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 causes of labour turnover, Explain  causes of labour turnover. ...

Explain  causes of labour turnover. Causes of Labour Turnove: (a) Voluntary withdrawals (through the worker) because of: - Not like for the present job; - Best job

Explain approach the technology issues facing the company, As the advisor t...

As the advisor to Keyes what offensive or defensive strategic options would you recommend for blockbuster as the company moves forward? In particular, how would you approach the te

View of the cell used by jobs - process design, View of the Cell Used By Jo...

View of the Cell Used By Jobs - Process Design This figure gives a close-up view of the cell used by Jobs 1 and 2. Notice that neither of the jobs uses all of the processes in

Explain industries is most likely to use database marketing, Which of the f...

Which of the following industries is most likely to use database marketing? a. A supermarket chain b. A school system c. A local restaurant d. A p

Define save money before announcing the restructuring plans, Should GM have...

Should GM have taken any additional steps to save money before announcing the restructuring plans?

Explain artists and producers royalties, Downloading music, radio, and vide...

Downloading music, radio, and video programs from the Internet is easier than in the past, but some companies are still worried that people will illegally obtain copies of this pro

Explain leadership training and development, Leadership training and develo...

Leadership training and development throughout all levels of the organization. From your experience discuss the importance this component and why? Include examples

Productive system, To what extent should a productive system be process foc...

To what extent should a productive system be process focused or product focused?

Explain repetitive focus and mass customization strategies, Provide and exp...

Provide and explain three or more common elements and three or more differences between repetitive focus and mass customization strategies.

Explain worldwide industry environment, Organizations are structured to tak...

Organizations are structured to take advantage of their inherent strengths and also to minimize their inherent weaknesses. For example, an organization may outsource its purchasing

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