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
