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Posted: November 5th, 2020
This is my note on what the teacher said about the assignments : The assignments required pre calculation on excel document, the total logistics cost option should be calculated for all options, diagram, excel document, figures and tables should be provided. Any assumption should be proven and explain. It is also required to look at the inventory cost and design a inventory cycle taking in consideration the lead time. In Inventory cost, look at the safety stock that need to be kept. Also in the inventory cost, take in consideration the products in warehousing and the one in transit + regular cycle, safety and finish good.
Need to talk about the internal cost of capital which is here 10% We need to decide where to place the warehouse based on strategic choices : either postponement or speculation . Decide of adopting a lean/agile strategy Thinking about the different transport mode and characteristics and how they can allow us to meet the customers demand. The cost should not be 90% of the decisions, it is not necessarily an obligation to take the lower cost as long as we explain why. Ex: not taking lowest options as it affect the service options.
Recommendation can be based on meeting the clients demand faster Think about the fact that the factory now send products every second day. Look at rate at which the products leave , how things get in the warehouse, speed of delivery at both points ( factory, warehouse) and then it can be modify or adjust , e.g. quicker replenishment but need to explain it Evaluate the impact of switching to 20 Palettes for customers Bench-marking when calculation : competitors Industry as a whole Can make assumptions but explain why you assume that Design entire distribution strategies Calculating cost USE ANNUAL BASE – cost per years as better for looking at impacts of options and comparison Take the service level 5% in option A apply to the all year = 365 days. Finance homework help
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