More severe oscillations in the inventory level

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Reference no: EM132157935

1. Which role in the supply chain could observe more severe oscillations in the inventory level?

Retailer

Wholesaler

Distributor

Factory

2. A supplier could ship by air? (instead of by? truck) for an extra cost of? $600. If we choose air? freight, the parts will arrive 7 days earlier than if the supplier ships by truck.

The value of the parts? we're purchasing is? $78,500 and the inventory holding cost? (H) is? 30% per year.

Assume 365 days per year.

A. Choose the airfreight carrier to minimize transportation time and overall costs.

B. Choose ground transportation since holding cost savings are less than the extra for faster shipping.

C. Not enough information is given to figure this out.

D. Choose ground transportation since holding cost savings are greater than the extra cost for air shipment.

Reference no: EM132157935

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