Explain should the company implement the new rate, Operation Management

Assignment Help:

The traffic manager of a monarch Elactric Company has just received a rate of reduction offer from trucking company. The proposal ia a rate of $3 per hundredvweight (cwt). if a minimum of 40000 pounds is moved in each shipment. currently shipments of 20000 pounds or more are moved at rate of $5 per cwt. if shipment fall below 20000 pounds a rate of $9 per cwt applies.
to help traffic manager make decision:

annual demand on warehouse 5000 motor per year

warehouse replenishment orders 43 orders per year

weigh of each motor crated 175lb per motor

standard cost of motor in ware house $200 per motor

stock replenishment $15

ineventory carrying costs as a percentage of avearge value of inventory on hand per year 25 % per year

handling cost .30 per cwt

warehouse space unlimited

Should the company implement the new rate?


Related Discussions:- Explain should the company implement the new rate

Explain the organizational structure that results, Describe the organizatio...

Describe the organizational structure that results from each of the different bases of departmentalization?

Calculate the path mean and network diagram, For the following data: ...

For the following data:   Time (in Days)   Activity Immediate Predecessor Optimistic Most Likely

Expensive car you can afford if you finance it for months, You have saved $...

You have saved $5000 for a down payment on a new car. The largest monthly payment you can afford is $350. The loan would have a 10% APR based on the end of month payments. What is

Factors affecting scheduling - internal factors, Factors Affecting Scheduli...

Factors Affecting Scheduling - Internal Factors Internal Factors: These are the factors which are with in the control of the management. These factors should be manipulated in

Explain what is the optimal opder quantity for coffee, A special coffeehous...

A special coffeehouse sells Colombian coffee at a fairly steady reat of 30 pounds per month. The beans are purchased from a local supplier for $3.20 per pound. The coffeehouse esti

Explain consumer products into brazil, What steps could a company take to a...

What steps could a company take to avoid making product design and marketing mistakes when introducing new consumer products into Brazil?

Explain traits are required for a coach of a cricket team, Explain importa...

Explain important traits are required for a coach of a cricket team. The three important traits needed for a coach of a cricket team are:- (i) Decisiveness - The coach is c

Explain what will be dividend pay-out ratio, Axel telecommunications has a ...

Axel telecommunications has a target capital structure that consists of 70% debt and 30% equity. The company anticipates that its capital budget for the upcoming year will be $3mil

Explain what must the beta of this stock be, A stock has an expected return...

A stock has an expected return of 10.2 percent, the risk-free rate is 4.5 percent, and the market risk premium is 8.5 percent. What must the beta of this stock be?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd