What is sustainable sourcing

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Reference no: EM132214045

Supply Chain Integration Assignment -

Q1. Construct a financial model to determine the redelivery/rehandling cost, lost sales, invoice deduction cost, and net income for the following:

On-time delivery increases from 98% to 99% with a 2% increase in transportation cost.

Order fill rate decreases from 99% to 98% with operating cost remaining constant. Selling price/order = $150/order

Gross profit/order = $35/order Lost sales rate:

On-time delivery failure = 20% Order fill failure = 25%

Annual orders = 200,000

Re handling cost = $100/order

Invoice deduction/service failure = $75/order Transportation cost = $1,000,000

Average inventory = $1,000,000 Interest cost =$1,500,000

Inventory carrying cost rate = 25%/$/year Warehousing cost = $750,000

Other operating cost = $500,000 Cash = $3,000,000

Accounts receivable = $4,000,000 Fixed assets = $30,000,000

Q2. What is sustainable sourcing? How does it differ from ethical sourcing? How does it differ from green purchasing?

Q3. Read the following case and answer the following two questions.

Case - The Case for Supply Chain Advisory Boards

a. How would you address Tim's thoughts above? Has he missed anything?

b. What team formation and team management advice would you give Tim?

Attachment:- Case.rar

Reference no: EM132214045

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1/12/2019 4:31:10 AM

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