Question: please answer c,d,e,f,g im confused with that !! (3) EQUILIBRIUM ORDER QUANTITY (EOQ) CALCULATION Baseball Card Emporium (BBE) is a distributor of baseball cards to
please answer c,d,e,f,g im confused with that !!
(3) EQUILIBRIUM ORDER QUANTITY (EOQ) CALCULATION Baseball Card Emporium (BBE) is a distributor of baseball cards to sports card retailers. Its market area encompasses most of Pennsylvania, eastern Ohio, and New Jersey. The cards are printed in Wisconsin, and shipped to BBE via motor carrier transportation, BBE is interested to consider air carrier service to ship the cards. The following are the relevant data: Annual Demand: R-6000 cases of cards Unit weight: 50 lbs. per case Case Value (Price): V - $96 each Cost per order to replenish inventory: A-$75 Inventory carrying cost: W=30% In-transit inventory carrying cost: WA = 18% Transit time using motor carrier: 4 days Transit time using air carrier: 1 day Motor carrier rate: $1.2 per 100 lbs. Air carrier rate: $2.5 per 100 lbs. Please compute the following: a) What is the EOQ. Q for BBE in cases, in lbs. b) What is the total cost for EOQ (The order cost and warehouse inventory cost) c) What is the order cycle time? [This is the number of orders you will place per year, assume one year is 360 days d) What is the inventory carrying cost during motor carrier transportation? (Hint: you need to first determine the ratio of transit time to the order cycle time found in part c. You can assume that inventory during transit is NOT consumed) (10%) What is the inventory carrying cost during air carrier transportation? (5%) What is the motor carrier transportation cost? g) What is the air carrier transportation cost? h) What is the total logistics cost for using motor? (b+d+1) i) What is the total logistics cost for using air? (b+e+g) 1) Which option is cheaper for BBE to choose
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