Question: please solve part C and D only 1. A retail has sixteen stores in a region supplied from elght supply sources. Trucks have a capacity
please solve part C and D only
1. A retail has sixteen stores in a region supplied from elght supply sources. Trucks have a capacity of 20,000 units and cost $1,000 per load plus $200 per delivery. Thus, a truck making two deliveries charges $1,400. The cost of holding one unit in Inventory at retail store for a year is $1.00. The vice president of supply chain is considering whether to use direct shipping from suppliers to retail stores or setting up milk runs (2 and 4 stores milk run) from suppliers to retail stores. A. What network do you recommend if annual sales for each product at each retail store are 600,000? What is the total transportation and inventory cost of this strategy? B. What network do you recommend if annual sales for each product at each retail store are 300,000? What is the total transportation and inventory cost of this strategy? C. What network do you recommend if annual sales for each product at each retail store are 100,000? What is the total transportation and inventory cost of this strategy? D. Use Solver to determine the annual quantity level the VP should change their network from a 4 store milk run and to a 2 store milk run network. (At what quantity doe the total transportation and inventory costs of the two network strategies equal?)
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
