Use the data in the table from the previous problem to answer this question. A transportation manager must ship orders of materials weighing three pounds each to destinations in each of the seven zones listed in the table. The daily inventory holding rate is $7.50 per day for all orders. The manager has decided to use next day air service for all shipments. Would you agree that this is the right course of action? Why, or why not?
Answer to relevant QuestionsUsing the rate schedule in the table in problem 2, determine whether or not economies of scale (weight) and economies of distance exist. Hint: assume that distance from each zone to the next farthest zone is approximately ...Using the rates in problem 8, suppose you have eight shipments of 900 pounds each that the carrier will consolidate into one shipment, for an additional charge of $200 (total). Should you agree to this? Your firm is considering reducing staff and your forecasting department has been mentioned as a prime candidate for this treatment. Outline a brief memo to defend the value of your department’s services to the firm. How ...You have become concerned about the amount of copier paper used in your office after repeatedly running out of supplies. Your assistant keeps track of the number of reams (packages of 500 sheets) for 24 weeks: a. Compare the ...Repeat problem 1 using (=.4 and β =.8. Which model gives a better approximation of the demand pattern for periods 1 through 6?
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