Question: provide answer / calculations using formulas: A refiner in city Q serves four customers near city W and maintains consignment inventory ( owned by the
provide answercalculations using formulas: A refiner in city Q serves four customers near city W and maintains consignment inventory owned by the refiner at each location. Currently, the refiner uses TL truckload transportation to deliver separately to each customer. Each truck costs $X plus $X per stop. The refiner is considering aggregating deliveries to city W on a single truck. The demand of the first customer is tons a year, the demand of the second customer is tons per year, and the demand of the third and fourth customers is tons per year. The product cost is $ per ton, and it uses a holding cost of X The truck capacity is tons.
a What is the optimal delivery policy to each customer if the refiner ships separately to each of them? What is the annual total inventoryrelated cost?
b What is the optimal delivery policy to each customer if the refiner aggregates shipments to each of the four customers on every truck that goes to city W What is the annual total inventoryrelated cost?
c What is the annual total inventoryrelated cost if the refiner ships a full truckload each time a customer is running out of stock? How many days of inventory are carried at each customer under this policy?
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