Spartan plastics provides components to assembly plants in, Ask an Expert

Management Studies

Spartan Plastics provides components to assembly plants in the automobile industry. Currently, they ship directly from their plant in St. Louis, Missouri, to plants in Lansing, Michigan; Toledo, Ohio; and eight assembly plants surrounding Detroit, Michigan. In total, there are 10 assembly plants that each receives approximately 3,000 pounds per day in shipments. Currently, the company ships LTL from its plant to each assembly plant for a cost of $0.0013 per pound per mile. The company is considering two transportation alternatives to reduce cost.The first alternative is using a milk-run approach where a truckload begins in St.Louis, stops in Lansing, then the Detroit plants, and finally Toledo. The

transportation cost for the milk-run approach would be $1.30 per truck mile plus $100/stop, not including the final stop in Toledo. The second alternative is to consolidate a truckload to Ypsilanti, Michigan, and then cross-dock the components for delivery to the assembly plant by the logistics provider. The truckload cost is still $l.30 per mile, and the cost per delivery to each assembly plant from Ypsilanti is $200.

a. What are the cost characteristics of each delivery option?

b. What are the qualitative and service characteristics of each delivery option?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92179432

Have any Question?Write your Review or question?

Related Questions in Operation Management

Please complete the following problems1 you have been

Please complete the following problems: 1. You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1500 two years from now, and $10,000 ten years from ...

Find an example illustration or application of this weeks

Find an example, illustration, or application of this week's topic from any source listed in this week's assignment. Any sources should be cited. • The news media (including newspapers, trade publications, magazines, onl ...

Scenarioapply both the policy analysis model and the ideas

Scenario: Apply both the policy analysis model and the ideas about justice to the proposal to raise the minimum wage in South Dakota to $8.50 per hour and then adjust it in the future for inflation. Question: Identify at ...

In order to be successful in business one must be able to

In order to be successful in business, one must be able to recoginize problems and solve them in order to succeed in the business arena. With that conveyed, Barbara Corcoran of the popular television program, "Shark Tank ...

1 the flow rate of customers at a state fair is 100 per

1. The flow rate of customers at a state fair is 100 per hour. The fair is open from 8am to 8pm. How many customers come through the fair during that time? 1. 1000 2. 120 3. 100 4. 1200 2. The oft-told story of the Nords ...

The dean of a small university calls a meeting of board

The dean of a small university calls a meeting of board members and department chairpersons to determine whether or not the university should establish a research lab. This sort of occasion is known as a A. bottleneck. B ...

1 a managerrsquos position in the organization ability to

1. A manager’s position in the organization, ability to give out rewards, and other factors give the manager ________ , which is the potential to impact the behavior of other people. a) power b) influence 2. By virtue of ...

Explain its content relating it to the standards of

Explain its content relating it to the standards of PCAOB/ASB in reporting audited financial statements. Auditors' Report to the sharehoders Scope of aduit: We have aduited the accompanying consolidated balance sheet of ...

Module 2 focuses on performance productivity and rewarding

Module 2 focuses on performance, productivity, and rewarding teamwork. Based on your understanding, discuss the following. Discuss how to access team productivity: What conditions need to be in place for teams to excel a ...

1 using exponential smoothing calculate the forecasts for

1. Using exponential smoothing, calculate the forecasts for months 2, 3, 4, 5, and 6. The smoothing constant is 0.2, and the old forecast for month 1 is 245. smoothing factor (alpha) 0.2 Month Actual Demand Forecast Dema ...

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