++整理版物流思考题.docx

1、+整理版物流思考题test twoMike McNeely, logistics manager for the Illumination Light Company, has considered replacing the firms manual customer order management system with electronic ordering, an EDI application. He estimates the current system, including labor, costs $2.50/order for transmission and proce

2、ssing when annual order volume is under 25,000. Should the order volume equal or exceed 25,000 in any given year, Mr. McNeely will have to hire an additional customer service representative to assist order reception in the manual process. This would raise the variable cost to $3.00/order. He has als

3、o estimated the rate of errors in order placement and transfer to be 12/1000 orders.EDI would cost $100,000 upfront to implement and variable costs are determined to be $0.50/order regardless of volume. EDI could acquire and maintain order information with an error rate of 3/1000 orders. An EDI spec

4、ialist would be required to maintain the system at all times as well. Her salary is $38,000 in the first year and increases 3 percent each year thereafter.Order errors cost $5.00 per occurrence on average to correct in the manual system. EDI errors cost $8.00 on average to correct since the speciali

5、st inspects the system for flaws on most occasions.a. If the firm expects order volume over the next 5 years to be 20,000, 22,000, 25,000, 30,000, and 36,000 annually, would EDI pay for itself within the first 5 years?b. What effects aside from cost might Mr. McNeely consider when implementing EDI?a

6、.Manual: order cost error cost total cost1year: 20000x2.5+(12/1000)x20000x5=512002year: 22000x2.5+(12/1000)x22000x5=563203 year: 25000x3+(12/1000)x25000x5=765004 year: 30000x3+(12/1000)x30000x5=918005 year: 36000x3+(12/1000)x36000x5=110160b.EDI: device cost salary error cost order cost total cost1ye

7、ar: 100000+38000 +20000x(3/1000)x8 +0.5x20000=1484802year: 38000x(1+3%)+22000x(3/1000)x8 +0.5x22000=506683 year: 38000x(1+3%)2+25000x(3/1000)x8+0.5x25000=534144 year: 38000x(1+3%)3+30000x(3/1000)x8+0.5x30000=57243.65 year: 38000x(1+3%)4+36000x(3/1000)x8+0.5x36000=61633.3test three1.Mr. Stan Busfield

8、, distribution center manager for Hogan Kitchenwares, must determine when to resupply his stock of spatulas. The DC experiences a daily demand of 400 spatulas. The average length of the performance cycle for spatulas is 14 days. Mr. Busfield requires that 500 spatulas be retained as safety stock to

9、deal with demand uncertainty.a. Use simple reorder point logic to determine the order quantity for spatulas.b. Based on your answer to part (a), find Mr. Busfields average inventory level of spatulas.a. Use the reorder point to find the order quantity: R = D x T + SS = 400 x 14 + 500 = 6,100 spatula

10、sreorder point is 6100, Order quantity is more than or equal to 5600. b. The average inventor is one-half the order quantity + safety sock:If Order quantity is equal to 5600, thenAverage inventory = 5600/2+500 = 3,300 spatulas4. Mr. John Eastes oversees the distribution of Tastee Sancks products fro

11、m the plant warehouse to its two distribution centers in the United States. The plant warehouse currently has 42,000 units of the companys most popular product, Chocolate Chewies. Mr. Estes retains 7000 units of the product at the warehouse as a buffer. The Cincinnati DC has an inventory of 12500 un

12、its and daily requirements of 2500 units. The Phoenix DC has an inventory of 6000 units and daily requirements of 2000 units.a. Determine the common days supply of Chocolate Chewies at each DC.b. Given the above information and your answer to part (a), use fair share allocation logic to determine th

13、e number of Chocolate Chewies to be allocated to each DC.a. Common days supply of chocolate chewies: DS = (42,000 - 7,000) + 18,500/4500=11.89 days (around) b. Fair Share Allocation Logic: Allocation = (Days Supply x Daily Requirements) - Inventory ACincinnati = (11.89 x 2,500) - 12,500 = 17,225 uni

14、ts APhoenix = (11.89 x 2,000) - 6,000 = 17,780 units Attention : Together, the allocations equal 35,005 units (17,225 + 17,780) which is 5 more than the plant warehouses allocation supply. The difference rests with the rounding of the days supply figure.2. Mr. Busfield recently completed a course in

15、 logistics management and now realizes that there are significant costs associated with ordering and maintaining inventory at his distribution center. Mr. Busfield has learned that the EOQ is the replenishment logic that minimizes these costs. In an effort to find the EOQ for measuring cups, Mr. Bus

16、field has gathered relevant data. Mr. Busfield expects to sell 44,000 measuring cups this year. Hogan acquires the measuring cups for 75 cents each from Shatter Industries. Shatter charges $8 for processing each order. In addition, Mr. Busfield estimates his companys inventory carrying cost to be 12

17、 percent annually.a. Find Mr. Busfields EOQ for measuring cups. Assume that Mr. Busfield accepts ownership of products upon arrival at his DC.b. Now assume Mr. Busfield must arrange for inbound transportation of the measuring cups since Hogan accepts ownership of products at the suppliers shipping p

18、oint. Quantities of fewer than 4000 measuring cups cost 5 cents per unit to ship. Quantities of 4000 and above cost 4 cents per unit to ship. Determine the difference in total costs associated with an EOQ of 4000 units and the EOQ level found in part (a) when transportation costs must be considered.

19、c. Given the information above and the low cost EOQ alternative determined in part (b), use period-order-quantity logic to determine the number of orders Hogan would place each year for measuring cups and the time interval between orders.a. The economic order quantity (EOQ) is the square root of the

20、 product of the numerator (two times order cost and demand) divided by the product of the denominator (inventory carrying cost times unit cost): EOQ = 2,797 cups Annual total cost with order quantities of 2,797 cups ( calculated in part (a): Inventory Carrying Costs = ( 2,797/2 ) x 0 .75 x 12% = $ 1

21、25.87 to determine Order Costs, the number of whole orders/yr shall firstly be determined: (44,000/2797) = 15.73 - roundup to 16 whole orders/yr. Oorder costs= 16 orders x $8 / order = $ 128.00 Transportation Costs = 44,000 units x $0 .05 / unit = $ 2,200 Total Cost ( EOQ = 2,797 units ) $ 2,453.87

22、/yearAnnual total cost with order quantities of 4,000 cups: Inventory Carrying Costs = (4,000/2) x 0.75x 0.12 = $ 180 Order Costs : determine the number of whole orders/ yr. 44,000 /4,000 = 11 whole orders/ yr 11 orders x $8/order = $ 88 Transportation Costs = 44,000 units x ($0.04/unit) = $1,760.00

23、 Total Cost ( EOQ = 4,000 units) $ 2,028 The order quantity of 4,000 units costs ( $2,453.87 2,028.00) $425.87 less annually than 2,797 order quantity found in part (a) when transportation costs are considered.Test 4:1. Super Performance Parts (SPP) produces braking devices exclusively for the Ace M

24、otor company, an automotive manufacturer. SPP has been leasing warehouse space at a public facility 20 miles from the companys plant. SPP has been approached by a group of four other Ace suppliers with the idea of building a consolidated warehouse to gain transportation and materials handling econom

25、ies. An investment of $200,000 would be required by each of the five companies to acquire the warehouse. Payment of the initial investment secures I0 years of participation in the agreement. Annual operating expenses are anticipated to be $48,000 for each party. SPP is currently charged $6000 per mo

26、nth for use of the public warehouse facilities.SPPs outbound transportation from the public warehouse often consists of LTL quantities. Its annual outbound transportation bill is currently $300,000. SPP expects consolidated warehousing to more fully utilize truckload quantities with transportation e

27、xpenses shared among the supplier pool. SPPs annual outbound bill would be reduced by 25 percent in the consolidated plan. Differences in inbound transportation costs are assumed negligible in this case.a. Compare the storage and shipping costs associated with consolidated warehousing as opposed to

28、SPPs current, direct shipping plan. Are any efficiencies apparent through consolidation?b. Aside from potentially reducing costs, how else might SPPbenetit by participating in the consolidated warehouse?c. What disadvantages might exist in a consolidated warehouse as opposed to a direct shipping sit

29、uation?a. Direct Shipping Plan (annual costs)Storage costs: $6,000/month x 12 months = $ 72,000Shipping costs: = $ 300,000Annual total costs: $372,000Consolidated warehousing (annual costs)Storage costs: fixed $200,000/ 10 years = $ 20,000/yearOperations cost = $ 48,000Shipping costs: ($300,000) x (

30、1 - 25%) = $ 225,000Annualtotalcosts: $293,000 b. The consolidated warehouse can be operated for $79,000 less per year over the agreements ten year life. This is a creative thinking question for the purpose of discussion. Key points may include but are not limited to: better customer service (in var

31、ious forms) to Ace, synergy through coordination with partners, SPP may be able to utilize/share assets not financially feasible on their own.c. This too is a creative thinking question. Key points might be: added risk through ownership (part-ownership), potential difficulties with coordination acro

32、ss partners, incongruent objectives may lead to tribulations, and possible cash flow difficulties due to fixed investment expenditures2. Assume you are the logistics manager for a luggage company. All bags are produced at the manufacturing facility in Guangzhou. The bags, valued at ￥30 each, are stored in a warehouse near the factory prior to distribution to DC locations in Shanghai, and the DC experiences an annual demand of 700,000 bags. Now the products are transported by rail and the average inventory f