A company would like to transport 2-cylinder engines to a manufacturer. Based on the given parameters,...

 

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A company would like to transport 2-cylinder engines to a manufacturer. Based on the given parameters, select the best alternative in terms of the total cost. Parameters • Demand = 10,000 engine/year (assume that 1 year = 365 days) • Cost = $500/engine • Annual Interest Rate = 25% / year • Weight = 200 lbs/engine Safety stock = 75% of ddit (demand during lead time) • Lot size (Q) = 100 Carrier Alternatives Omtrak JP Bunt Golden Jet Weight Range (cwt) Shipping Cost ($/cwt) 100+ 17 100+ 26 100+ 34 • Calculate the cost per each transportation mode alternative • Show your work for cost calculation • Compare the transportation costs of the alternatives • Must use the following table format Alternatives Shipping Lead Lot Cost ($/cwt) Time Size Omtrak JP Bunt Golden Jet Transportation Cost Lead Time (L) 45 days 8 days 2 days Inventory Holding Cost Total Cost • Select the best alternative in terms of transportation cost Report Submission Guidelines • Write down your work on paper (you may use Microsoft Word) • Scan the paper and convert it to a PDF file (you may convert from Word to PDF Submit the PDF file to Canvas A company would like to transport 2-cylinder engines to a manufacturer. Based on the given parameters, select the best alternative in terms of the total cost. Parameters • Demand = 10,000 engine/year (assume that 1 year = 365 days) • Cost = $500/engine • Annual Interest Rate = 25% / year • Weight = 200 lbs/engine Safety stock = 75% of ddit (demand during lead time) • Lot size (Q) = 100 Carrier Alternatives Omtrak JP Bunt Golden Jet Weight Range (cwt) Shipping Cost ($/cwt) 100+ 17 100+ 26 100+ 34 • Calculate the cost per each transportation mode alternative • Show your work for cost calculation • Compare the transportation costs of the alternatives • Must use the following table format Alternatives Shipping Lead Lot Cost ($/cwt) Time Size Omtrak JP Bunt Golden Jet Transportation Cost Lead Time (L) 45 days 8 days 2 days Inventory Holding Cost Total Cost • Select the best alternative in terms of transportation cost Report Submission Guidelines • Write down your work on paper (you may use Microsoft Word) • Scan the paper and convert it to a PDF file (you may convert from Word to PDF Submit the PDF file to Canvas

Answer rating: 100% (QA)

SOLUTION To determine the best transportation alternative in terms of total cost we need to calculate the transportation cost inventory holding cost a... View the full answer