A retail chain has eight stores in a region supplied from four supply sources. Trucks have...

A retail chain has eight stores in a region supplied from four supply sources. Trucks have a capacity of 40,000 units and cost $1,000 per load plus $100 per delivery. Thus, a truck making two deliveries charges $1,200. The cost of holding one unit in inventory at retail for a year is $0.20.

• The vice president of the supply chain is considering whether to use direct shipping from suppliers to retail stores or setting up milk runs from suppliers to retail stores. • What network do you recommend if annual sales for each product at each retail store are 960,000 units?

• What network do you recommend if sales for each product at each retail store are 120,000 units?

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keosha answered 4 weeks ago

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