Baseball Card Emporium Case Assignment
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Baseballcardemporiumstudentstemplate.xlsCASE 9-2
| CASE 9-2: BASEBALL CARD EMPORIUM | |||
| DATA | |||
| R | 6,000 | units | Annual demand, cases of cards |
| V | $ 96 | Case Value Price | |
| W | 30% | Inventory carrying cost | |
| A | $ 75 | Cost per Order to replenish inventory | |
| Y | 18% | In Transit inventory carrying cost | |
| Motor transit time (MTT) | 4 | Transit Time using motor carrier | |
| Motor cycle time (MCT) | 7 | days | Cycle Time using motor carrier |
| Air transit time (ATT) | 1 | days | Transit Time using air carrier |
| Air cycle time (ACT) | 2 | days | Cycle time using air carrier |
| Freight Motor | 1.20 | per unit | Motor carrier rate per cwt (100 lbs.) |
| Freight Air | $ 2.50 | per unit | Air carrier rate per cwt (100 lbs.) |
| Weight | 50 | pounds | Unnit Weight per case |
| S=VW | $ 29 | Inventory carrying cost per unit per year ($ per unit per year) | |
| Motor cwt | 0.60 | ||
| Air cwt | 1.25 | ||
| Days per year | 365 | ||
| Order Cycle (OC) | dias | (Days per year*Q)/R | |
| QUESTION 1: EOQ for Nittany Fans in units? In pounds? | |||
| Q = SQRT (2RA/VW) | |||
| Q= | units | ||
| Q= | pounds | ||
| QUESTION 2: Total Cost (not considering transportation-related costs) of the EOQ | |||
| TAC = (½)* QVW + AR/Q | |||
| TAC= | |||
| QUESTION 3: Total Cost for using motor carrier transportation | |||
| TIC motor carrier = ½ QVW + AR/Q +(MTT/OC)*QVY | |||
| TAC motor = TIC Motor + Motor cwt * R | |||
| TIC motor= | |||
| TAC motor= | |||
| QUESTION 4: Total Cost for using air carrier transportation | |||
| TIC air = ½ QVW + AR/Q + (ATT/OC)*QVY | |||
| TAC air = TIC air + Air cwt * R | |||
| TIC air= | |||
| TAC air= | |||
| QUESTION 5: Which alternative should BBE use? | |||
| Please put a check mark in your recommendation | |||
| Air Carrier | |||
| Motor Carrier |
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