Case Questions What is the EOQ (economic order quantity) for DCI in units? In kilograms? (include the in-transit carrying cost)What is the EOQ for DCI in units, not considering transportation-related

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Case Questions

  1. What is the EOQ (economic order quantity) for DCI in units? In kilograms? (include the in-transit carrying cost)
  2. What is the EOQ for DCI in units, not considering transportation-related costs?
  3. What is the total cost for using motor carrier transportation?
  4. What is the total cost for using air carrier transportation?
  5. Which alternative should DCI use, motor or air? Why?

Instruction: Please read the following document attached to answer the top questions. If using cited website please provide annotated bibliography at the end of the page.

Case Questions What is the EOQ (economic order quantity) for DCI in units? In kilograms? (include the in-transit carrying cost)What is the EOQ for DCI in units, not considering transportation-related
Dalia Card Imperium Dalia Card Imperium (DCI) of Toronto, Ontario, is a distributor of basketball cards to sports card retailers. Its market area encompasses most of Ontario, eastern Manitoba, and southern Quebec. The cards are printed in Vancouver, BC, and currently shipped to Toronto via motor carrier transportation. Dalia Hernandez, vice president of logistics, has asked her staff to evaluate using air carrier service to ship the cards. San Perera, director of distribution, has collected the following information: Annual demand: 7,200 cases of cards Value (price): $101 per case Unit weight: 25Kg per case Inventory carrying cost (annual): 29% of the annual inventory value Ordering cost to replenish inventory: $79 per order In-transit inventory carrying cost (annual): 19% of the annual inventory value Motor carrier rate: $1.20 per 50Kg Transit time using motor carrier (parcel ground): 7 days Cycle time using motor carrier (parcel ground): 10 days Air carrier rate: $2.50 per 50Kg Transit time using air carrier: 2 day Cycle time using air carrier: 3 days

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