Bundle: Contemporary Marketing, Loose-Leaf Version, 17th + LMS Integrated MindTapV2.0 Contemporary Marketing, 1 term (6 months) Printed Access Card
17th Edition
ISBN: 9781337493819
Author: BOONE, Louis E., Kurtz, David L.
Publisher: Cengage Learning
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Chapter 14, Problem 9ALR
Summary Introduction
To discuss: The two categories of costs impact the choice of how many storage facilities a firm may have and the place they are located.
An amount that is spent or paid to get something is known as cost.
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Identify a product and explain factors that might influence warehouse design considerations for that product AND explain how your product’s characteristics influence warehouse operations?
The Bright Company wants to figure out the best way to ship their new product,
Flying Widgets, from their factories through their warehouses to their retail outlets.
They would like to set up a Transhipment table so they can use POM to find the least
cost shipping routes. They have hired you to set up the Transhipment table based on
the information below. You will be paid handsomely if you can come up with the
correct table.
Shipping Costs
Shipping Costs
01
02
03
04
Wi
W2
W3
W1
4.
2
F1
4
W2
4
F2
4
2
W3
4.
3.
4.
Also, Flying Widgets can be shipped from Factory 1 to Factory 2 for $3 per unit.
Factory 1 can produce 300 units and factory 2 can produce 100 units.
Outlet 1 demand is 50 units, Outlet 2 is 150 units, Outlet 3 is 100 units, and
Outlet 4 is 100 units.
Warehousing plays an important role in the supply chain or distribution for any goods or products. Illustrate how the location of the warehouse(s) impacts on the effectiveness and efficiency of distribution in a supply chain of your choice.
Chapter 14 Solutions
Bundle: Contemporary Marketing, Loose-Leaf Version, 17th + LMS Integrated MindTapV2.0 Contemporary Marketing, 1 term (6 months) Printed Access Card
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Similar questions
- Explain the importance of warehouses to Garden-Williams Logistics. Explain which type of warehouse Garden-Williams Logistics should make use of. Justify your answer. Identify criteria you believe is important regarding the location of a warehouse and relate it to Garden-Williams Logistics. Determine what type of warehouse activities will be conducted in your chose type of warehouse. Provide an argument indicating whether you will include a warehouse management system.arrow_forwardDr. Wei and Dr. Tusang have a small optometry practice, and they have been in business for over 15 years. They currently store charts in an offsite storage facility and do not have a retention plan or destruction policy. They are considering storing their records electronically. Dr. Wei saw your advertisement in the Journal of Optometry and phoned you for a consultation to discuss their options. What suggestion do you have for the doctors to reduce their off-site storage costs?arrow_forwardWhich of the following is a key consideration in supply chain logistics? The optimization of internal organizational processes The reduction of costs associated with transporting goods and services The coordination of activities among multiple organizations in the supply chain The minimization of inventory holding costsarrow_forward
- Do the desired features of the distribution system vary with the situation?arrow_forwardWhen is the right time and placement for the business to produce or order products as their inventory? Is overstocking of products good for one company? Why?arrow_forwardDetermine the supply chain of an item that can be purchased through the Internet and identify a company that manufactures or retails this item. What revenue model is this company using for e-commerce?arrow_forward
- What is the major advantage of air carriers? How does this advantage impactthe inventory levels of those firms using air transportation? Explain how this advantage relates to the choice of modes when choosing between air carriage and other modes of freight and passengers transport.arrow_forwardWhich type of value-added services a warehouse can provide to Logistics servicesarrow_forwardDelivery of goods from a supplier is in transit for 10 days. If annual demand is 5200 units, what is the average amount of inventory in transit?arrow_forward
- What is supply chain management? How does it differ from logistics? Define and explain the different types of inventory costs that managers must consider in making replenishment decisions. How can these costs be determined in practice?arrow_forwardLarge trucks are an important piece of the logistics chain. However, there were 333,000 large truck crashes in 2012, resulting in almost 3,800 fatalities, the majority being drivers or passengers of other vehicles, not the truck driver. One accident in 2014 caused a public uproar when a Walmart truck driver fell asleep at the wheel after being awake for 24 hours and crashed into another car, killing one person and critically injuring others, one being a well-known comedian. The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration enacted tougher hours-of-service rules that went into effect in July 2013. One report claimed that the industry would lose $1 billion in lost productivity as a result of these rules, while another concluded the industry would realize almost $500 million in benefit from reduced driver mortality. The new rules have caused considerable controversy and have caused hardships for drivers. As one driver put it, “If the wheels aren’t…arrow_forwardOne of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently being assembled at your plant. The supplier has bid $0.10 per part, given a forecast you provided of 200,000 parts in year 1; 300,000 in year 2; and 500,000 in year 3. Shipping and handling of parts from the supplier’s factory is estimated at $0.01 per unit. Additional inventory handling charges should amount to $0.005 per unit. Finally, administrative costs are estimated at $20 per month. Although your plant is able to continue producing the part, the plant would need to invest in another molding machine, which would cost $10,000. Direct materials can be purchased for $0.05 per unit. Direct labor is estimated at $0.03 per unit plus a 50 percent surcharge for benefits; indirect labor is estimated at $0.011 per unit plus 50 percent benefits. Up-front engineering and design costs will amount to $30,000. Finally, management has insisted that overhead be allocated if the parts are made in-house…arrow_forward
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