Please solve complete 1. A retall has sixteen stores in a region supplied from elght supply sources. Trucks have a capacity of20,000 units and cost $1,000 per load plus $200 per delivery. Thus, a truck making two deliverlescharges $1,400. The cost of holding one unit in inventory at retail store for a year is$1.00.The vice president of supply chain Is considering whether to use direct shlpping from suppliers to retailstores or setting up milk runs (2 and 4 stores milk run) from suppliers to retail stores.A. What network do you recommend if annual sales for each product at each retail store are 600,000?What is the total transportation and inventory cost of this strategy?B. What network do you recommend if anual sales for each product at each retail store are 300,0007What is the total transportation and inventory cost of this strategy?

Direct deliveries refer to those that originate from one location and end at one receiving location.…

A. What network do you recommend if annual sales for each product at each retail store are 600,000? What is the total transportation and inventory cost of this strategy? B. What network do you recommend if annual sales for each product at each retail store are 300,0007 What is the total transportation and inventory cost of this strategy?

A. What network do you recommend if annual sales for each product at each retail store are 600,000? What is the total transportation and inventory cost of this strategy? B. What network do you recommend if annual sales for each product at each retail store are 300,0007 What is the total transportation and inventory cost of this strategy?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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