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Case 9.2 baseball card emporium

17/12/2020 Client: saad24vbs Deadline: 24 Hours

CASE 9-2

CASE 9-2: BASEBALL CARD EMPORIUM

DATA

R 6,000 units Annual demand, cases of cards

V $ 96 Case Value Price

W 30% Inventory carrying cost

A $ 75 Cost per Order to replenish inventory

Y 18% In Transit inventory carrying cost

Motor transit time (MTT) 4 Transit Time using motor carrier

Motor cycle time (MCT) 7 days Cycle Time using motor carrier

Air transit time (ATT) 1 days Transit Time using air carrier

Air cycle time (ACT) 2 days Cycle time using air carrier

Freight Motor 1.20 per unit Motor carrier rate per cwt (100 lbs.)

Freight Air $ 2.50 per unit Air carrier rate per cwt (100 lbs.)

Weight 50 pounds Unnit Weight per case

S=VW $ 29 Inventory carrying cost per unit per year ($ per unit per year)

Motor cwt 0.60

Air cwt 1.25

Days per year 365

Order Cycle (OC) dias (Days per year*Q)/R

QUESTION 1: EOQ for Nittany Fans in units? In pounds?

Q = SQRT (2RA/VW)

Q= units

Q= pounds

QUESTION 2: Total Cost (not considering transportation-related costs) of the EOQ

TAC = (½)* QVW + AR/Q

TAC=

QUESTION 3: Total Cost for using motor carrier transportation

TIC motor carrier = ½ QVW + AR/Q +(MTT/OC)*QVY

TAC motor = TIC Motor + Motor cwt * R

TIC motor=

TAC motor=

QUESTION 4: Total Cost for using air carrier transportation

TIC air = ½ QVW + AR/Q + (ATT/OC)*QVY

TAC air = TIC air + Air cwt * R

TIC air=

TAC air=

QUESTION 5: Which alternative should BBE use?

Please put a check mark in your recommendation

Air Carrier

Motor Carrier

&RRomero &P

Sheet3

Sheet1

VW


RA


Q


2


=


Q


R


A


QVW


TAC


+


=


2


1


MBD0175872C.unknown

MBD017593E0.unknown

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