Question: - Eastern Electric ( EE ) is a major appliance manufacturer with a large plant in the Chicago area. EE purchases 1 2 0 ,

- Eastern Electric (EE) is a major appliance manufacturer with a large plant in the Chicago area. EE purchases 120,000 motors each year from Westview at a price of $ 120 per motor. Each motor averages about 10 pounds in weight, and EE has traditionally purchased lots of 3,000 motors. Westview ships each EE order within a day of receiving it. EE carries a safety inventory equal to 50 percent of the average demand for motors during the delivery lead time. ( h=25% for inventory)- The plant manager in EE received several proposals (see the following table) for transportation and need to decide on the one to accept. Ship time by rail is 5 days (3 days for trucks)- What should the plant manager do?Example 14.21 cwt=100 poundsEvaluate the total cost for Golden Freightways option (50-100 cwt) of Ch 14.

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