Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 04 Apr 2018 My Price 4.00

consignment inventory

TopOil, a refiner in Indiana, serves 3 customers near Nashville, Tennessee, and maintains consignment inventory (owned by TopOil) at each location. Currently, TopOil uses truck load (TL) transportation mode to deliver separately to each customer. Each truck costs $800 plus $250 per stop. Thus, delivering to each customer separately costs $1,050 per truck. TopOil is considering aggregating deliveries to Nashville on a single truck. Demand at the large customer is 60 tons/year, at medium is 24 tons/year, and small is 8 tons/year. Product cost for TopOil is $10,000 per ton and it uses a holding cost of 25%. Truck capacity is 12 tons. Derive a tailored policy, and indicate the corresponding costs and inventories.

Answers

(5)
Status NEW Posted 04 Apr 2018 06:04 PM My Price 4.00

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