Reference no: EM132323428 , Length: word count : 4000
SUPPLY CHAIN MANAGEMENT
INSTRUCTIONS
The word limit for this portfolio is as follows:
• Group assignment: Approximately 3000-4000 words, excluding references, tables, appendices, cover sheet, etc.
Presentation is a key aspect. The following criteria will be considered to assess the quality of your work: presentation - clear structure and following of instructions; signs of effort put in this assessment; correct referencing (where applicable); correct language, grammar and spelling. It is the student’s responsibility to refer to the marking guide and understanding the marking criteria.
TASK 1 : Create a purchasing plan for identifying, qualifying, evaluating, and selecting supplier(s) for ‘Smart Scooter Company (SCC)’which is planning to import, assemble, and sell ‘electric scooters (e-Scooter)’ in New Zealand.
A comprehensive purchase plan would cover a range of purchasing-related operational aspects such as:
Product technical specificationstable– A technical specifications list should include at least the following components:
Frame
Motor
Battery
Controller
List the supplier pre-qualificationor evaluation criteria which will be used for qualifying and evaluating and selecting suppliers. Briefly explain the reasons for choosing each of these criteria.
Using the criteria in (2) draw a table to compare at least FIVE potential suppliers supplying electric scooters.
Research and compare incoterms(international commercial terms) and conditions of these suppliers. Are these terms acceptable to SCC and how do they compare to other potential suppliers.
Select the best supplier from the list of potential suppliers. Briefly explain the reasons for selecting this supplier. Briefly explain the potential risks of selecting this supplier.
Assume the annual demand for electric scooter is 3600units. For this level of annual demand, determine the most effective order quantity to purchase from the supplier. Assume the appropriate data required to compute EOQ using the following equation
Q=√(2DS/H) = √(2DS/IP)
The relevant data supplied for this question:
Annual demand, D = 3600 (given),
Ordering cost, S = your estimated value of ordering cost,
Inventory holding cost, H = I*P (where I is inventory percentage = 0.20, P = price of the scooter)
Table 1: Discount Price Schedule for the Discount Model
|
Discount Number
|
Discount Quantity
|
Discount %
|
Discount Price
|
|
1
|
0 to 999
|
No discount
|
$700
|
|
2
|
1000 to 1999
|
4%
|
$672
|
|
3
|
2000 and more
|
5%
|
$665
|
TASK 2 : Create an import plan for planning, organising, and managing the shipping, transporting, and clearing of electric Scooter or its components purchased from an international supplier.
A comprehensive import plan would cover a range of import-related operations aspects such as:
1. Compare the terms of delivery, cost and delivery time of importing electric scooters using the following modes of transport:
a. Sea freight
b. Air Cargo
2. Determine which mode of transport is best suited for your company and explain the reasoning behind your decision.
3. For importing electric scooters, you will need to use the services of a freight-forwarder. Compare at least two freight-forwarders and select one.Justify your choice.
4. Assuming the annual demand for electric scooter is 3600units, determine the most effective order size for shipping the scooters from the supplier.
5. Determine the total and per unit Landed Cost, including all transport, Customs Clearance, port charges,and local delivery charges for importing electric scooters.
a. Note: Create an itemized list showing the cost of shipping, transport and import costs &averagecosts for each item, for sea freight.Cost of shipment depends on volume and weight of goods, which will need to be determined.
6. Compare the cost of importing Full Container Loads (FCL) and Less Than Container Loads (LTL).
7. Determine the time window for transportation of electric-scooters from supplier location to importer location in Auckland.Provide a breakdown of transport stages and time estimate.
TASK 3 :
Create a warehouse operation plan for planning, organising, and managing the warehousing and storage of electric scooter(E-Scooter, Picture attached below) imported from an international supplier.
Assume the dimension of the warehouse is 8mX6mX4m (Length x Width x Height) and the annual demand for electric scooter is 3600 units.
Assume a holding cost of NZ$1 per unit per week for operating the warehouse.
1. Compare the types of handling, storage equipment, their purpose, options andcosts. Select the material handling equipment required for unloading/loading, moving and storing electric scooters.
2. Estimate the maximum space available for storage,while taking into consideration layout design,aisle width, health and safety, hazardous substances storage, etc. Based on these parameters determine the most effective order size for optimal storage.
3. Determine the total and per unit cost for storing electric scooters.
4. Illustration using a diagram of warehouse layout.
5. Create a table listing the cost of purchasing, shipping and storing electric scooter and the total cost of importing electric scooters. For each stage also create a column to show the most optimal order size i.e., the order size that minimises your cost.
6. Compare and comment on the costs and order sizes you have estimated for each stage.
a. Have you achieved to lowest possible cost (total cost and per unit cost) for importing scooters? If not, how can you minimise the total cost of importing? What would be the most optimal order size?
