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Calculate the average daily transportation costs

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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

Reference no: EM132768709

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