Question

Question 3JLSB is currently serves three key accounts customers around Johor, and maintains consignment inventory (owned by JLSB) at each location. Currently, JLSB uses Truck Load(TL) transportation to deliver separately

to each customer. Each truck costs $800 plus $250 per stop. Thus, delivering to each customer separately costs $1,050 per truck. JLSB is considering aggregating deliveries to customer in Johor on a single truck. Demand at th earge customer is 600 tons a year, demand at the medium customer is 240 tons per year,and demand at the small customer is 80 tons per year. Product cost for JLSB is $10,000 person, and it uses a holding cost of 25 percent. Truck capacity is 40 tons. Based on the information given, determine the following (a)The annual transportation and holding cost if JLSB ships a full truckload each time a customer is running out of stock and days of inventory agreed for each customer under this policy. (b)The optimal annual transportation and holding cost if JLSB ships separately to each of them and days of inventory agreed for each customer under this policy. (c)The optimal annual transportation and holding cost if JLSB aggregates shipmentsto each of the three customers on every truck that goes for delivery, and days ofinventory agreed for each customer under this policy. (d)The tailored aggregation that offering lower costs and inventories than the policies in (b) or (c).

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