3. Total Logistics Analysis with Probabilistic Supply, Single Location. Given the following data, chose a transportation...
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3. Total Logistics Analysis with Probabilistic Supply, Single Location. Given the following data, chose a transportation mode based on Total Logistics Cost: Truck Rail Shipment Price $2000 $2700 Vehicle Capacity 3200 cases 5400 cases Max Transit Time 5 days 10 days Min Transit Time 3 days 6 days Average Transit Time 4 days 8 days 1 month=30.4375 days. The product to be shipped is canned fruit. The value is $20 per case. Demand for the product is 1500 cases per month. Interest rate is 25% per annum for inventory holding. We aim at providing a 95% service level. Note: Include safety stock in your calculations. Assume demand is constant. Assume lead-time is normal, which means that (practically) the range (i.e. max-min) of transit-time values will equal to 60 where is standard deviation of lead time. 3. Total Logistics Analysis with Probabilistic Supply, Single Location. Given the following data, chose a transportation mode based on Total Logistics Cost: Truck Rail Shipment Price $2000 $2700 Vehicle Capacity 3200 cases 5400 cases Max Transit Time 5 days 10 days Min Transit Time 3 days 6 days Average Transit Time 4 days 8 days 1 month=30.4375 days. The product to be shipped is canned fruit. The value is $20 per case. Demand for the product is 1500 cases per month. Interest rate is 25% per annum for inventory holding. We aim at providing a 95% service level. Note: Include safety stock in your calculations. Assume demand is constant. Assume lead-time is normal, which means that (practically) the range (i.e. max-min) of transit-time values will equal to 60 where is standard deviation of lead time.
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