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 capital investment, Sawyer's a local bakery, is worried about incre...

Sawyer's a local bakery, is worried about increased costs- particularly energy. Last's records can provide a fairly good estimate of the parameters for this year. Judy Sawyer, the

Define appraisal cost are associated with preventing defects, 1. The invest...

1. The investment a company makes in training employees to perform their duties and redesigning products and processes to improve them would be categorized as prevention costs. 2.

Explain organization''s structure and culture, Why would an organization ch...

Why would an organization choose a corporate level strategy to expand its value-creation activities beyond its core domain? Discuss how an organization's structure and culture migh

Selection is an vital part of recruiting, Selection is an important part of...

Selection is an important part of recruiting as it will ultimately lead to job offers. Which employee selection method would you recommend using? Provide an example and explain the

Explain quality metrics, A variety of organizational culture characteristic...

A variety of organizational culture characteristics make project success more likely. The characteristics include: A. Sufficient funding B. Feasible schedule C. Respect fo

Explain employees accepting responsibility, The workplace is moving from ca...

The workplace is moving from career ladders to career tracks, with employees accepting responsibility for managing their own careers. Elaborate on this new phenomenon, discussing s

Explain about the term flexible firm, Explain about the term flexible firm....

Explain about the term flexible firm. Flexible firm: By John Atkinson the conception of the “flexible firm” was proposed, he recognised about organisations will need grea

EOQ model, Division X is growing and is in constant need of trained employe...

Division X is growing and is in constant need of trained employees. The demand rate for trained employees is relatively constant at 5 each month. The division can run a gaining p

Explain the knowledge acquisition and application phase, Discuss the pros a...

Discuss the pros and cons of the major technologies used in: a. The knowledge creation and capture phase. b. The knowledge sharing and dissemination phase. c. The knowledge acquisi

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