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Baseball Card Emporium Baseball Card Emporium (BBE) of Lewistown, Pennsylvania, is a distributor of baseball cards to sports card retailers. Its market area encompasses most of Pennsylvania, eastern Ohio, and New Jersey. The cards are printed in Neenah, Wisconsin, and currently shipped to Lewistown via motor carrier transportation. Kenny Craig, vice president of logistics, has asked his staff to evaluate using air carrier service to ship the cards. Nick Gingher, director of distribution, has collected the following information: Annual demand: 5000 cases of cards Case Value: $200 each Annual Inventory Carrying Cost: 28% Cost per order to replenish inventory: $100 In-transit inventory carrying cost: 18% Transit time using motor carrier: 5 days Transit time using air carrier: 2 days Motor carrier rate: $0.80 per cwt (100 lbs) Air Carrier rate: $1.50 per cwt Unit weight: 50 lbs per case what is Total Cost using Air Carrier?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92585569

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