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 shareholder activism, McDonald's Corporation, the world's largest f...

McDonald's Corporation, the world's largest fast-food restaurant chain, with 2010 revenues of $24 billion,has recently been on a "roll." Its shareholder value has more than doubled

Order winners - operations strategy, Order Winners - Operations Strategy ...

Order Winners - Operations Strategy These are operational capabilities that directly contribute to winning business. They are generally cited as the reasons for the purchase o

Explain what has been their global competitive advantage, Select a company ...

Select a company of your choice. What has been their global competitive advantage (either successful or not)? If not, what would be your suggestion to this company if you were hire

Explain revealed its batna, During a negotiation, the union proposes a 25 c...

During a negotiation, the union proposes a 25 cent per hour wage increase across the board. Management says it cannot afford that. Management has just: A. Reached an impasse B. Est

Explain the challenges you foresee in using the mbti, Describe the challeng...

Describe the challenges you foresee in using the MBTI instrument or Keirsey Temperament Sorter in a project management situation and how you would address them. Speculate the accep

Explain how much repayment of principal, Jan sold her house on December 31 ...

Jan sold her house on December 31 and took a $50,000 mortgage as part of the payment. The 10-year mortgage has a 11% nominal interest rate, but it calls for semiannual payments beg

Describe what is the reorder point, The injection moulding department of a ...

The injection moulding department of a company that operates 24x7 uses an average of 20 gallons of special lubricant per day. It takes two weeks for an order of lubricant to be del

Explain statutory law, Statutory law is: Answer a law enacted by a legislat...

Statutory law is: Answer a law enacted by a legislative body also known as the fundamental law of the nation a form of common law the separation of powers at the federal level all

What is the objective under jit and time-based competition, _____ is the ob...

_____ is the objective under JIT and time-based competition. WIP reduction Material velocity Lead-time reduction Decreasing material wait time

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