An alcohol Manufacturing Company from Luzon is having a tough issue in their distributions, in 3 different location North Luzon, Central Luzon, South Luzon and NCR. Their product are pack in boxes with 24 bottle per boxes, and all of this product are is coming from their main distribution center in Manila. Their issue includes cost of distribution, delays on reaching their customers in all areas particularly in NCR which has issues in narrow streets, truck utilization, issues in their number of trucks. With the current demand the company is even considering to enter the Visayas, Mindanao market and they want to make sure that in entering the new market they will not be having the same issue encountered. Considering these issues being encountered and the plan for expansion the company want this distribution nightmare be resolve immediately.  The top management decided to get an expert in distribution as their consultant, and one day they called you to help them address all the issues they have. The company only had the following: TRUCKS AVAILABLE UNIT CAPACITY 16 wheeler 4 50k boxes 10 wheeler 4 30k boxes Small Truck 20 100 boxes   Daily demand is 1M boxes all over Luzon Market. As their new consultant how are you going to address all of these concern: Cost of Distribution. Delays on reaching their customers in all areas particularly in NCR which has issues in narrow streets. Truck utilization.  Issues on the number of available trucks. Entering Visayas and Mindanao market without having the same issue encountered.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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CASE SCENARIO:

An alcohol Manufacturing Company from Luzon is having a tough issue in their distributions, in 3 different location North Luzon, Central Luzon, South Luzon and NCR. Their product are pack in boxes with 24 bottle per boxes, and all of this product are is coming from their main distribution center in Manila. Their issue includes cost of distribution, delays on reaching their customers in all areas particularly in NCR which has issues in narrow streets, truck utilization, issues in their number of trucks. With the current demand the company is even considering to enter the Visayas, Mindanao market and they want to make sure that in entering the new market they will not be having the same issue encountered.

Considering these issues being encountered and the plan for expansion the company want this distribution nightmare be resolve immediately.  The top management decided to get an expert in distribution as their consultant, and one day they called you to help them address all the issues they have.

The company only had the following:

TRUCKS

AVAILABLE UNIT

CAPACITY

16 wheeler

4

50k boxes

10 wheeler

4

30k boxes

Small Truck

20

100 boxes

 

Daily demand is 1M boxes all over Luzon Market.

As their new consultant how are you going to address all of these concern:

  1. Cost of Distribution.
  2. Delays on reaching their customers in all areas particularly in NCR which has issues in narrow streets.
  3. Truck utilization.
  4.  Issues on the number of available trucks.

Entering Visayas and Mindanao market without having the same issue encountered.

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