Input Data
Placement cost per order 100.00$
TL cost per Truck 800.00$
#
suppliers
Cost /
Supplier
Order
Size
Quantity
on Truck
Pickup cost per supplier 100.00$ 2 6,000$ 600 1,200
LTL cost per unit 1.00$ 1 7,746 775 775
Unit cost 50.00$ 2 6,000 600 1,200
Holding cost 20% 3 5,292 529 1,587
Truck capacity 2000 4 4,899 490 1,960
5 4,700 400 2,000
Annual demand (D)
3000 6 4,667 333 2,000
7 4,729 286 2,000
Intermediate calculations 8 4,850 250 2,000
Fixed cost per order using TL (S) 1,000.00$ 9 5,011 222 2,000
Fixed cost per order using LTL (S) 100.00$ Number of suppliers grouped / truck 210 5,200 200 2,000
Holding cost per unit (H) 10.00$ Fixed cost using TL per truck 1,200.00$ 11 5,409 182 2,000
12 5,633 167 2,000
TL Costs with 1 supplier / Truck TL Costs with multiple suppliers / Truck
Optimal order size (Q) 775 Order size (Q) per supplier 600
Time between orders = 3.10 Months Time between orders = 2.40 Months
Annual order cost = 387$ Annual order cost per product = 500$
Annual trucking cost = 3,486$ Annual trucking cost per product= 2,500$
Annual holding cost = 3,873$ Annual holding cost per product = 3,000$
Total annual cost = 7,746$ Total annual cost per product = 6,000$
LTL Costs Total quantity on truck = 1,200
Optimal order size (Q) 245
Time between orders = 0.98 Months
Annual order cost = 1,225$
Annual trucking cost = 3,000$
Annual holding cost = 1,225$
Total annual cost = 5,449$
Our goal in this problem is to compare the use of LTL, TL separately for each supplier, and TL with aggregation of multiple
suppliers. The LTL calculations are in cells B28-34, the TL with a single supplier calculations are in Cells B21-26, and the TL
with aggregated supplier calculations are in Cells E21-26. Costs for the three policies are shown in Cells B26, B34, and E26.
Change the number of suppliers in Cell E17 to obtain the
cost of grouping them on a single truck in Cell E26.
Input Data
Placement cost per order 100.00$
TL cost per Truck 800.00$
Pickup cost per supplier 100.00$
LTL cost per unit 1.00$
Unit cost 50.00$
Holding cost 20%
Truck capacity 2000
Annual demand (D) 1500
Intermediate Calculations
Fixed cost per order using TL (S) 1,000.00$
Fixed cost per order using LTL (S) 100.00$ Number of suppliers grouped / truck 8
Holding cost per unit (H) 10.00$ Fixed cost using TL per truck 2,400.00$
TL Costs with 1 Supplier / Truck TL Costs with Multiple Suppliers / Truck
Optimal order size (Q) 548 Order size (Q) per supplier 250
Time between orders = 4.38 Months Time between orders = 2.00 Months
Annual order cost = 274$ Annual order cost per product = 600$
Annual trucking cost = 2,465$ Annual trucking cost per product= 1,200$
Annual holding cost = 2,739$ Annual holding cost per product = 1,250$
Total annual cost = 5,477$ Total annual cost per product = 3,050$
LTL Costs Total quantity on truck = 2,000
Optimal order size (Q) 173
Time between orders = 1.39 Months
Annual order cost = 866$
Annual trucking cost = 1,500$
Annual holding cost = 866$
Total annual cost = 3,232$
Our goal in this problem is to compare the use of LTL, TL separately for each supplier, and TL with aggregation of multiple
suppliers. The LTL calculations are in cells B28-34, the TL with a single supplier calculations are in Cells B21-26, and the TL
with aggregated supplier calculations are in Cells E21-26. Costs for the three policies are shown in Cells B26, B34, and E26.
Change the number of suppliers in Cell E17 to obtain the
cost of grouping them on a single truck in Cell E26.
Input Data
Placement cost per order 100.00$
TL cost per Truck 800.00$
Pickup cost per supplier 100.00$
LTL cost per unit 1.00$
Unit cost 50.00$
Holding cost 20%
Truck capacity 2000
Annual demand (D) 18000
Intermediate Calculations
Fixed cost per order using TL (S) 1,000.00$
Fixed cost per order using LTL (S) 100.00$ Number of suppliers grouped / truck 2
Holding cost per unit (H) 10.00$ Fixed cost using TL per truck 1,200.00$
TL Costs with 1 Supplier / Truck TL Costs with Multiple Suppliers / Truck
Optimal order size (Q) 1,897 Order size (Q) per supplier 1,000
Time between orders = 1.26 Months Time between orders = 0.67 Months
Annual order cost = 949$ Annual order cost per product = 1,800$
Annual trucking cost = 8,538$ Annual trucking cost per product= 9,000$
Annual holding cost = 9,487$ Annual holding cost per product = 5,000$
Total annual cost = 18,974$ Total annual cost per product = 15,800$
LTL Costs Total quantity on truck = 2,000
Optimal order size (Q) 600
Time between orders = 0.40 Months
Annual order cost = 3,000$
Annual trucking cost = 18,000$
Annual holding cost = 3,000$
Total annual cost = 24,000$
Our goal in this problem is to compare the use of LTL, TL separately for each supplier, and TL with aggregation of multiple
suppliers. The LTL calculations are in cells B28-34, the TL with a single supplier calculations are in Cells B21-26, and the TL
with aggregated supplier calculations are in Cells E21-26. Costs for the three policies are shown in Cells B26, B34, and E26.
Change the number of suppliers in Cell E17 to obtain the
cost of grouping them on a single truck in Cell E26.