...MGT301 Assignment 4 Click Link Below To Buy: http://hwcampus.com/shop/mgt301-assignment-4/ Question 1 Your company makes snow blowers and this winter they have been selling very well. You are evaluating a quote from a supplier for engines that power your snow blowers. The quote is as follows: Price Terms Distance Order quantity Weight Tooling Quality Failures Supplier 1 $90 2% 10 Net 45 200 1500 20 lbs $25000 3% Assume the following: Annual volume for engines is expected to be 90,000 units Inventory holding rate is 25% Cost to place an order is $100 Working capital costs are 12% Your freight rate is $1.75 per ton mile for a full truckload (40,000 lbs) and $2.00 for a less-thantruckload shipment There are 365 days in a year. Late-delivery costs should be ignored. What is the total cost of ownership for supplier 1? (Show your work.) 1 MGT301, Spring 2016 Assignment 4 – 25 Points Name_________________________ Question 2 A company using a weighted-criteria evaluation system has established these 3 categories for supplier evaluation and the appropriate weight are in parentheses: Quality(0.50), Technology(0.20), Cost(0.30). The scores for each category for Company A are: Quality(90), Technology(75), Cost(60) The scores for each category for Company B are: Quality(80), Technology(95), Cost(90) The scores for each category for Company C are: Quality(90), Technology(80), Cost(95) Calculate the weight score for each supplier...
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...Managerial Staistics Saturday 10:00 -12:00 Optimization Unlimited A. Probabilities of a truckload Formula: P(E) = f/n 1 Dry Method Total Truckloads 184 Bluberries in traditional dry method 125 Probability 125/184 0.679347826 2 Wet Method Total Truckloads 184 Bluberries in traditional dry method 59 Probability 59/184 0.320652174 3 Classified as No. 1 Total Truckloads 184 Blueberies harvested in dry method 137 Probability 137/184 0.744565217 4 Classified as No. 2 Total Truckloads 184 Blueberies harvested in dry method 47 Probability 47/184 0.255434783 "B. " Conditional Probability W D Total 1 20 27 47 2 39 98 137 59 125 184 1 Analogous probability 20/59 0.338983051 Probability that given a wet harvested truckload ,it will be classified as No.2 39/59 0.661016949 1 2 Total W 20 39 59 D 27 98 125 47 137 184 2 Probability that a load is harvested using dry method if it is classified as No. 1 =27/47= 0.574468085 Probability that a load is harvested using wet method if it is classified as No. 1 =20/47= 0.425531915 3 Bernoulli Process P[k] = nCk*p^k*q^(n-k) No. of Trials...
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...School of Engineering & ICT KXO325 Business Logistics Practical 7.0 Warehousing1 John Vance, president of Vanity Products, is reading the latest financial results reported in the company newsletter. Every time he reads this year’s financials, he recalls the company’s early days and the struggle to get retailers to stock his new line of bathroom vanities, mirrors, and light fixtures. Today, the company is straining to produce enough products to meet retailer demand. Vanity Products (VP) manufactures a variety of bathroom accessories, including vanities (medicine chests), mirrors, lighting fixtures, and shelving. The products are made of rust-‐ and chip-‐resistant molded plastic and come in a variety of modern designs and colors. The plastic construction permits VP to produce high quality bathroom accessory at an affordable price. In the middle of the 1990s, John focused the ...
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...a new product introduction, or unexpectedly high demand could create product shortages at the central warehouse; a transportation equipment failure or adverse weather conditions could delay product delivery to regional warehouses (e.9., snow could cause the central warehouse and regional warehouses in northern Italy to close, while regional warehouses in southern areas of the country would remain open for business, in some cases stocking out of product). From time to time, both the regional warehouses and the central warehouse would be out of stock of a particular item. When this happened, the impact on smaller retail customers, who generally had little or no stock of their own from which to satisfy their customers' needs, was typically greater than on larger retailers. Built-in appliance products were generally sold directly to architects and developers to be incorporated into new dwellings. No built-in appliance stock was distributed through Merloni's regional warehouse facilities. Customers in this channel, generally more sophisticated and ordering in higher volumes than retail customers, ordered directly from the central warehouse in Fabriano. The built-in market represented 45% of Merloni Elettrodomestici's business. The company aimed to give its built-in customers a high level of service. Merloni Elettrodomestici's appliance sales were subject to wide seasonal fluctuation. Exhibit 6 shows monthly sales levels for the company's product lines. In 1984, Merloni...
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...inbound logistics would consist of their local stores that receive and store inventory of packages that customers can come pick up and drop off. Besides their local stores, they both only have a few regional warehouses that they use for bigger packages and delivers. This is where Con-way exceeds. Because of Menlo, Con-way goes further than just storing and receiving packages and deliveries. They actually help manage transportation and warehousing with business which is their main customers. Operations Con-way Inc. operations are comprised of three business segments. That is Con-way Freight, Menlo Worldwide Logistics and Con-way Truckload. Con-way’s major operations include less than truckload services, full truckload services, and contract logistics, freight brokerage, warehousing, and supply chain management services. Con-way Freight and Truckload mostly have the operations of transporting goods for local and worldwide business. Menlo on the other hand help many different companies around the world with creating a flexible supply chain solution, warehousing and managing contract logistics. Within operations...
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...CASE STUDY: DOMINO’S PIZZA DOMINO’S PIZZA DELIVERS - TO DOMINO’S CHALLENGE: SAVING DOUGH IN A UNIQUE SUPPLY CHAIN Because Domino’s Pizza Distribution delivers only to Domino’s stores, supply-chain inefficiencies can’t be shifted to a trading partner or a retailer. After all, Domino’s is both! On the other hand, efficiencies gained anywhere in the supply chain – from better labor and pallet utilization in the warehouse to optimized deliveries – go directly to the bottom line. Domino’s Pizza is a world leader in pizza delivery, operating a network of more than 7,800 stores in the United States and around the world. To support these stores, Domino’s Pizza Distribution operates 17 domestic distribution centers. CLIENT: “Time saved is the biggest benefit. Using Park City Group, we streamlined the tactical and expanded the strategic. With Park City Group’s order enhancement, we use the time saved to make more strategic decisions that will lower inventory levels. Because distribution centers must never run out of supplies and ingredients, planners pad the safety stock. We’d rather be heavy than wrong. As planners become more confident in their new model they can back off, reducing distribution centers safety stocks – and cutting corporate costs – with no risk of running out.” -Jimmy Simonte, National Director of Inventory Management Domino’s Pizza Distribution To find out more about Park City Group solutions, call us at 435645-2000 or visit us on the web at www.parkcitygroup.com...
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...Barilla Spa (A) Report on Supply Chain Management Issues Table of Contents Executive Summary Issue Identification Root Case Analysis Alternatives and Options Recommendations Implementation Monitor and Control Exhibits Executive Summary Giorgio Maggiali, director of logistics of Barilla SpA stated the the growing burden that demand fluctuations imposed on the company's manufacturing and distribution system. The solution was proposed as Just In Time Distribution Program. Due to specific Barilla's supply chain system it is not quite simple. Barilla needs to improve their own forecasting system and need to develop a set of decision rules. They need to re-group and decide where to go with JITD. For this purpose the main issues where identified and and recommendations were made. The implementation plan is filled with immediate and short run activities. Barilla enjoys a strong brand image in Italy. It was driven by success as the highest quality pasta for every Italian family - “Where is Barilla, there is a home”. Timely distribution of quality products is a strategic mission Barilla SpA and the recommendations made can be used to reflect and strengthen this mission. Issue Identification The following are the list of issues that must be addressed: • Too many different types of distribution centres • Long inventory time • Small product variety in stores • No minimum or maximum order quantities • Long lead time • ...
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...competition, potential entrants, substitutes, suppliers. P.A.M. Transportation Services, Inc. (P.A.M.) is a holding company. Through its subsidiaries, the Company operates as a truckload dry van carrier transporting general commodities throughout the continental United States, as well as in certain Canadian provinces. It also provides transportation services in Mexico under agreements with Mexican carriers. The Company’s operations can be classified into truckload services or brokerage, and logistics services. Truckload services include those transportation services, in which the Company utilizes Company-owned trucks or owner-operator owned trucks for the pickup and delivery of freight. The brokerage and logistics services consists of services, such as transportation scheduling, routing, mode selection, transloading and other value- added services related to the transportation of freight, which may or may not involve the use of Company owned or owner-operator owned equipment. According to the American Trucking Association’s “American Trucking Trends 2011” report, the trucking industry transported approximately 68% of the total volume of freight transported in the United States during 2009, which equates to 8.8 billion tons and approximately $544 billion in revenue. The truckload industry is highly fragmented and is impacted by several economic and business factors, many of which are beyond the control of individual carriers. The state of the economy...
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...of his twelve children are involved full time in the operation of the business. RT and Dorothy knew if their new business was going to be a success, it would have to be built on a strong foundation. So, they instilled a set of values within Dot that has never wavered in fifty years. Today, the trucks in the Dot fleet bear their brand promise: trusted values, innovative solutions, and shared growth. It reminds their employees what the company expects of them, and what their business partners can expect from Dot Foods. Dot Foods is the largest food redistributor in the United States, serving more than 3,000 food distributors with coast-to-coast deliveries from 480 manufacturers. Dot consolidates these products and delivers in less-than-truckload (LTL) quantities to distributors nationwide on a weekly basis. With headquarters in Mt. Sterling, Illinois, this family-owned and operated business has experienced strong and steady growth since it was founded in 1960. It started from a one man operation delivering fifteen different products from the back of a station wagon, to a thriving national corporation employing over 2,000 people and delivering goods from an inventory list of over 40,000 products. Dot Foods remains the family business it always was, operating on values of innovation, integrity, hard work, and respect for others. In addition to their headquarters in Mt. Sterling, Illinois, Dot has seven other regional distribution centers across the country. This expansive reach ensures...
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...Supply Chain of Madura MAL produced 85 lakh metres of 200-metre rolls, using 22 lakh kilos of yarn annually. Interlinings are the material used as an extra lining between the ordinary lining and the fabric of a garment (for shaping the garments, also called skeleton of dress) The process for making interlinings from yarn required weaving, bleaching/ dyeing and a powder coating process. Figure 4 gives a brief view of the process flow. MAL contracted out the weaving and bleaching/dyeing processes, while the powder coating was done in-house. Weaving Weaving Bleach or dye Bleach or dye Powder coating Powder coating Powder coating Powder coating The following activities were involved in the supply chain. 1. Yarn bought from 4 merchants in Madurai 2. Yarn quality checked in Madurai warehouse 3. Issued to contract weavers for conversion to grey fabric (7 converters in Erode, Coimbatore, Madurai and Ambasamudram) 4. Grey fabric brought to Madurai warehouse for and quality checked 5. Grey fabrics issued to bleaching houses for conversion to white/coloured fabric (3 converters in Erode, Bhavani and Ambasamudram) 6. White/coloured fabric brought to Madurai warehouse and quality checked. 7. Fabrics issued to own mfg house (Ambassamudram) for final processing and coating to produce interlinings. Then quality checked, packed and sent to Bangalore central warehouse (CW) 8. Interlinings stocked at Bangalore CW and sent to the 11 depots as per despatch...
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...• How many pills equate to $10m in revenue? $10m = X * $0.37 X = 27,027,027.03 = Rounded up 27,027,028 pills equate to $10m in revenue • What is the volume of $10m worth of pills? Per Pill = 1.5 cm3 $10m worth of Pills converted to cm3 27,027,028 Pills = 40,540,542 cm3 1 Liter = 1000 cm3 40,540,542 / 1000 = 40,540.54 Liters 1 Gallon = 3.7854 Liters 40,540.54 Liters / 3.7854 Liters = 10,709.71 Gallons 64 Gallons = 1 Drum 10,709.71 Gallons / 64 Gallons = 167.34 Drums The volume of $10m worth of pills is 167.34 Drums • How many truckloads are required to carry $10 million worth of pills? One 18-wheeler Truck = (17m (100) * 4.5m (100) * 2.5m (100)) = 191,250,000 cm3 Truckload(s) to carry $10m worth of pills = 40,540,542 cm3 / 191,250,000 cm3 = 0.211977 = 21.1977% One truckload is more than enough to carry $10 million worth of pills, approximately 21.1977% of a truckload or roughly one fifth of the truck equates to $10 Million worth of pills. 2. How should the company recognize revenue based on each of the two possible FOB contract structures mentioned in the case? Explain. The two possible FOB contract structures are a) FOB Shipping Point and b) FOB Destination: a) Based on FOB Shipping Point, Biovail would have recognized revenue once the shipment of Wellbutrin XL left Biovail’s manufacturing facility in Manitoba, Canada on September 30, 2003. b)...
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...ACME Pump Company Case Study Posted on March 10, 2013 by Brad The Problem: ACME Pump Company is spending over 7 million a year between inbound and outbound shipments. Additionally they are recording losses of over $36,000 in emergency shipments. The logistics costs are too high and must be reduced to ensure both short and long term stability due to long distances traveled between locations. Analysis: * Furthest outbound shipment York PA to Savannah, GA (667 Miles) * Furthest inbound shipment Greensboro, NC to York PA (402 Miles) Outbound from Scranton, Pennsylvania: * Negotiated Previously: One-way truckload rate of $4 per mile and a 45% discount off of class rates with a regional LTL carrier. A Fuel Surcharge of 20% was negotiated for both LTL and TL Shipments. Suppliers/Inbound Freight: Richmond, Virginia * Pumps consist of a casting and a few internal components and an electric motor * Raw pump castings that are purchased from suppliers are made of iron and shipped LTL class 60 * Many of the internal components are class 85 * ACME places orders with suppliers every day, picked, packed and shipped within two days. * Main suppliers are essentially shipping to ACME on a daily basis. * ACME suppliers provide exceptional quality but the suppliers are about 25% the size of ACME * Pump Gutts, Inc – Richmond, Virginia * Average Order Size – 1900lbs Material Valued at $17,500 * FOB, Shipping Point, Prepaid. * LTL Carriers...
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...other brands, Horizon needs to improve delivery service. Factor and Solution Failure in using system approach is one of the reasons why Horizon failed to provide better service to customers. According to system approach theory, Horizon should see things as a whole, instead of individual activities. For example, orders should be all done by Horizon, then Horizon will arranging delivery courier. By doing so, Horizon can use truckload or carload when shipping products to customers because Horizon can gather all orders delivery location and separate them based on areas. This will save some delivery cost. Besides that, Horizon should use only one courier service and the best available to deliver shipments. This can prevent shipments delivers inaccurately and slow, and at the same time, increase customers’ satisfaction. Fast and accurate courier services normally cost more than others. This is the trade-off of having expensive courier and customers’ satisfaction. To lower down the total transportation cost, Horizon can use the cost saved from doing truckload or carload to minus out the expensive courier shipment. Thus, Horizon needs to see things as a whole...
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...billing, shipping, tracking, and business solution for large and small businesses, and individuals. Services for Individuals are: • My UPS and UPS account – This service has features such as billing information, account summary, address book, etc; and can be maintained online by the customer. • Shipping – The customer can create and start a shipment online, calculate the time and cost for the shipment, schedule pick-ups, and create returns and imports. • Tracking – This feature allows the customer to track packages and freights with services like Quantum view, UPS my choice, Flex global view and Void a shipment. • Freight – Services for freight are Critical Freight, Air Freight, Ocean Freight, LTL (Less then truckload) and Trucking (Full truckload), and UPS Cross border connect. • The website lets customers order supplies online. • UPS Communication via E-mail – The website has features like New product announcements/enhancements, promotions and offers, newsletters, and service updates/ regulatory changes. • Customer service – Customers will be able to contact to the UPS staff via Live chat, phone call, and other online support. They can also connect with UPS on Facebook and Twitter. • Locations – Customers can find various UPS locations on the website. Services for Small and Large Businesses are: • My UPS and UPS account – This service has features such as billing information, account summary, address book, etc; and can be maintained online by the customer...
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...ippingU.S.-Mexico Shipping Options White Paper In brief Understanding what can happen at the U.S.-Mexico border with your truckload shipments could impact the decisions you make—and whether or not you will actually get what you pay for. By reviewing the process and your options, you will be able to develop better, more efficient strategies to help minimize costs and risk. Contents Cross-Border Shipping: A Primer 1. Carrier restrictions 2. Cargo inspections 3. Cargo insurance 4. Equipment availability Northbound Shipments, Step by Step Southbound Shipments, Step by Step 7 Tips for Choosing a Cross-Border Provider C.H. Robinson | U.S.-Mexico Cross-Border Services 4 4 4 5 6 6 7 8 2 If you’re not already shipping products via truckload across the U.S.-Mexican border, it’s probably only a matter of time, considering that Mexico is the United States’ third-largest trading partner.1 More than 18,000 companies with U.S. investment already have operations in Mexico,2 and many others ship their products across the border. This white paper will better prepare you to join them. There are two distinct methods of truck transportation across the border: transloading and direct service. In transloading, product is transferred from one trailer or container to another at a warehouse or terminal before crossing the border and being taken to FIGURE 1 Main land-border the final delivery. In direct service, a trailer or container crossings...
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