. A company has a central supply facility and a distribution center located 400miles away. The central supply product cost is $75, TL transportation rates fromcentral supply to the DC are $60 per unit, and handling costs at the DC are $4 perunit. Calculate the market boundary location and the landed cost at the marketboundary. LTL rates are $2 per unit per mile.

. A company has a central supply facility and a distribution center located 400miles away. The central supply product cost is $75, TL transportation rates fromcentral supply to the DC are $60 per unit, and handling costs at the DC are $4 perunit. Calculate the market boundary location and the landed cost at the marketboundary. LTL rates are $2 per unit per mile.

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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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Moderate represent changing the relationship and strength of a impact of one to one so here is represent reverse logistics system towards firm performance.
The MaskMake Company manufactures a variety of masks for the healthcare professionals around Ireland. Company vans are used to deliver local orders directly to retail outlets. When their business was small, the drivers of the vans were free to take routes of their choice as they made the delivery rounds to the retail outlets. However, as the business has grown recently due to the outbreak, transportation and delivery costs have become significant. In an effort to improve the efficiency of the delivery operation, MaskMake management would like to determine the shortest delivery routes between retail outlets. For example, the following network shows the roads (distance in km) that may be taken between a retail outlet at node 1 and a retail outlet at node 11. 3 3 6 10 11 6 4 10 1 7 4 2 4 10 Determine the shortest route for a van that is currently at node 1 and must make a delivery to node 11. 2. 3.
Yasuko’s Art Emporium (YAE) ships art from its studiolocated in the Far East to its distribution center located on theWest Coast of the United States. YAE can send the art either viatransoceanic ship freight service (15 days transit) or by air freight(2 days transit time). YAE ships 18,000 pieces of art annually.(a) Calculate the average annual transportation inventorywhen sending the art via transoceanic ship freight service.(b) Calculate the average annual transportation inventorywhen sending the art via air freight.(c) What additional information is needed to compare thetwo alternatives?
7. Novelis at Oswego NY supplies rolled aluminum sheets to Ford Motor's Kansas City plant to make F150 truck. The transportation manager of Novelis needs to choose from rail, waterway, and truck. The following information are gathered to make the transportation mode decision: Transportation Mode Transit Time, Days Rate $/cwt Shipment Size, cwt Rail 15 $2.50 12,000 Waterway 20 $0.80 200,000 4 $12.50 4,000 Truck The annual transportation volume is 2.5 million cwt. The value of aluminum is $500 per cwt. Inventory carrying cost for both companies is 20% per year. Please calculate the total logistics costs (transportation, inventory at Novelis, inventory at Ford, inventory in transit), and decide which transportation mode should be selected. (20 points)
Tsaltz Inc. of Hamilton, Ontario, is a distributor of starwars themed dog tags to pet store retailers. Its market area spans most of Ontario. The dog tags are made in Calgary, Alberta, and currently shipped to Ontario via motor carrier transportation. Easton, Director of Logistics, has asked his staff to evaluate using Rail car carrier service to ship the dog tags. He obtained the following data for you to make your recommendation which carrier is best for the company. Data: R= Annual rate of demand 5000 cases V= Value of cost of 1 unit of inventory $ 48.00 per case W= Carrying cost per dollar value of inventory per year 15% inventory carrying cost A= Cost of placing an order $ 37.50 cost per order In-transit inventory carry cost 9% Transit time using motor carrier (parcel ground) 2 days Transit time using Rail car carrier 1 days Motor carrier rate $ 0.66 per cwt (100 lbs) Rail car carrier rate $1.25 per cwt (100 lbs) Unit weight 25 pounds EOQ units 228.00 units EOQ pounts…
Use the appropriate strategy to assign joint costs of an LTL route to each of the following shipments. Show your calculations and the assigned cost below. [1] A PUD truck driver works ten hours serving local customers for an LTL carrier. On the route, the driver makes 12 stops at area industries. The driver averaged 25 miles per hour while driving and drove 150 miles. During the trip, the driver handled 80 separate shipments, filling 70% of his truck by weight and 65% by the cube. The route cost a total of $2450. Using the time strategy for PUD cost assignment, determine the costs to be assigned to Shipper A and each shipment if the driver handled 4 shipments (3 delivered, 1 picked up) at the stop, and took 40 minutes to serve the Shipper. Total Assigned Cost for Shipper A Assigned Cost for Each Shipment [2] An LTL linehaul truck route takes 15 hours to complete. During the move, the truck moved an average of 36,500 pounds of freight, which filled 3200 cubic feet of the trailer. The…
JuicyJuicy Company is a dairy manufacturing company in Serdang, Malaysia. This company isthe supplier of dairy products to a number of hypermarkets in the Serdang area. It is critical thateach order be delivered (shipped) and arrive at a specified time to ensure the quality of theirproducts and a good relationship with the buyers. However, for the past two weeks the productscannot reach the location on time. Resulted to that, they are getting many complaints from thecustomers and considering to switch to other suppliers. Thus, the company must overcome theproblem as quickly as possible. (a) Recommend a suitable quality tool that could identify the problem and to monitor thebusiness performance. Please explain and justify your suggestion. (b) Develop the selected tool (answer in part (a)) to show how it can clarify all possiblecauses and solution to the issue.
On Thursdays, Traxis Consolidated delivers liquid oxygento its industrial customers in northern Michigan. The tablebelow provides the driving time in minutes among allcustomers and the Traxis liquid oxygen depot location. a. Currently, Traxis travels from the depot (A) to (F) to (G) to(D) to (E) to (H) to (B) to (C), then returns to (A). What isthe total driving time using this route?b. Using the depot (A) as the beginning location, create aroute using the NN heuristic. What is the total driving timeusing this route?c. Use the NN heuristic to calculate seven routes, each start-ing from one of Traxis’s customer’s locations. What areyour conclusions?
Explain what kind of costs you evaluate when you do the trade-off in transportation mode analysis.
on Which of the following modes of transportation is the best in Loss and Damage? Select one: O 1. Air tof O 2. Truck O 3. Rail O 4. Sea O 5. Pipeline