Crunchy inc has hundreds of suppliers currently crunchy, Ask an Expert

Management Studies

Crunchy Inc. has hundreds of suppliers. Currently, Crunchy uses full TL (Truckload) transportation to obtain separately from each supplier. Truckload shipping costs $500 per truck and a $100 per pickup. The truck capacity is 2,000 units. Crunchy is considering the aggregation of inbound shipments to lower costs. Average annual demand from each supplier is 10,000 units. Each unit cost $100 and Crunchy incurs a holding cost of 20 percent.

a) What is the order size, frequency and the total cost (holding and ordering) for each supplier under their current policy of full truckload shipping?

b) What is the optimal order size, frequency and the total cost (holding and ordering) for each supplier if no aggregation is considered?

c) What is the optimal order size, frequency and the total cost (holding and ordering) for each supplier if five suppliers are aggregated?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92036073

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 what three strategies are there for incorporating tracer

1. What three strategies are there for incorporating tracer methods in a healthcare facility. 2. A repairman at a local metal working shop services their five drill presses. Service time averages 12 minutes and is expone ...

In this assignment you will recommend the components of a

In this assignment, you will recommend the components of a career development planning program and explain how the plan will integrate the organization's mission and value statements. Consider the following scenario: You ...

1 define authentic ethical and servant leadership and

1. Define authentic, ethical and servant leadership and provide examples. 2. What is mentoring? How can this assist someone in their career progression? 3. Compare and contrast the project planning functions between supp ...

The steel shelf company has the following operating

The Steel Shelf Company has the following operating costs: Rent $3,000 per month Utilities 1,100 per month Insurance 1,500 per quarter Property Taxes 6,000 per year Steel $9.00 per shelf Labor $1.00 per shelf Sales Price ...

1 locate an online cultural diversity self-assessment and

1. Locate an online cultural diversity self-assessment and complete it. 2. Provide the link for the online assesment that you complete. 3. Why did you choose this assessment? 4. Interpret the results and identify two aer ...

Consider starbucks as a production system in which the

Consider Starbucks as a production system in which the final product is a customer. For this system: a. Define quality from the producer's and customer's prospective. b. Develop a fitness-for-use description for final pr ...

1 according tonbsp the washington post ldquofacebook ceo

1. According to the Washington Post, “Facebook CEO Mark Zuckerberg expressed contrition for allowing third-party apps to grab the data of its users without their permission.” Do you think by allowing third-party to acc ...

Assignment1 the natural rate of unemployment depends on

Assignment: 1. The natural rate of unemployment depends on factors that affect the behavior of both workers and firms. Make lists of possible factors affecting workers and firms that you believe are likely to influence t ...

1 describe the six ebusiness tools for connecting and

1. Describe the six ebusiness tools for connecting and communicating. 2. Discuss the 3 implications of the legislative success of health associations. 3. Compare the four categories of ebusiness models. 4. Conduct Servic ...

1 discuss 3 employee motivation compensation performance or

1. Discuss 3 employee motivation, compensation, performance, or other issues related to human resources. What are three challenges and what 2 strategies would you propose using to address those issues (6 total strategies ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert