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# IET 405: Production and Inventory Control Case study 3 (Total 20 points) Question 1: Supply Chain Management (4 points, Module 7, Chapter 17) Q.1.

I do not understand the concept of question 2, the scheduling problem.  Can someone please work this question for me?

A decision between 2 shipping companies (shipper-X and shipper-Y) and two alternatives - standard (Std) and basic (Basic) need to be made. 15 days expedited rate: X for \$7500 and Y for \$7250 Shipper-X offers a 25-day (std) rate of \$4400, and 32-day (basic) rate of \$4000 Shipper-Y offers a 21-day (std) rate of \$4600, and 30-day (basic) rate of rate of \$3940 300 TEU (twenty-foot equivalent unit) containers to be shipped, each container’s estimated product value is \$200,000. Annual holding cost is 30% of product-value. Answer the following: Which shipping alternative is better? (12 points, each point for each cost criteria). Show the detail of the work, only answers will get 25%. X Y Option Cost Option Cost 15 days - 15 days - 25 days - 21 days - 32 days - 30 days - Hints: Given: Q= 300 containers/month = 10 container/day Estimated product value = \$200,000 per container Annual Holding Cost (H) = 30% (Estimated product value) Find, H per day = [10]*[ H/365] = \$ /day Total Cost (TC) = Fixed Shipping Rate + Holding cost (H) per day *(No. of days)
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Q=
Prodct value =
Anuual holding cost =
Holding cost per day =
Holding cost per day = 10 containers per day
200000 per container
30%
No of containers* product value of container*0.3/365...

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