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

Value of a Loyal Customer (VLC), A manufacturer of business copier workstat...

A manufacturer of business copier workstations has a 75 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overhead

Explain what are the issues management, What are the issues management of S...

What are the issues management of Starbucks needs to address? Analyze and evaluate the issues identified. Recommend a set of actions management should take to address the issues th

Linear programming, Premier coatings Zambia ‘PCZ’ produce both interior and...

Premier coatings Zambia ‘PCZ’ produce both interior and exterior paints from two raw materials, Ml and M2. A market survey indicates that the daily demand for interior paint cannot

Explain should you raise or lower price, If elasticity is -2, price is $10,...

If elasticity is -2, price is $10, and marginal cost is $8, should you raise or lower price?

Explain what is its current yield, Consider a $1,000 par value, 7% annual c...

Consider a $1,000 par value, 7% annual coupon bond. The bond matures in 9 years. Assuming the bonds required return is 10%, what is its current yield? (Semi-annually compounding)

Explain setup cost is independent of order size, 1. A stock out occurs when...

1. A stock out occurs when an item that is typically stocked is not available to satisfy a demand the moment it occurs. 2. A backorder occurs when a customer order cannot be fil

Explain minimum probability of performing needed, A system consists of thre...

A system consists of three identical components. In order for the system to perform as intended, all of the components must perform. Each has the same probability of performance. I

Explain the probable destiny of lee peterson''s company, Consider this: Lee...

Consider this: Lee Peterson has invented a new product that detects water leaks due to broken pipes and sends out an alarm similar to a smoke alarm. However, Lee has very little pe

Explain router could not be used as a fire wall, Which of the following cou...

Which of the following could not be used as a fire wall? a. hub b. router c. server d. PC

Criteria for a good layout, Criteria for a Good Layout Maximum Fl...

Criteria for a Good Layout Maximum Flexibility: A good layout will be one which can be rapidly modified to meet changing circumstances. In this context particular attent

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