Quantum manufactures widgets in Johannesburg for distribution throughout South Africa. WP Widgets, a Cape Town based customer receives their orders from Quantum via road transport. Quantum is currently using a 3PL service provider, CTPT, to supply WP Widgets at a rate of 35 cents/widget. The company's director of logistics has asked the logistics manager to evaluate another 3PL service provider, ATransport, for the shipment from Johannesburg to Cape Town. ATransport has quoted a rate of 45 cents/widget, but the transit time is only 2 days. The current transit time is 5 days. Which 3PL service provider would you suggest that Quantum use? The logistics manager has obtained the following information: Annual demand (widgets) Widget value Inventory carrying cost Order cost In-transit inventory carrying cost 30 000 R65 20% R350 12%
Quantum manufactures widgets in Johannesburg for distribution throughout South Africa. WP Widgets, a Cape Town based customer receives their orders from Quantum via road transport. Quantum is currently using a 3PL service provider, CTPT, to supply WP Widgets at a rate of 35 cents/widget. The company's director of logistics has asked the logistics manager to evaluate another 3PL service provider, ATransport, for the shipment from Johannesburg to Cape Town. ATransport has quoted a rate of 45 cents/widget, but the transit time is only 2 days. The current transit time is 5 days. Which 3PL service provider would you suggest that Quantum use? The logistics manager has obtained the following information: Annual demand (widgets) Widget value Inventory carrying cost Order cost In-transit inventory carrying cost 30 000 R65 20% R350 12%
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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Using relevant calculations Which 3PL service provider would you suggest that Quantum use?
![Quantum manufactures widgets in Johannesburg for distribution
throughout South Africa. WP Widgets, a Cape Town based customer
receives their orders from Quantum via road transport. Quantum is
currently using a 3PL service provider, CTPT, to supply WP Widgets
at a rate of 35 cents/widget. The company's director of logistics has
asked the logistics manager to evaluate another 3PL service
provider, ATransport, for the shipment from Johannesburg to Cape
Town. ATransport has quoted a rate of 45 cents/widget, but the
transit time is only 2 days. The current transit time is 5 days.
Which 3PL service provider would you suggest that Quantum use?
The logistics manager has obtained the following information:
Annual demand (widgets)
Widget value
Inventory carrying cost
Order cost
In-transit inventory carrying cost
30 000
R65
20%
R350
12%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5ebd31d-b2a2-4205-af19-c15abddfc92e%2F17efbd93-296f-4be5-b976-26dcbc921fd2%2F3kx0pk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Quantum manufactures widgets in Johannesburg for distribution
throughout South Africa. WP Widgets, a Cape Town based customer
receives their orders from Quantum via road transport. Quantum is
currently using a 3PL service provider, CTPT, to supply WP Widgets
at a rate of 35 cents/widget. The company's director of logistics has
asked the logistics manager to evaluate another 3PL service
provider, ATransport, for the shipment from Johannesburg to Cape
Town. ATransport has quoted a rate of 45 cents/widget, but the
transit time is only 2 days. The current transit time is 5 days.
Which 3PL service provider would you suggest that Quantum use?
The logistics manager has obtained the following information:
Annual demand (widgets)
Widget value
Inventory carrying cost
Order cost
In-transit inventory carrying cost
30 000
R65
20%
R350
12%
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