Question: URGENT ANSWER- PLEASE GIVE YOUR ANSWER WITHIN 1/2 HOURS QUESTION 2 (10 marks) Nina Fans of Penang, is a distributor of industrial fans used in

URGENT ANSWER- PLEASE GIVE YOUR ANSWER WITHIN 1/2 HOURS

QUESTION 2 (10 marks) Nina Fans of Penang, is a distributor of industrial fans used in plants, warehouses and other industrial facilities. Its market area encompasses most of Penang, East Malaysia and Johor Bharu. The fans are manufactured in Ceruk To Kun, Penang and currently shipped to Johor Bharu via rail transportation. Kamal, vice president of logistics, has asked his staff to evaluate using motor carrier service to ship the fans. . . Nik Ibrahim, director of distribution, has collected the following information: Annual demand : 36,000 fans Fan value (price) : $4000 each Inventory carrying cost (annual) : 25% Cost per order to replenish inventory : $200 In-transit inventory carrying cots : 15% Order cycle time using rail : 4 days Order cycle time using motor carrier : 2 days Rail rate : $1.00 per cwt (100 lbs) Motor carrier rate : $1.25 per cwt Unit weight : 250 lbs per fan . . . Which transportation alternative should Nina Fans use? Explain your decision. QUESTION 2 (10 marks) Nina Fans of Penang, is a distributor of industrial fans used in plants, warehouses and other industrial facilities. Its market area encompasses most of Penang, East Malaysia and Johor Bharu. The fans are manufactured in Ceruk To Kun, Penang and currently shipped to Johor Bharu via rail transportation. Kamal, vice president of logistics, has asked his staff to evaluate using motor carrier service to ship the fans. . . Nik Ibrahim, director of distribution, has collected the following information: Annual demand : 36,000 fans Fan value (price) : $4000 each Inventory carrying cost (annual) : 25% Cost per order to replenish inventory : $200 In-transit inventory carrying cots : 15% Order cycle time using rail : 4 days Order cycle time using motor carrier : 2 days Rail rate : $1.00 per cwt (100 lbs) Motor carrier rate : $1.25 per cwt Unit weight : 250 lbs per fan . . . Which transportation alternative should Nina Fans use? Explain your decision

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