Size of truck 40000

Batch Size 40000

Sales (Units) 120000
Number of shipments per year per supplier 3
Holding Cost per unit 0.2
Fixed Cost of transportation 1000
Variable cost per delivery 100
Number of stores to club in milk run 1
Transportation cost per shipment per store 1100
Annual trucking cost 105600

Average Inventory at each store 20000

Inventory Cost 128000

Total Cost 233600

Price 120
Holding Cost 0.25
Annual Demand 120000

Lead Time Days Shipping Cost Lot Size Trans Cost Cycle Inv safety Inv
Rail 6 6.5 2000 78000 1000 986.30137
NE Trucking 4 7.5 1000 90000 500 657.53425
Golden 4 8 500 96000 250 657.53425
Golden 4 6 1500 72000 750 657.53425
Golden 4 4 2500 48000 1250 657.53425
Golden 4 4 3000 48000 1500 657.53425
In transit inv Average InventInventory Cost Total Cost
1643.835616 3630.136986 108904.109589 186904.11
986.3013699 2143.835616 64315.0684932 154315.07
986.3013699 1893.835616 56815.0684932 152815.07
986.3013699 2393.835616 71815.0684932 143815.07
986.3013699 2893.835616 86815.0684932 134815.07
986.3013699 3143.835616 94315.0684932 142315.07