CL_07_Homework_Frt_vs_InvCC

CL_07_Homework_Frt_vs_InvCC - PROBLEM PLANT TO DC...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
PROBLEM: PLANT TO DC REPLENISHMENT DECISION Should Manufacturer use truckload or intermodal carrier to replenish DC From Plant Freight Costs vs. Inventory Carrying Costs DATA INTERMODAL TRUCKLOAD Trailer Capacity (in Cases) - Assume always ship a full trailer 3,000 3,000 Freight Cost Per Shipment $1,000 $1,500 Annual Cases Shipped Plant to DC 30,000 30,000 Transit Days -- Plant to DC 15 5 Inventory Required at DC (in Cases) 4,500 1,500 Inventory Cost Per Case $10 $10 CASE A Inventory Carrying Cost Interest Rate 25% 25% INVENTORY CARRYING COST FREIGHT COST ANNUAL INVCC + FREIGHT COST $- $- CASE B Inventory Carrying Cost Interest Rate 10% 10% INVENTORY CARRYING COST FREIGHT COST ANNUAL INVCC + FREIGHT COST $- $-
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
PROBLEM: PLANT TO DC REPLENISHMENT DECISION Should Manufacturer use truckload or intermodal carrier to replenish DC From Plant Freight Costs vs. Inventory Carrying Costs INTERMODAL TRUCKLOAD Trailer Capacity (in Cases) - Assume always ship a full trailer 1,000 1,000 Freight Cost Per Shipment
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/26/2012 for the course GSC 115 taught by Professor Miller during the Fall '11 term at Rider.

Page1 / 3

CL_07_Homework_Frt_vs_InvCC - PROBLEM PLANT TO DC...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online