Instructions:Answer all the questions and clickSubmit.

M.A company in Hungary manufactures and sell the product "Mini Bike". The company operates at maximum capacity, producing seven days a week, which makes 50 000 units per year. (To make it simple, we assume that a year has 50 weeks.)

The value of a Mini Bike unit leaving production is 100. The cost of capital is estimated to 20%. The cost for holding inventory is 15%, which gives a total inventory carrying cost percentage of 35%. No safety stock is kept in Hungary.

Mini Bike is distributed to a wholesaler in the UK, where it's sold to the end customers. There are two transportation alternatives - by rail or by truck:

• By rail means a dispatch every 14 days. The transportation time is one week. The cost is 4/unit.
• By truck means a dispatch every week. The transportation time is two days. The cost is 6/unit.

In the UK, the wholesaler has a safety stock corresponding to half a week of sales.

Which distribution alternative gives the lowest total cost when considering the transportation cost and inventory carrying cost, in Hungary, during transportation and in the UK?

Ma.What is theInventory holding cost in Hungary, if transportedby train?

Enter the correct numbers in the input fields.

/yearcorrect

35000

Mb.What is theInventory holding cost in Hungary, if transportedby truck?

/yearcorrect

17500

Mc.What is theInventory holding cost during transportation, if transportedby train?

/yearincorrect

210000

Md.What is theInventory holding cost during transportation, if transportedby truck?

/yearincorrect

300000

Me.What is theInventory holding cost in the UK, if transportedby train?

/yearincorrect

469650

Mf.What is theInventory holding cost in the UK, if transportedby truck?

/yearincorrect

17500

Mg.What is thecost for transportation, if transportedby train?

/yearincorrect

469650

Mh.What is thecost for transportation, if transportedby truck?

/yearincorrect

Mi.What is thetotal cost, if transportedby train?

/yearincorrect

469650

Mj.What is thetotal cost, if transportedby truck?

/yearincorrect

469650

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