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 role in establishing a canadidate''s brand, How does the use of mus...

How does the use of music in political play a role in establishing a canadidate's brand?

Define how many spools should be tested for quality control, A clothing man...

A clothing manufacturer receives a shipment of 30 spools of wool from its supplier. Using Mil Std 105E under normal conditions, how many spools should be tested for quality control

Explain make-or-buy in decision, Consider the make-or- buy in decision. Giv...

Consider the make-or- buy in decision. Give three examples of situations in which a business should make, rather than buy. Give three examples of situations in which a business sho

Describe innovative ways health care organization, Safety, Health, and Secu...

Safety, Health, and Security" Please respond to the following: • Consider your current (or future) place or work and make at least two recommendations for improving the safety a

Determine that the trade offs of operation system is correct, Determine tha...

Determine that the Trade offs of operations systems is correct You may wish to ponder this trade-offs for a moment and ask the question: is this correct? Consider an organisat

Explain technology-intensive method of production, A production method that...

A production method that relies on large quantities of machines and equipment and smaller quantities of labor is referred to as a 1. variable-input-intensive method of productio

Performance and productivity measurement, Task 1 Read: Chapter 7 of the cor...

Task 1 Read: Chapter 7 of the core learning material and supporting text chapters on Performance Measurement. Task 2 Investigate: Either investigate the performance measurement

Explain does a valid contract exist between two persons, You are currently ...

You are currently an intern working for the largest law firm in Alabama. Your mentor and senior attorney introduces you to a new client, Dick Jefferson, the owner of House Doctor,

Describe the biggest organizational managerial mistake, • Determine the big...

• Determine the biggest organizational managerial mistake you have seen or read about and determine how this mistake affected the organization. • Discuss ways to ease the transi

Explain same day delivery manufacturing process, Describe FedEx Office and ...

Describe FedEx Office and Same Day delivery 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