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 election results dismissed and a new election held, An employer cou...

An employer could violate the laboratory conditions doctrine without committing an unfair labor practice, which would cause the election results to be dismissed and a new election

Explain how globalization is affecting the political, Discuss how globaliza...

Discuss how globalization is affecting the political, legal, and economic forces impacting todays business environment?

Explain instituting formal performance appraisal, What are some prerequisit...

What are some prerequisite conditions that must exist before instituting formal performance appraisal?

I want a professional plan for this school project, I need a professional p...

I need a professional plan for this school project on this company. (• A plan of viable business options for "Family Fabrics" • A summation of expected results. Fire destroyed t

Explain all types of worker's participation, Explain all types of worker's ...

Explain all types of worker's participation. Types of Worker's Participation - Worker's participation in management may take several forms, for example:   (a) Formal partici

Explain what is each player''s expected profit, The local lottery sets up a...

The local lottery sets up a game wherein a player has a chance of collecting $800. The player must choose a 3-digit number and if it matches the lottery number, the player recei

What are the types of the workforce flexibility, What are the types of the ...

What are the types of the workforce flexibility? Types of workforce flexibility: a. Functional flexibility (task flexibility or multi-skilled employees) b. Financial f

Explain factors that influence an organizational structure, Discuss at leas...

Discuss at least three factors that influence how an mnc selects an organizational structure

Explain the pros and cons of the theory, Explain the McGregor's Theory x-y,...

Explain the McGregor's Theory x-y, the pros and cons of the theory

Explain co-worker whose job performance is superior, Spencer just learned t...

Spencer just learned that his salary is $10,000 more than a co-worker whose job performance is superior to his. Equity theory would predict that Spencer would do any of the followi

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