solution

SuperPart, an auto parts distributor, has a large warehouse in the Chicago region and is deciding on a policy for the use of TL or LTL transportation for inbound shipping. LTL shipping costs $1 per unit. TL shipping costs $850 per truck plus $150 per pickup. Thus, a truck used to pick up from three suppliers costs 850 + (3 * 100) = $1,150. A truck can carry up to 2,000 units. SuperPart incurs a fixed cost of $150 for each order placed with a supplier. Thus, an order with three distinct suppliers incurs an ordering cost of $450. Each unit costs $50, and SuperPart uses a holding cost of 23 percent. Assume that product from each supplier has an annual demand of 3,000 units. SuperPart has thousands of suppliers and the company must decide on the number of suppliers to group per truck if using TL. What is the optimal lot size that Good Buy should order (partial aggregation)?

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Looking for a Similar Assignment? Our Experts can help. Use the coupon code SAVE30 to get your first order at 30% off!

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp