Reference no: EM132225241 , Length: 650 Words
Assignment - Supply Chain Integration
Case - The case for supply Chain Advisory Boards
1. Construct a financial model to determine the redelivery/rehandling cost, lost sales, invoice deduction cost, and net income for the following:
o On-time delivery increases from 98% to 99% with a 2% increase in transportation cost.
o Order fill rate decreases from 99% to 98% with operating cost remaining constant. Selling price/order = $150/order
Gross profit/order = $35/order Lost sales rate:
On-time delivery failure = 20% Order fill failure = 25%
Annual orders = 200,000
Re handling cost = $100/order
Invoice deduction/service failure = $75/order Transportation cost = $1,000,000
Average inventory = $1,000,000 Interest cost =$1,500,000
Inventory carrying cost rate = 25%/$/year Warehousing cost = $750,000
Other operating cost = $500,000 Cash = $3,000,000
Accounts receivable = $4,000,000 Fixed assets = $30,000,000
2. What is sustainable sourcing? How does it differ from ethical sourcing? How does it differ from green purchasing?
3. Read the following case and answer the following two questions.
a. How would you address Tim's thoughts above? Has he missed anything?
b. What team formation and team management advice would you give Tim?
Attachment:- case.rar