A company is trying to decide between using TL (Truck Load)

Question # 00856260 Posted By: wildcraft Updated on: 06/17/2024 12:13 AM Due on: 06/17/2024
Subject Business Topic General Business Tutorials:
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1. A company is trying to decide between using TL (Truck Load) versus LTL (Less than truck load) for ordering a certain item. The item cost is $50 for each unit, the ordering cost is $100/order paid to the supplier, and the holding cost is 20% per year. The trucking cost is $400 for TL with a capacity of 750 units of a truck and $1 per unit for LTL. Should the company use TL or LTL if the annual demand for this item is:

a) 2000 items? (Specify the most economical Q for both options and total cost)

b) 4000 items? (Specify the most economical Q for both options and total cost)

c) At what demand level both options will cost the same.

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  1. Tutorial # 00851747 Posted By: wildcraft Posted on: 06/17/2024 12:15 AM
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