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Nittany Fans

Nittany Fans of Lewistown, Pennsylvania, is a distributor of industrial fans used in plants, warehouses, and other industrial facilities. The fans are manufactured in Neenah, Wisconsin, and currently shipped to Lewistown via rail transportation. Kenny Craig, vice president of logistics, has asked his staff to evaluate using motor carrier service to ship the fans. Nick Gringher, director of distribution, has collected the following information

Nittany Fans: Questions

  1. What is the economic order quantity for Nittany Fans in units? In pounds?
  2. What is the total cost (w/o transportation) of the EOQ?
  3. What is the total cost for using rail transportation?
  4. What is the total cost for using motor carrier transportation?
  5. Which alternative should Nittany Fans use?

 

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M9131854

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