Question: Question Acompany is examining two alterative choices for moving goods from its plant in Abu Dhabu to its depot in Fujairah. It has been traditionally

Question Acompany is examining two alterative choices for moving goods from its plant in Abu Dhabu to its depot in Fujairah. It has been traditionally shipping good in full doad (FIT) mode so as to save on transportation costs les finance department has been complaining about high inventories in Fuji A full truck load results in a shipment size of 160 units, where less than truckload (LTL) allow the firm to get lots of 40 units each. The avenge demand in depot units per month The cost of product is 500 AED per unit and the firm works with annual inventory carrying cost of 20% Shopping through FTL results is transport cost of ABD/unit, while LTL mode shipment costs 48 AED/unit in transport cost Assuming that there is no holding cost on in-transit inventory, answer the following questions 1 Should the company shift to LTL shipments? 2 Currently, the firm us goung through serious working capital problems and the finance department has informed marketing that wentory will be charged a un teren carrying cost of 30%. How will this affect the transportation mode decision? Question Acompany is examining two alterative choices for moving goods from its plant in Abu Dhabu to its depot in Fujairah. It has been traditionally shipping good in full doad (FIT) mode so as to save on transportation costs les finance department has been complaining about high inventories in Fuji A full truck load results in a shipment size of 160 units, where less than truckload (LTL) allow the firm to get lots of 40 units each. The avenge demand in depot units per month The cost of product is 500 AED per unit and the firm works with annual inventory carrying cost of 20% Shopping through FTL results is transport cost of ABD/unit, while LTL mode shipment costs 48 AED/unit in transport cost Assuming that there is no holding cost on in-transit inventory, answer the following questions 1 Should the company shift to LTL shipments? 2 Currently, the firm us goung through serious working capital problems and the finance department has informed marketing that wentory will be charged a un teren carrying cost of 30%. How will this affect the transportation mode decision

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