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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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