Explain which option is more economical, Operation Management

Assignment Help:

A company is the logistics vendor for B Company. B has daily shipments of a power-steering pump from its Ohio plant to an auto assembly line in Alabama. The value of the standard shipment is 250,000. A has two options. 1. Its standard 2-day shipment. 2. a subcontractor who will team drive overnight with an effective delivery of 1 day. The extra driver costs 175. B's holding cost is 35% annually for this kind of inventory

Please explain in detail.

Question
1. which option is more economical
2. what production issues are not included in the data presented?

 


Related Discussions:- Explain which option is more economical

Analyzing layouts with computers, Analyzing Layouts with Computers Du...

Analyzing Layouts with Computers Due to the advent of computers and software faculties. Presently computers are used to design the facility layout. Digital computers are wide

Case an American Tragedy: How a Good Company Died?, Do you think that inade...

Do you think that inadequate strategic planning was a factor that resulted in the company''s asking for trade protection?

What happen to the degree of objective risk, If a corporation doubles the n...

If a corporation doubles the number of exposure units, what may be said to happen to the degree of objective risk? Explain your answer and state the basic principle illustrated.

Describe how you perceive personality, In this assignment, you will develop...

In this assignment, you will develop a ten item survey that will be given to all applicants at your company. The purpose of this survey is to determine whether the applicant is a p

Operations management, A. How does your organization determine customer req...

A. How does your organization determine customer requirements? ?B. How are your organization''s core competencies tied to its strategic goals?? C. What are the strengths and weakne

Explain the factors affecting motivation, Explain the factors affecting mot...

Explain the factors affecting motivation . Factors influencing motivation: Achievement-Personal satisfaction in problem solving and job completion. Advancement-Promot

Time lag effects - operations function, Time Lag Effects - Operations Funct...

Time Lag Effects - Operations Function Feedback control in complex systems can bring its own problems, due to time lag between measuring the output deviation and realising the

Desicion making chapter 1, analyze the decision tree in figure A.8 what is ...

analyze the decision tree in figure A.8 what is the expected payoff for the best alternative? first be sure to infer the missing probabilities

What steps must to be taken to maximize the sales-price, Identify key gaps ...

Identify key gaps in planning for the exit. Provide recommendations on the exit strategy. Is the sale the right one? What steps ought to be taken to maximize the sales-price? What

OPERATTION MANAGEMENT, DISCUSS THE ADVISABILITY OF USING MODULAR ASSEMBLIES...

DISCUSS THE ADVISABILITY OF USING MODULAR ASSEMBLIES IN MANFACTURING

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