using following method please

Assignment 2: CASE 9.2 Baseball Card Emporium Baseball Card Emporium (BBE) of Lewistown, Pennsylvania, is a distributor of baseball cards to sports card retailers. Its market area encompasses most of Pennsylvania, eastern Ohio, and New Jersey. The cards are printed in Neenah, Wisconsin, and currently shipped to Lewistown via motor carrier transportation. Kenny Craig, vice president of logistics, has asked his staff to evaluate using air carrier service to ship the cards. Nick Gingher, director of distribution, has collected the following information: Annual demand: 6,000 cases of cards Case value (price): $96 each Inventory carrying cost (annual): 30% Cost per order to replenish inventory: $75 In-transit inventory carrying cost: 18% Transit time using motor carrier (parcel ground): 4 days Cycle time using motor carrier (parcel ground): 7 days Transit time using air carrier: 1 day Cycle time using air carrier:2 days Motor carrier rate: $1.20 per cwt. (100 lbs.) Air carrier rate: $2.50 per cwt. Unit weight: 50 lbs. per case CASE QUESTIONS 1. What is the economic order quantity for BBE in units? In pounds? 2. What is the total cost (not considering transportation-related costs) of the EOQ? 3. What is the total cost for using motor carrier transportation? 4. What is the total cost for using air carrier transportation? 5. Which alternative should BBE use? Inventory Management and Control: Assignment 2 (BASEBALL CARD EMPORIUM) Tutorial DATA A = Annual demand: 6,000 cases of cards C = Case value (price): $96 each I = Inventory carrying cost (annual): 30% S=Cost per order to replenish inventory: $75 In-transit inventory carrying cost: 18% Transit =me using motor carrier: 4 days Transit =me using air carrier: 1 days Motor carrier rate: $1.20 per cwt. (100 lbs.) Air carrier rate: $2.50 per cwt. Unit weight: 50 lbs. per case 1) EOQ Formula Direct Application Q=V2AS /ic A=6000, S= $75, C=$96, I= 0.30 EOQ= 177 EOQ in Pounds= EOQ x weight of each case 2) TOTAL COST OF EOQ Total Cost = Annual Carrying Cost + Ordering Cost Annual Carrying Cost = 0/2 *C *i Ordering Cost = A/Q * S, here s=$75 3)In transit Inventory Carrying Cost Motor Carrier Transit Time = 4 Days Order Cycle = 6000 cases / 177 cases = 34 orders per year = 365/34 = 11 days per order Fright Rate = $1.2 per 100 lbs In Transit Inv Cost = (Price per case)x(carrying cost)x(number of cases) x(motor carrier transit time)/(number of days/order) (4/11) 4) Motor Carrier Cost Total Cost = In transit Inv Carrying Cost + Total Cost of EOQ (Annual Carrying Cost + Ordering Cost) 5) Air Freight Cost Air Transit Time = 1 Day Freight Rate = $2.50 per cwt (100lbs) i) Air Freight Cost = Freight Rate x CWTx (number of orders per year) = 2.5 * 88.5 * 34 ii) Transit Inv Cost by airline = transit time(1/11)x(number of cases) x price per case x In transit inventory carrying cost Total Cost = i + ii + Total Cost of EOQ (Annual Carrying Cost + Ordering Cost)