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...

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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
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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....
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