What production issues are not included in the data


Monczka-Trent Shipping is the logistics vendor for Handfield Manufacturing Co, in Ohio. Handfield has daily shipments of a power-steering pump from its Ohio plant to an auto assembly line in Alabama. The value of the standard shipment is $250,000. Monczka-Trent has two options: (1) its standard 2-day shipment or (2) a subcontractor who will team drive overnight with an effective delivery of 1 day. The extra driver costs $175. Handfields's holding cost is 35% annually for this kind of inventory.

a) Which option is most economical?

b.) What production issues are not included in the data presented above?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: What production issues are not included in the data
Reference No:- TGS086277

Expected delivery within 24 Hours