Donegal Footwear is an intemational supplier of outdoor footwear for adventurous families. Currently, the company uses a logistical provider to provide warehouse services and handle packages destined for ground delivery. The contract calls for $12 million in annual fixed charges, which covers the provider's overhead and warehouse costs, and varlable costs of $16.00 per package shipped. Recently, Donegal Footwear found a warohouso it could lease at a cost of $18 million per year, which includes lease costs, labor, and management oversight. Furthermore, the company found another provider who would deliver packages from the warehouse for $10.00 per package. Considering only costs, how many packages must Donegal Footware ship to make the vertical integration into warehouse operations beneficial? Donegal Footwear must ship packages to make the vertical integration into warehouse operations beneficial. (Enter your response as an integer.) more than less than
Donegal Footwear is an intemational supplier of outdoor footwear for adventurous families. Currently, the company uses a logistical provider to provide warehouse services and handle packages destined for ground delivery. The contract calls for $12 million in annual fixed charges, which covers the provider's overhead and warehouse costs, and varlable costs of $16.00 per package shipped. Recently, Donegal Footwear found a warohouso it could lease at a cost of $18 million per year, which includes lease costs, labor, and management oversight. Furthermore, the company found another provider who would deliver packages from the warehouse for $10.00 per package. Considering only costs, how many packages must Donegal Footware ship to make the vertical integration into warehouse operations beneficial? Donegal Footwear must ship packages to make the vertical integration into warehouse operations beneficial. (Enter your response as an integer.) more than less than
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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