Intro to Global Supp Chain Mgt

Intro to Global Supp Chain Mgt - INTERMODAL TRUCKLOAD...

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PROBLEM: CALCULATE DC's INVENTORY INVESTMENT AND CARRYING COST DC'S DATA Average Inventory In DC in units 2,000 8,500 5,500 The cost of one unit of inventory $250 $25 $10 Annual Inventory Carrying Cost Interest Rate ® 25% 15% 30% Q1: What is DC's Inventory Investment? $500,000 212,500 $55,000.00 Q2: What is DC's Annual Inventory Carrying Cost $125,000 $31,875 $16,500.00 Q3: What is DC's Inventory Carrying Cost For 6 Months $62,500 $15,938 $8,250.00 Q4: What is DC's Inventory Carrying Cost per Day (365/year) $342.47 $87 $45.21
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PROBLEM: PLANT TO DC REPLENISHMENT DECISION Should Manufacturer use truckload or intermodal carrier to replenish DC From Plant Freight Freight Costs vs. Inventory Carrying Costs
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Unformatted text preview: INTERMODAL TRUCKLOAD Trailer Capacity (in Cases) - Assume use full trailer 4,000 4,000 Freight Cost Per Shipment $2,000 $2,500 Annual Cases Shipped Plant to DC 20,000 20,000 Transit Days -- Plant to DC 15 5 Inventory Required at DC (in Cases) 3,300 1,100 Inventory Cost Per Case $15 $15 Case A Inventory Carrying Cost Interest Rate 15% 15% INVENTORY CARRYING COST $7,425 $2,475 FREIGHT COST $10,000 $12,500 ANNUAL INVCC + FREIGHT COST $17,425 $14,975 CASE B Inventory Carrying Cost Interest Rate 5% 5% INVENTORY CARRYING COST $2,475 $825 FREIGHT COST $10,000 $12,500 ANNUAL INVCC + FREIGHT COST $12,475 $13,325...
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Intro to Global Supp Chain Mgt - INTERMODAL TRUCKLOAD...

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