Reference no: EM132119475

Over the next 12 months Bradley Metals (Located in Vancouver) will order aprox. 6000 of forging units (from Kurrat Tools, located in Montreal) with the average weight of 15 LBS/unit.(6000/12= 500 units per month).

6,000 forging units*15 lbs =90,000 lbs total shipment weight over the next 12 months.

500 forging units*15 lbs= 7,500 lbs per shipment per month is required to fill the demand.

In the perfect scenario reoccurring orders made by Bradley Metals will be ordered the first week of every month to Kurrat Tools since Bradley needs a 3 week production time frame to complete the orders.

For example: When Kurrat places an order on Monday July 1st,2018 Bradley Metals will have a 3 week time frame to complete the order. Thus Monday July 16th,2018 will give a one week lead time to fulfill the monthly demand (assuming end of the month order deadline for monthly requirements).

Using the chapter one Module of trucking for this example:

Best and most cost effective method would be via truck given the lead time. Montreal to Vancouver is roughly (4,910 KM)=3.5 days of travel based on 13 hours of drive time aloud to Canadian drivers (46 hours/3.5days=13 hours aprox/day).

Personally I would use an LTL service provider to bring the order to their facility to cross dock the order onto a FTL truck. This would eliminate any unnecessary troubles Bradley Metals may have in supplying their own FTL providers. Using the LTL service providers would also be more cost effective again assuming these forgings can be skidded (as the dimensions of the product are not listed).