The traffic manager of XYZ electric has just received a rate reduction offer from a trucking...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The traffic manager of XYZ electric has just received a rate reduction offer from a trucking company for the shipment of fractional horse power motors to the company's field warehouse. The proposal is a rate of $3 per hundred weight (cwt) if a minimum of 40,000 pounds is moved in each shipment. Currently shipments of about 20,000 pounds or more are moved at a rate of $5 per cwt. If shipment size falls below 20,000 pounds, a rate of $ 9 per cwt applies. Should the company implement new rate To help the traffic manager make a decision the following additional information has been gathered. Operational descriptive Annual demand on warehouse Warehouse replenishment order size (current) Weight of each motor, crated Standard cost of motors in warehouse Stock replenishment order handling costs Inventory carrying costs as a percentage of average value of inventory on hand for a year Handling cost at warehouse Warehouse space Figures 5,000 motors per year 114 per order 175 pounds $200 per motor $15 per order 25 percent of the cost of motors $0.30 per cwt unlimited The traffic manager of XYZ electric has just received a rate reduction offer from a trucking company for the shipment of fractional horse power motors to the company's field warehouse. The proposal is a rate of $3 per hundred weight (cwt) if a minimum of 40,000 pounds is moved in each shipment. Currently shipments of about 20,000 pounds or more are moved at a rate of $5 per cwt. If shipment size falls below 20,000 pounds, a rate of $ 9 per cwt applies. Should the company implement new rate To help the traffic manager make a decision the following additional information has been gathered. Operational descriptive Annual demand on warehouse Warehouse replenishment order size (current) Weight of each motor, crated Standard cost of motors in warehouse Stock replenishment order handling costs Inventory carrying costs as a percentage of average value of inventory on hand for a year Handling cost at warehouse Warehouse space Figures 5,000 motors per year 114 per order 175 pounds $200 per motor $15 per order 25 percent of the cost of motors $0.30 per cwt unlimited
Expert Answer:
Answer rating: 100% (QA)
Circumstance 1 Rate for shipment weight 40000 3 per cwt New proposal Circumstance 2 Rate for shipmen... View the full answer
Related Book For
Project Management A Systems Approach to Planning Scheduling and Controlling
ISBN: 978-0470278703
10th Edition
Authors: Harold Kerzner
Posted Date:
Students also viewed these general management questions
-
Equity: P10,400,000 20thebe ordinary shares with a market price of P5.20 Reserves: P2,200,000 Preference shares: P1,050,000 8% P1 preference shares with a market price of 70thebe Loan stock: P800,000...
-
The Fred Meyer store in Portland has just received a large shipment of fitted baseball caps from Gradient Sporting Goods. In previous orders, a number of the hat sizes have been mislabeled. Because...
-
The traffic manager of the Monarch Electric Company has just received a rate-reduction offer from a trucking company for the shipment of fractional horsepower motors to the company's field warehouse....
-
Considering all of the below, recommend and justify a price for this deal. This is not easy to do. Put yourself in the shoes of the Robertson managers. Who wants it more? The buyer-Monmouth? The...
-
The Giant Development Company undertakes a massive real estate venture to sell 9,000 one-acre unimproved lots in Utah. The company advertises the project nationally. Arrington, a resident of New...
-
The poorest countries in the world have a per capita income of about $600 today. We can reasonably assume that it is nearly impossible to live on an income below half this level (below $300). Per...
-
The four alternatives described below are being evaluated: The Incremental IRRs are: a. If the alternatives are independent, which one(s) should be selected if \(M A R R=15.5\) percent/year? b. If...
-
Lower-of-Cost-or-Market'Valuation Account Presented below is information related to Knight Enterprises. (a) From the information, prepare (as far as the data permit) monthly income statements in...
-
How do taxes and regulation impact the equity of budgeting decisions and as a public manager/administrator/analyst, how would one balance the need for taxation and the mandate to provide equitable...
-
A simply supported pretensioned beam has a span of 75 ft (22.9 m) and the cross section shown in Figure P3.1. It is subjected to a uniform gravitational live-load intensity W =1,200 plf (17.5 kN/m)...
-
Why is it essential to first be truthful (impeccable) with yourself prior to being truthful with others?
-
We are given the language, L = {0'1'2 | i, j, k 0, k #1 or i = j}. (a) 5 points Without using the pumping lemma, argue that L is not regular. (b) 5 points Show that the pumping lemma for regular...
-
4. Synthetic Bonds, Arbitrage, and Pricing 15 points Consider the following information about five default-free bond positions. Assume that the pricing of these five positions admits no arbitrage...
-
In 2012 Bard, Inc. (BCR) had sales per share of $36.21, net profit margin of 19.1%, and paid $1.39 dividend per share. The Dividend Payout Ratio and Retention Rate are: a.21% and 86% b.32% and 74%...
-
A 6.0-kg block is released from rest 80 m above the ground. When it has fallen 60 m, what is its kinetic energy ?
-
Interest is a concept familiar to most people: every credit card in existence has a term called annual percentage rate (APR), which is an interest rate. Suppose you charged $1,000 to a credit card...
-
4. A runner accelerates to a velocity of 5.36 m/s due west in 3.00 s. His constant acceleration is 0.640 m/s, also directed due west. What was his velocity when he began accelerating? How far does...
-
Consider the sections of two circuits illustrated above. Select True or False for all statements.After connecting a and b to a battery, the voltage across R1 always equals the voltage across R2.Rcd...
-
One of the most difficult problems facing management is that of how to minimize the transition time between changeover from a purely traditional organizational form to a project organizational form....
-
Will project management work in all companies? If not, identify those companies in which project management may not be applicable and defend your answers.
-
The internal functioning of an organization must consider: The demands imposed on the organization by task complexity Available technology The external environment The needs of the organizational...
-
A single-tank liquid-level system with inflow rate \(q_{i}\) as its input and liquid level \(h\) as its output is modeled as \(R A \dot{h}+g h=R q_{i}(t), h(0)=0\), where \(R, A, g=\) const. If the...
-
The mechanical system in Figure 8.37, where all parameter values are in consistent physical units, is subject to initial conditions \(x_{1}(0)=1, x_{2}(0)=1, \dot{x}_{1}(0)=-1, \dot{x}_{2}(0)=1\)....
-
A dynamic system is modeled as \[4 \ddot{x}+4 \dot{x}+5 x=10 \sin \left(\frac{1}{2} t ight), \quad x(0)=\frac{1}{2}, \quad \dot{x}(0)=0\] Plot the response \(x(t)\) for \(0 \leq t \leq 20\) by a....
Study smarter with the SolutionInn App