Logistics
realteacher13
section_iv_edited.xlsDistribution from East Coast
| ABC Manufacturing Company | |||||
| Capacity of truck at full load in cubic feet | 4,000 | ||||
| Cooler volume in cubic feet | 2 | ||||
| Number of coolers that fill a truck | 2000 | ||||
| Full truck load | Half truck load | ||||
| Units a truck can deliver per trip | 2,000 | Units each truck delivers per trip | 1,000 | ||
| Freight charged on customer per truck | $400 | Freight charged to customer per trip of half load | $200 | ||
| Truck transport expenses | $1,000 | Truck transport expenses | $1,000 | ||
| Distribution cost to firm | |||||
| full truck | $600 | Half truck load | $800 | ||
| Units purchased weekly | 10,000 | Units purchased weekly | 10,000 | ||
| transported per freight | 2,000 | transported per freight | 1000 | ||
| Number of trips made | 5 | Number of trips made | 10 | ||
| Total distribution cost per week | |||||
| Total cost for transport | $3,000 | Total cost for transport | $8,000 |
For the weekly supply of 10,000 units to the West Coast, we need a full truck to go five trips
For the weekly supply of 10,000 units, we need ten trips to the West Coast
Manufacturing from the West coa
| Building a manufacturing factory & W/H at the West Coast | |||||
| Space per truck | 4000 | ||||
| Cooler unit size | 2 | ||||
| total cooler unit capacity | 2000 | ||||
| Truck volume (cubic feet) | 4,000 | ||||
| 1ft: gallons ratio | 7.48 | ||||
| Total gallons of C in 1 truck | 29920 | ||||
| Cost of transporting C | 0.6 | ||||
| Total C carried in 1 truck | 29,920 | ||||
| cost of transporting C | $17,952.00 | ||||
| Relief charged for transporting C per truck | $ 200.00 | ||||
| $17,752.00 | |||||
| Normal transport cost per truck | $ 1,000.00 | ||||
| Total transport cost | $16,752.00 |
The total truck capacity for raw material C in gallongs can be acquired by converting raw material C volume from gallons to cubit feet; using a ratio of 7.48 gal = 1 ft cubic, we get 29,920 gallons
According totheinformation provided in part II, the cost of transporting raw material C per gallon is increased by an additional cost of $0.60
West coast distribution
| Establishing a Warehouse for supplying the West Coast with finished products | |||||
| Space per truck | 4000 | ||||
| Cooler unit size | 2 | ||||
| total cooler unit capacity | 2000 | ||||
| Units purchased weekly | 10,000 | ||||
| Units transported per freight | 2,000 | ||||
| 5 | |||||
| Units delivered per trip | 2,000 | ||||
| Charged to customer as freight cost per trip | $400 | ||||
| Truck expenses | $1,000 | Total transport | $5,000 | ||
| Spent on transport | $600 | ||||
| Relief totals for all trips | $2,000 | ||||
| Total spent on transport | $3,000 |
Distribution of finished products would be more efficient if done using full truck capacity transport to fill a warehouse, which can in turn be used to supply and store products through the western Coast in anticipation of demand
Recommedation
Since transporting 29,920 gallons of raw material C is considerably expensive due to the fact that there are two more raw materials and each requires an additional expense, and due to the fact that the production facility to be established in the West coast is not ascertained of receiveing a good market share for its finished products, the establishment of a factory would not be suitable.
The finanial review of distributing products from the east coast is not suitable as well since the firm can only transport half loads of trucks heading out to the west coast; the buying distributor can only purchase a 1000 units at a go, making the venture expensive and inefficiant. This reflects a total spending of about $800 per trip.
It is advisable to set up a ware house and distribution within the West coast.
