Grainger Distribution.docx - Anthony Ament Professor Jacovino BMGT 406 Grainger Distribution 1 190,000x40 190,000x0.4 = 76,000 a 190,000x60 190,000x0.6

# Grainger Distribution.docx - Anthony Ament Professor...

• 1

This preview shows page 1 out of 1 page.

Anthony Ament 8/2/19 Professor Jacovino BMGT 406 Grainger Distribution 1. 190,000x40% ---- 190,000x0.4 = 76,000 a. 190,000x60% ---- 190,000x0.6 = 114,000 i. 5*76,000 = \$380,000 ii. 114,000*5 = \$570,000 iii. Shipping costs - .0018x76,000x1,870 = \$255,816 iv. Shipping Cost LA - .0018x114,000x1,620 = \$332,424 v. 190,000x3 = quality check (570,000) vi. 190,000 x.022x7,240 = 30,263,200 2. 190,000*\$5 = \$950,000 = quality assurance check a. 190,000*5 = \$950,000 = quality assurance check in LA b. Goods transported: K=82% of 190,000 ---- \$155,800 cost to transport c. 155,800*0.0018*1,620 = \$454,312.80 – transportation cost

Unformatted text preview: d. Total distance = 7240 – 155,800*7,240*0.0220 = \$24,815,824 – distribution cost e. Total cost = 950,000+950,000+950,000+454,312.80+24,815,824 = 28,120,136.80 3. The company should add the new LA distribution center – as noted above, it would reduce the distribution cost of the company. 4. While the distribution center is a smart business move and beneficial, the company should investigate things like the demand in 10-20 years which could drastically impact their operations side of the business....
View Full Document

• Fall '17

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern