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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