When Vidalia onions are ready, the entire 13 county (plus parts of seven other counties) area in
Question:
When Vidalia onions are ready, the entire 13 county (plus parts of seven other counties) area in Georgia where they are grown is devoted to the harvest, packaging and shipping of this delicacy. The Onion Shack currently purchases 120,000 bags of onions each year at a price of $100+22 per bag (a bag is ten pounds). Onion Shack has historically purchased in lots of 3000 bags. Transit time and capacity vary as indicated in the table. The safety inventory that Onion Shack requires is 30% of lead time demand and the holding cost for a bag is 15% of cost. (In the table one cwt equals 100 pounds)
Carrier | Quantity Shipped (cwt) | Quantity shipped (bags) | Shipping cost ($/cwt) | Transit time (days) |
Mashburn Rail | 200+ | 2000+ | $2.10 | 5 |
Sylvia Express | 100+ | 1000+ | $2.35 | 3 |
Anita Enterprises | 250+ | 2500+ | $1.35 | 3 |
Smith Trucking | 250+ | 2500+ | $1.00 | 3 |
Which carrier should be selected?
Please show me how to solve in Excel.