How much is the afi currently making per month

Assignment Help Supply Chain Management

Reference no: EM133388677

Case Study: The BestAirFyer available is made by AFl. Right now, they outsell both their competion. Inventory, however, is a problem for AFI. Given the brief lifespan of their product. when a new product is introduced, companies frequently write off a sizable amount of their inventory. They currently operate a completely automated facility San Fransico. Each year, they sell roughly 960,000 units. Right now, they manufacture product until they have a full truck load (4,000 BestAirFyers), at which point they send a complete truck load to their Atlanta distribution center for $600.00. Following that, the distribution center mails out individual units to online clients for a shipping and handling fee of $22.00. Retailers receive LTL truck shipments from the distribution facility. 400 of each are shipped out at a time. For these shipments, the distribution center charges $400.00. The distribution center also has a fixed monthly fee of $5,000 dollars. AFI sells its units online for $100 each, while charging $82 to large retailers. 30% of their clients are retail clients. Each Air Fyer is produced at a cost of $53.00 to AFI.

Question # 1 - How much is the AFI currently making per month?

Question # 2 - DHL visits AFI and assures them that they can assist AFI with retail shipments. They just need to recruit a part-time employee costing 2,000 to prepare monthly shipments. DHL will ship to any location AFI desires for $400.00 each pallet of 400 set top boxes. How much money a month would AFI save, taking DHL recommendation?

Question # 3 - AFI has decided to go ultra-lean, and in order to do so, it will insource all single order online shipping. This effectively eliminates superfluous inventory in the system. They cleared some floor space and hired employees to package, label, and ship the things. They projected that shipping and handling would be $27 per set top. This lean method would put an end to all excess inventory. How much money a month would AFI save, taking the lean expert's advice?

Reference no: EM133388677

Questions Cloud

Find a successful supply chain management case study : Find a Successful Supply Chain Management Case Study. Identify what was the Supply Chain changes the company has incorporated. Explain what are your learnings

Should there be limits or no limits on campaign finance : Does the Electoral College lead to elitist-influenced electoral system? Should there be limits or no limits on campaign finance? Why or why not?

How technology adoption could offer the opportunity : How technology adoption could offer the opportunity to supply chain and logistics operations? Compare the concept of a modern supply chain with more traditional

Types of federalism : Your answer should define key terms and specify the types of federalism we discussed in class, and should provide examples.

How much is the afi currently making per month : How much is the AFI currently making per month? DHL visits AFI and assures them that they can assist AFI with retail shipments.

Should texas have a state income tax : Texas, unlike most states in the U.S., does not have a state income tax. In your opinion, should Texas have a state income tax?

Proactive approaches to stakeholder relationships : What are the differences between the relative, defensive, accommodative, and proactive approaches to stakeholder relationships?

What questions do you have regarding the necessary elements : What questions do you have regarding the necessary elements required to form a legally binding contract; or in what circumstances is a contract legally formed

What is apple procurement strategy : What is Apple's Procurement strategy? How is the quality of the components evaluated? Where the suppliers are located? You will have to show the component name

User Account

All Pages