Question: ZAMECH purchases sub - assemblies A and B from two suppliers located in Syracuse and New Orleans respectively for its assembly plants in Seattle and
ZAMECH purchases subassemblies A and B from two suppliers located in Syracuse and New Orleans respectively for its assembly plants in Seattle and San Jose, both of which operate days a year. Assembly plant in Seattle makes products per day, whereas the plant in San Jose products per day. The product assembled in Seattle requires two units of subassembly A and one unit of subassembly B whereas the product assembled in San Jose requires one unit of subassembly A and two units of subassembly BTrucks have a capacity of units of either subassembly and cost $ per shipment. Onsite and intransit inventory holding cost per subassembly per day is $ What are the annual total logistics including transportation, intransit inventory, and on site inventory cost if the optimal shipment quantity for a milkrun delivery scheme is to be used? Under such a scheme, a truck would pick the subassemblies up first from Syracuse then from New Orleans and drop them off in San Jose first and in Seattle next. Assume that it takes exactly days to drive from Syracuse to New Orleans, exactly days from New Orleans to San Jose and exactly days from San Jose to Seattle.
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