Oil Case

pptx

School

Collin County Community College District *

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Course

4560

Subject

Industrial Engineering

Date

Feb 20, 2024

Type

pptx

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Uploaded by BarristerIron9358

TCW’s proposal to Bell Oil

Gasket 1 - day Air ● Same Day Availability - 98% ● 99% reliability ● Transit Times - 1 day ● Chance of damages .20% ● Costs $1,000

Exhibit 3 Tank: Shipping method: 2 - 3 months through road & rail - The lowest cost of $135,000 and simplest route - Low transit delay rate - Limited likelihood to get damaged - No additional insurance required - 4 months planning time required

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Computer Server Next Day Air - Quickest transit time. - 0.20% chance of damage, which mitigates the need for insurance. - Reliability is 90%, but the delivery time should still be quick. - $5,800 cost moderately more than other options, but provides the best benefits.

Proposal Overview - Most important Bell Oil shipments have low damage rates. - Greatest cost savings are provided through the tank shipment method. - Next day delivery for gasket and computer server offset the long transit time for tank. - Overall low damage rates reduce the dependance on insurance needs. - If insurance were to be needed, the customer would still be disappointed regardless. - All shipment methods have reasonable reliability.

Oil Case

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