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Business, 28.05.2020 02:04 alexandriabritt1683

Consider a retail chain that has eight stores in a given region supplied from four supply sources (i. e., as many different products). The vice president of supply chain is considering multiple options for designing and selecting a transportation network, one of which is to set up ‘milk runs’ from individual suppliers to four retail stores on each truck. If the anticipated annual sales for each product at each retail store are 840,000 units, given some other operational constraints listed below, what would be the total annual trucking cost for this milk-run network? Trucks have a capacity of 40,000 units and cost $1,000 per load plus $100 per delivery The cost of holding one unit in inventory at each retail store for a year is $0.20 Assume that only full truckloads will be shipped from suppliers to retail stores.

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