Operations Management
Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 15, Problem 21DRQ
Summary Introduction

To determine: Benefits of cross-docking.

Introduction: Cross-Docking is a logistics process where goods from the manufacturer and suppliers are distributed directly to the consumers or retain chain with marginal to not handling or storage duration.

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PP.63 Jupiter, a large candy company, is having great success with its "Swan" family of candy bars.  Due to a number of factors they like to plan their production at least six months into the future.  The table below contains their demand projections (in tons) for April through September: Supply/Demand Info   Beginning        Apr           May           Jun           Jul           Aug           Sep      Predicted Sales   45,500 45,100 51,900 52,800 47,900 47,200 Regular production               Overtime production               Subcontract production                      Ending inventory 14,400             Hired employees               Fired employees               Total employees 423             Cost variables are as follows: Cost Variables                           Labor cost/hour $13 Overtime cost/ton $30 Subcontracting cost/ton    $28 Holding cost/ton/month    $14 Hiring cost/employee $3,700 Firing cost/employee $5,800 Here is some additional…
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Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY