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

Define relationship among the different levels of management, 1. Show graph...

1. Show graphically, and explain, the relationship between the different levels of management, types of problems, and types of decisions. What do we mean by the term "bounded ratio

Explain what''s the difference between these abbreviations, In e-mails writ...

In e-mails writers sometimes use abbreviations such as FYI(for your information), ASAP(as soon as possible). Others writers sometimes use LOL (laughing out loud), 4 u(for you), gr9

Discuss the strategic importance of layout decisions, Discuss the strategic...

Discuss the strategic importance of layout decisions. How important as these decisions in terms of a company's long-term profitability goals? What are some examples?

Explain mean flow time, Jane Reed bakes breads and cakes in her home for pa...

Jane Reed bakes breads and cakes in her home for parties and other affairs on a contract basis. Jane has only one oven for baking. One particular Monday morning she finds that she

Explain how does this sort of thing happen in organizations, We have all wo...

We have all worked with someone who did not seem to fit the role for which he or she was hired, or did not seem to fit in with the organization, or did not have the right skills fo

Explain when communicating a change, When communicating a change, which rol...

When communicating a change, which role is more important: reporter of information or sense maker? Why

Explain nlra rules regarding union, How does the law regarding union recogn...

How does the law regarding union recognition for public employees in the state of Florida compare with the NLRA rules regarding union recognition for private-sector employees?

Explain involuntary bankruptcy under the bankruptcy code, Samantha (Sam), a...

Samantha (Sam), a book dealer, has the following assets: a building worth $155,000, accounts receivable amounting to $32,500 due within the next three months, and $25,000 cash in t

Explain how effective are actions by project managers, Provide two examples...

Provide two examples of current leaders and describe how they demonstrate their leadership characteristics. What separates these characteristics from management techniques? How eff

Describe presence of an outside threat correlates, Some people argue that t...

Some people argue that the presence of an outside threat correlates with high degree of team cohesion. Would you agree or disagree?

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