Total Assigned Cost for Shipper A Assigned Cost for Each Shipment
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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. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?After applying the NWC Rule for the initial tableau of the given transportation model, evaluate the vacant cells. What is the cell which has the most negative evaluation value and what is the cell evaluation value? DESTINATION SOURCE DEMAND X Y N OX-R; 1 OY-S; -1 OX-S; -1 OY-S; -2 P 75 8 12 EI 11 Q 80 5 8 11 R 120 7 10 10 S 50 11 13 14 SUPPLY 100 125 100 325Tsaltz 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…
- A- Determine the transportation cost for a parcel - with size 230 cm X 180 cm X 300 cm - and weight 7654 Kg - Rate quoted is $93 per tone / per cubic meter On which base the carrier is going to offer freight cost, and whyIn your own words, describe EDI and how it works in a logistics environment.Distinguish between Inbound ( IBL ) and Outbound Logistics ( OBL ) in a value chain with relevant examples .
- 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.Describe how a shipper can reduce the following:a. Pickup and delivery costs.b. Terminal-handling costs.c. Billing and collecting costsThe 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.
- 16. Which of the following transportation modes has the lowest cost per ton? A. Truck B. Rail. C. Pipeline. D. Multiple mode.Wagner Company supplies electric motors to ATK Electronic on adelivered price basis. Wagner has responsibility for providingtransportation. The traffic manager has three transportation servicechoices for delivery: rail, piggyback, and truck.ATK purchases 50,000 units per year at a delivered contract price of$500 per unit. Inventory holding cost for both companies is 30percent per year. Calculate total related costs for each mode oftransportation. Transportation Mode Transit Time,Days Fix Rate, $/delivery Variable rate, $/Unit Shipment size, units 1)Rail 16 10.000 25.00 10.000 2)Piggyback 10 15.000 40.00 8.000 3)Truck-Truck load 4 1.000 75.00 5.000 4)Truck-Less than truck load 4 500 85.00 1.000Large trucks are an important piece of the logistics chain. However, there were 333,000 large truck crashes in 2012, resulting in almost 3,800 fatalities, the majority being drivers or passengers of other vehicles, not the truck driver. One accident in 2014 caused a public uproar when a Walmart truck driver fell asleep at the wheel after being awake for 24 hours and crashed into another car, killing one person and critically injuring others, one being a well-known comedian. The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration enacted tougher hours-of-service rules that went into effect in July 2013. One report claimed that the industry would lose $1 billion in lost productivity as a result of these rules, while another concluded the industry would realize almost $500 million in benefit from reduced driver mortality. The new rules have caused considerable controversy and have caused hardships for drivers. As one driver put it, “If the wheels aren’t…