both Illinois and Arizona. Distribution Alternatives for Illinois Ellen’s staff proposed two alternative distribution strategies for the stores in Illinois: Use direct shipping with even larger trucks that had a capacity of 40,000 units. These trucks charged only $1,150 per delivery to an Illinois store. Using larger trucks would lower transportation costs but increase inventories because of the larger batch sizes. What is the Total savings and total cost for using larger trucks? Please do fast .. ASAP fast
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 3.8A
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Ellen's staff proposed two alternative distribution strategies for the stores in Illinois:
The company began in Illinois and its stores in the state enjoyed strong sales. Each Illinois store sold, on average, 50,000 units a year of product from each supplier (for annual sales of 400,000 units per store). Holding costs for Michael’s were $1 per unit per year. Ellen asked her staff to propose different distribution alternatives for both Illinois and Arizona. Distribution Alternatives for Illinois Ellen’s staff proposed two alternative distribution strategies for the stores in Illinois: Use direct shipping with even larger trucks that had a capacity of 40,000 units. These trucks charged only $1,150 per delivery to an Illinois store. Using larger trucks would lower transportation costs but increase inventories because of the larger batch sizes.
What is the Total savings and total cost for using larger trucks?
Please do fast .. ASAP fast
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