Reference no: EM132295560
Analyzing the Total Cost of Ownership
Assignment Overview
The TCO is a method for determining costs that extends beyond direct purchases to include the costs involved in supplier relationships. In this assignment, you will determine the TCO for an organization's supply chain.
Assignment Directions
To complete this assignment:
• Review Case 5, "W-G-P Chemical Company," on pages 450-453 of your Supply Chain Logistics Management text.
• Write a 4-page paper with supporting appendices that addresses questions 1, 3, and 4 on page 453. In your paper, be certain to:
o Analyze the TCO for the organization.
o Evaluate alternative courses of action based on TCO.
o Recommend, based on an evaluation of the available case data, additional metrics that would enable the organization to better and more strategically operate its business.
CASE : W-G-P Chemical Company
Questions
1. What is the total distribution cost for W-G-P Chemical Company? What is the cost per pound, cubic foot, case, line, and order? How can these measures contribute to the distribution review process?
2. On a map, plot the distribution facilities and network for W-G-P Chemical Company. What product and market characteristics can help explain this distribution structure?
3. What alternative methods of distribution should W-G-P consider for Prevention and Support?
4. Discuss the rationale for:
A. The early order program,
B. Customer pickup policies,
C. Use of public versus private warehouse facilities.
Attachment:- Case-W-G-P Chemical Company.rar