Case on the lookout for. 2 Baseball Card Cooperative

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Circumstance 9. a couple of Baseball Cards Emporium

Baseball Card Emporium (BBE) of Lewistown, Pa, is a supplier of football cards to sports card retailers. The market place encompasses the majority of Pennsylvania, asian Ohio, and New Jersey. The cards will be printed in Neenah, Wisconsin, and presently shipped to Lewistown by means of motor transporter transportation. Kenny Craig, vp of strategies, has asked his staff to evaluate employing air company service to dispatch the cards.

Nick Gingher, director of distribution, has collected the subsequent information: Twelve-monthly demand: 5, 000 situations of playing cards

Case value (price): one hundred dollar each

Products on hand carrying price (annual): 28%

Cost per order to replace inventory: $100

In-transit inventory carrying expense: 18%

Transit time applying motor jar: 2 days and nights

Motor time carrier charge: $0. 70 per cwt. (100 pounds. )

Air carrier time: $1. 55 per cwt.

Unit excess weight: 50 pounds. per circumstance

Questions --

1 ) What is the economic buy quantity to get BBE in units? In pounds? installment payments on your What will the total expense (not looking at transportation-related costs) of the EOQ? 3. What is the total price for employing motor company transportation? 5. What is the overall cost intended for using atmosphere carrier travel? 5. Which usually alternative will need to BBE use?

Solution

1 . EOQ = sqrt (2*DS/H) = sqrt ((2*5000*100)/(0. 28*200) = 133. 63 = 134 circumstances = 134*50 =6700 pounds 2 . Total Cost sama dengan 134*200 & [5000/134]*100 + 134/2*0. 28*200 = $34352 3. Total cost intended for using electric motor transport sama dengan 6700/100*0. eight *38= $2036. 8 some. Total expense for applying air company = 6700/100*1. 5 *38= $3819 a few. BBE will need to use motor carrier vehicles

Case 9. 2 Hockey Card Emporium

Baseball Cards Emporium (BBE) of Lewistown, Pennsylvania, is actually a distributor of baseball playing cards to athletics card stores. Its industry area includes most of Pa, eastern Ohio, and Nj-new jersey. The credit cards are published in Neenah, Wisconsin, and currently sent to Lewistown via motor carrier transport. Kenny Craig, vice president of logistics, provides asked...

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