Question: Problem 2 . (Chapter 7: Transport Decisions). The Wagner Company supplies electric motors to Electronic Distributors, Inc. on a delivered-price basis. Wagner has the responsibility

Problem 2. (Chapter 7: Transport Decisions). The Wagner Company supplies electric motors to Electronic Distributors, Inc. on a delivered-price basis. Wagner has the responsibility for providing transportation. The traffic manager has three transportation service choices for delivery-rail, piggyback, and truck. He has compiled the following information:

----------------------------------------------------------------------

Transport Transit Rate, Shipment

Mode Time, Days $/unit Size, Units

----------------------------------------------------------------------

Rail 16 24.00 10,000

Piggyback 10 40.00 7,000

Truck 6 80.00 5,000

Electronic Distributors purchases 50,000 units per year at a delivered contract price of $500 per unit. Inventory-carrying cost for both companies is 25 percent per year. Which mode of transportation should Wagner select?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

BASIC ENGINEERING CIRCUIT ANALYSIS Tenth Edition J . DAVID IRWIN - R , MARK NELIMS Answers

2. (Chapter 7: Transport Decisions). The Wagner Company supplies electric motors to Electronic Distributors, Inc. on a delivered-price basis. Wagner has the responsibility for providing transp

Problem 2. (Chapter 7: Transport Decisions). The Wagner Company supplies electric motors to Electronic Distributors, Inc. on a delivered-price basis. Wagner has the responsibility for providing...

Please show work Problem 2. (Chapter 7: Transport Decisions). The Wagner Company supplies electric motors to Electronic Distributors, Inc. on a delivered-price basis. Wagner has the responsibility...

Problem 2. (Chapter 7: Traniport Decisions). The Wagner Company supplies electric motors to Electronic Distrbutors, Inc, on a delivered-price basis. Wagner has the responsibility for providing...

Problem 2 . ( Chapter 7 : Transport Decisions ) . The Wagner Company supplies electric motors to Electronic Distributors, Inc. on a delivered - price basis. Wagner has the responsibility for...

The Wagner Company supplies electric motors to Electronic Distributors, Inc. on a deliveredprice basis. Wagner has the responsibility for providing transportation. The logistics manager has three...

The Wagner Company supplies electric motors to Electronic Distributors, Inc. on a delivered-price basis. Wagner has the responsibility for providing transportation. The traffic manager has three...

The Wagner Company supplies electric motors to electronic distributors, Inc. on a delivered-price basis. Wagner has the responsibility for providing transportation. The traffic manager has three...

If IBM issues 62-day commercial paper with an annual yield of 2.45% and U.S.Treasury Bills yield 1.92% for the same period, then the price of IBM's commercialpaper as a percentage of its face amount...

Peter Weber is an accountant. Peter is 47 years old and is married to Claire who is 45 years old and blind. She has Net Income For Tax Purposes in 2020 of $9,000, all of which is interest on...

Question Content Area The amount of the exemption equivalent is the same for both transfers by gift and transfers by death. True or False

When older adults have difficulty with transportation and communication, or may be reluctant to request needed assistance to which they are entitled, they may be in need of: Group of answer choices...