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

Line balancing, what happens if line balancing does not exist

what happens if line balancing does not exist

Explain a set of circumstances consider disciplinary action, Describe a set...

Describe a set of circumstances under which you might legitimately consider disciplinary action for a chronic complainer.

Define steps in management planning process, Define Steps in Management Pla...

Define Steps in Management Planning Process. Planning can be explained as deciding in advance what is to be completed in future. Some of the fundamental steps involved in plann

Compute sample size to confirm or not the findings, If a pilot test reveale...

If a pilot test revealed 45% perceived poor service quality, and we decide the interval range is + 10 percent with a 95% confidence level, what is the calculated sample size to con

Explain the optimal quantity and period for this problem, A large supplier ...

A large supplier of electronic components has decided to control the inventory of a certain item by a periodic review, order up to R policy. The mean demand rate for this item is 5

Explain what is the logic in the least squares method, What is the logic in...

What is the logic in the least squares method of linear regression analysis?

Discuss pressure for change originates in the environment, Noted organizati...

Noted organization theorist said, "Pressure for change originates in the environment: pressure for stability originates within the organization." Do you agree? Discuss

Why needed physicians and licensed independent practitioners, Why do you th...

Why do you think health care organizations are held accountable for ensuring the competence of their physicians and licensed independent practitioners?

Explain generally speaking and work packages, Generally speaking, work pack...

Generally speaking, work packages: Answer Are assigned to one functional unit Are not assigned to one functional unit Must be assigned to two or more functional units

Explain fedex manufacturing process, Describe FedEx manufacturing process a...

Describe FedEx manufacturing process and scheduling approach

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