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The FLEX Corporation has two plants located in Spokane WashingtonHouston, TexasSyracuse, NY and that manufacture components A and B respectively for use at an assembly plant in .
Transit time from Spokane and Houston to the plant in Syracuse is 9 days. Demand at the Syracuse plant is 250 units of component A and 125 units of component B each day.
The plants ship in full truckloads, each truck has a maximum capacity of 1750 components (both components are of similar size). Holding cost for the assembly plant and in-transit inventory is $1/unit/ day and freight cost for a truckload is $ 1500 from either component plant to Syracuse.
Problem 1: Calculate the average daily transportation costs, the daily holding costs from transportation and the average daily cycle stock holding costs
Relaford Corporation purchased a piece of equipment for $61,800. It estimated an 7-year life and $3,070 salvage value. At the end of year 4 (before the depreciation adjustment), it estimated the new total life to be 9 years and the new salvage value ..
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