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Demand is 30000 of bulky boxes shipment is by truck capacity of a truck is 5000 boxes transit time to new york is 5 days in addition analysis of data show lead time has Sd of 2 days estimate from accounting that annual holding cost is 20% cost of product supplies for 15$ per pack assume derived 95% full truckload are shipped cost of to new York by third party carrier is 3000 assume 1 month =30 days
What is total logistics cost of the current system in $?
Transportation cost per month?
Safety Stock holding cost per month?
Cycle stock holding cost per month?
Pipeline holding cost per month?
Total cost per month?
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