Vertival integration into warehouse operations beneficial

Assignment Help Operation Management

Reference no: EM132250701

Donegal Footwear is an international supplier of outdoor footwear for adventurous families. Currently, the company uses a logistical provider to provide warehouse services and handle packages destined for ground delivery. The contract calls for $9 million in annual fixed charges, which covers the provider's overhead and warehouse costs, and variable costs of &15 per package shipped. Recently, Donegal Footwear found a warehouse it could lease at a cost of $16 million per year, which includes lease costs, labor, and management oversight. Furthermore, the company found another provider who would deliver packages from the warehouse for $6.00 per package. Considering only costs, how many packages must Donegal Footwear ship to make the vertival integration into warehouse operations beneficial?

Reference no: EM132250701

Questions Cloud

How can consumers and businesses protect themselves : Fraud detection can be critical when it comes to data and being able to analyze that data. Some examples of fraud would be credit card fraud.

The customer saying about the service and the product : What are the customer saying about the service and the product? What is the root cause of any decline in revenue, or production time?

How hr practices differ in a small businesses in comparison : Explain how H.R practices differ in a small businesses in comparison to an international setting?

What was the ultimate outcome of the erp implementation : Who were the parties to the project? What vendor or consultants were involved? What was the scope of the project?

Vertival integration into warehouse operations beneficial : Considering only costs, how many packages must Donegal Footwear ship to make the vertival integration into warehouse oeprations benefitial?

Identify a nonprofit health care organization : Compare and contrast the strengths and weaknesses of each organization from patient, provider, administrator, and third-party payer perspectives.

Why should some firms not pursue international business : The textbook points out that not all firms should go global. In view of the vast opportunities, why should some firms not pursue international business?

Contemporary creative thinkers : Name at least one or two contemporary creative thinkers who more recently similarly impacted the world with their own creative thinking.

What were the implications with regard to collaboration : Reflect on any personal/professional instances in which you have been a member of a team that appeared to function similarly to CEO Jonas' group in this case.

User Account

All Pages