Course Solutions Uncategorized (Answered) : Plant Indiana Uses Raw Material Rate 10 000 Pounds Day Material Comes Ohio Average Cost 1 Q31931530

(Answered) : Plant Indiana Uses Raw Material Rate 10 000 Pounds Day Material Comes Ohio Average Cost 1 Q31931530

A plant in Indiana uses raw material at the rate of 10,000 pounds each day. This material comes from Ohio with an average cost of $1 per pound. Annual holding costs at the plant are 25 percent of average cost $1. Transportation choices available are as follows: Train mode: Lead Time = 15 days, carload(100,000 pounds) at $400 per carload, full train (70 cars) at $15,000. Truck mode: Lead time- 4 days, LTL at $0.07 per pound, small TL (40,000 pounds) for $2,000, large TL (60,000 pounds) for $2600. Safety inventory of raw material is kept at twice the 

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