Question: Please help QUESTION 1 Problem 1. The traffic manager of the Monarch Electric Company has just received a new offer from a trucking company for
Please help

QUESTION 1 Problem 1. The traffic manager of the Monarch Electric Company has just received a new offer from a trucking company for the shipment of fractional horsepower motors to the company's field warehouse. Currently, a rate of $3 per cut is used for the delivery size of 40,000 pounds (per delivery). The new proposal is a rate of $2.5 per cwt for the delivery size of 45,000 pounds (per delivery). By doing this, the trucking company can gain some efficiency/benefit in its operation (for example, achieve full truckload or more flexibility in operations), and the trucking company is also willing to pass part of the benefit to Monarch by charging a cheaper rate (reducing from $3 per cwt to $2.5 per cwt). Here is the information provided by Monarch: The annual demand on warehouse is $,000 motors per year, and let us assume constant demand rate on warehouse (in other words, no random demand) Weight of each motor is 200 1b per motor Standard cost of motor in warehouse $300 per motor Order handling costs is $20 per order Warehouse inventory carrying costs as a percentage of average value is 25% per year Problem 1-Question 1: What is the annual ordering cost for current plan. (Only fill in the number) QUESTION 2 Problem 1-Question 2: What is the annual ordering cost for new plan. (Only fill in the number) QUESTION 3 Problem 1-Question 3: What is the annual inventory carrying cost for current plan. (Only fill in the number) QUESTION 4 Problem 1-Question 4: What is the annual inventory carrying cost for new plan. (Only fill in the number) QUESTION 5 Problem 1-Question 5: What is the annual shipping cost for current plan. (Only fill in the number)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
