Should it supply this market from the distribution center

Assignment Help Supply Chain Management

Reference no: EM133335221

Assignment:

1. A company ships LTL to customers in a market in the Midwest at an average cost of $40 per cwt. It proposes establishing a distribution center in this market. TL shipment costs to the DC would be $20 per cwt., the estimated inventory carrying costs are $5 per cwt., and the local cartage (LTL) cost is estimated at $10 per cwt. If the annual shipped volume is 100,000 cwt., what will the annual savings be by establishing the distribution center?

2. Suppose the company in problem 13.8 had another market area located between the parent plant and the proposed distribution center. The LTL costs from the plant to that market are $35 per cwt. The company estimates that LTL shipments from the distribution center will cost $6 per cwt. Should it supply this market from the distribution center or central supply?

Reference no: EM133335221

Questions Cloud

Optimal number of warehouses in a logistics network : For most firms, the optimal number of warehouses in a logistics network-is where the total inbound transportation and storage costs are minimized.

Explain the services offered by freight forwarders in kenya : Describe bill of landing and outline changes that are outlined in the bill of landing. Explain the services offered by freight forwarders in kenya.

How can supply chain take a leadership role in sv programs : 5V initiatives are developed at the corporate level, and not initially supply chain focused. How can the supply chain take a leadership role in SV programs?

Develop the scope of the overall mission statement : Sourcing strategy must be developed within the scope of the overall mission statement and ensure, to the extent possible, achieving organization's objectives.

Should it supply this market from the distribution center : The company estimates that LTL shipments from the distribution center will cost $6 per cwt. Should it supply this market from the distribution center?

Analyze the betapharm case in your hbs packet : Read and analyze the BetaPharm (A) case in your HBS Packet. Develop a position paper for George Brannigan on sourcing (1) Malic Acid.

Identify appropriate packing materials to package products : Identify the process for selecting appropriate packing materials to package products. Explain typical steps to protect products from weather.

Which supply chain manager can put this program in place : Which of the following will be the BEST way in which the supply chain manager can put this program in place?

Determine the feasibility of marketing a new product : A supply management organization partners with another department to determine the feasibility of marketing a new product.

User Account

All Pages