Supply Chain Management Task

COURSE CODE: BBA311 SCM COURSE NAME: Supply Chain Management CLASS CODE: BCN15204

Task

 Individual task  Essay  Questions:

1. You are a company that want to import some mobile phones from China. You want to buy 20.000 units for the Apple phone, 15.000 units for the OPPO one and 25.000 units for the Huawei one. You have received prices from two different sellers that work with different Incoterms. Before you close the deal make sure you understand the total cost of the transaction in order to make the better decision for your company. price propositions for the 3 different brands are as per the attached chart (seller 1 and seller 2). Your warehouse is in Madrid and the plan is sea freight from Shanghai port to the Barcelona port. You want to have the product with an insurance for the shipment. Given all the concepts and its prices available (attached below), please put them in the right order and chose the ones you need in order to define the cost structure for the transaction. Please show me the total cost for the two options so your company can properly decide.

2. In the chart below you will find all the operational issues you have encountered in your warehouse this 2021. Using the pareto analysis, please segment the issues, and define which ones you should take action in order to minimize the money loss. For the ones you have to take action, please define two actions and areas involved that should help you sort the issue out.

Customs imports 1.000 € Shipment from termnial to Madrid 600 € Insurance 1.000.000 € Shipment from factory to terminal 1.200 € Unloading at Madrid warehouse 150 € Loading from terminal to vessel 250 € Loading from factory to picking up truck 200 € Unloading from vessel to terminal 150 € Freight from Shanghai to Barcelona 10.000 € Product price ------

Product €/unit Apple 310 € Oppo 115 € Huawei 220 €

CIF Barcelona

Seller 2 Product €/unit

Apple 300 € Oppo 100 € Huawei 200 €

FAS Shanghai

Seller 1

# Issue Area number of hours

lost due to the issue happening

€ lost for the company due to

the issue 1 wrong quantity prepared Picking 340 3.555 2 Wrong reception and location Goods in 50 575 3 Shipped in the wrong transport company Goods out 60 1.300 4 wrong material prepared Picking 20 200 5 Shipped in the wrong destination Goods out 24 150 6 Invoice error Accounting 30 330 7 wrong label re-work 850 456 8 fork lift truck battery error storage area 2 500 9 Lack of packaging material picking 44 250

10 Trucks not delivering on time Goods in 13 5.530

3. GUSTAV company has got annual sales volume of 400.000units for the last 4 years. The 2021 end stock in the balance sheet is 450.000€ (854.320 units x 0,53€/unit).

 As per the balance sheet below, please calculate Net Working Capital and explain if the company is in a good or bad situation.

 The company want to buy a new warehouse in order to store all the units they have in stock. They want to ask the bank for a loan to return in 5 years.

o Do you think is a good option? Why? o How would it affect the Net Working Capital?

Formalities:

 Wordcount: 1.750  Cover, Table of Contents, References and Appendix are excluded of the total wordcount.  Font: Arial 12,5 pts.  Text alignment: Justified.  The in-text References and the Bibliography have to be in Harvard’s citation style.

Submission: Final Evaluation submission point – Via Moodle (Turnitin). Specific day and hour limit: Sunday 16th January 2022 at 23:59CEST

Weight: This task is a 40% of your total grade for this subject.

Cash 150.000 € Short term debt 180.000 € Stocks 450.000 € Accounts payable 220.000 € Accounts Receivable 50.000 €

Current Assets Current Liabilities