Optimal Shipment Sizes and Their Impact on Supply Chain Cost

2 Optimal Shipment Sizes and Their Impact on Supply Chain Cost 

Suppose Optima were to replace full truckloads by optimal shipment sizes. How would the optimal shipment sizes be determined Given the symbolic description earlier, consider the expression for the total logistics cost for a component from its component plant to the assembly plant. 

however, that once this quantity is obtained, feasibility of implementation requires that this quantity not exceed truck capacity. If it does exceed capacity, then it is optimal to ship at full capacity. Thus the optimal shipment quantity would be set as minimum Q, Q where C refers to the truck capacity. 

Thus the shipment sizes and the associated total supply chain costs for Optima can be computed as follows  

Optimal shipment size from Santa Fe to Boston (EOQ)  

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