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Romero 1 CASE 9-2: BASEBALL CARD EMPORIUM DATA R A V W S=VW Ta(air carrier) Tm(motor carrier) Y Motor Air Weight Motor cwt Air cwt Days per year $ $ $ $ 6,000 100 200 28% 56 2 5 18% 0.80 1.50 50 0.40 0.75 360 units days days per unit per unit pounds Annual rate of demand (units) Cost of placing an order ($ per order) Value or cost of one unit of inventory ($ per order) Carrying cost per dollar value of inventory per year (% of product value) Inventory carrying cost per unit per year ($ per unit per year) Air Order Cycle Time (days) Motor Order Cycle Time (days) Cost of carrying inventory in transit (% of product value) $0.80 rate per cwt (100 lbs.) $1.5 per cwt (100 lbs.) unit weight per fan QUESTION 1: EOQ for Nittany Fans in units? In pounds? Q = SQRT (2RA/VW) Q= Q= Q = units 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 + [motor order cycle/360] RVY TAC motor = TIC motor carrier + motor carrier rate * R TIC motor= TAC motor= QUESTION 4: Total Cost for using air carrier transportation TIC air = ½ QVW + AR/Q + [air order cycle/360] RVY TAC air = TIC air + air carrier rate * R TIC air= ` TAC air= QUESTION 5: Which alternative should BBE use? Please put a check mark (X) in your recommendation Air Carrier ` Motor Carrier 2 RA VW ...
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