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Unformatted text preview: Line fill rate= number of order lines delivered complete/total order lines Order fill rate= total complete orders delivered/total orders Chapter 10 Make or buy anaylsis Make= FC + VC Buy = FC + VC Break even point = fixed costs/ (sellingprice- variable costs) Chapter 11 Total cost = In-transit holding cost + Freight cost In-transit holding = days in transit/365 x value x holding cost A firm has orders of 12,000 lbs each of goods for three customers. It is $15.75 per hundredweight (cwt) to ship direct, or $10.50 cwt for shipments of greater than 30,000 lbs with a $300 fee for each stop. Cost of individual shipments: $15.75 x (12,000/100) = $15.75 x 120cwt = $1,890 total for all three shipments = 3 x $1, 890 = $5,670 Consolidated shipments: $10.50 x (36,000/100) = $10.50 x 360cwt = $3,780 including stop charge = 3 x $300 + $3780 = $4,680 Saving with consolidation = $5,670 - $4,680 = $990...
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This note was uploaded on 02/09/2012 for the course SCM 303 taught by Professor Bixbycooper during the Fall '09 term at Michigan State University.
- Fall '09