Supply Chain Logistics Management (4th Edition) View more editions Solutions for Chapter C5
[2023-07-11 01:29:25]
What is the total distribution cost of W - G - P Chemical Company? What is the cost per pound, 1 cubic foot, case, line and order? How can these measures help to distribute the review process?
The data in Table 4 contains an average of $ 90 million inventory. Applying 18% of ownership cost, annual inventory cost will be $ 16.2 million. In addition to the remaining costs in Table 4, the total distribution cost is $ 33.2 million, slightly above 3% of sales.
It is worth noting that the total transportation cost of the system is $ 9.1 million. Therefore, the inventory shipping cost of the W - G - P system is much higher than the transportation cost and accounts for almost half of the total W - G - P distribution cost. (Generally, the US transportation costs account for more than half of the total distribution cost).
You can also calculate the unit price for each function. For example, shipping costs to customers are $ 5.6 million / $ 19,919 or $ 292.60 per order. The storage cost is $ 3,100,000 / 2,912,753 boxes, or $ 1.06 per case. The same calculation can be done with other functions
To be most useful, these indicators should be compared with historical achievements and / or industry benchmarks. Although this data is not available in the case itself, you can use an unusually high inventory holding cost as an example. This may also indicate that there is a possibility that the storage cost of the W - G - P may increase due to the large inventory.
First of all, if you use block chain ledgers to store logistics data (and other necessary data) there may be systems that can not be edited, and therefore more responsible. Companies that register with chain solutions are most likely to operate in the most sincere way, so how can we eliminate counterfeit goods and damaged products? Tamper Protection RFID tag is a solution that enables consumer brands to attach RFID tags coded in each product, box, or tray that goes through the supply chain. If the product has been tampered during the supply process, you should have an opportunity to understand where it can happen.
Traditional SCM solutions are created for each existing supply chain activity such as production planning, product lifecycle management, supply chain planning, procurement, logistics, transport management, order management, manufacturing and maintenance management. No part of the supply chain ecosystem is affected. Traditional supply chain solutions have solved the early challenges of the global prosperous world economy, but it has finally reached the limit. There is not much manual work, the possibility of mistakes is high, and goods and information can not easily pass from one part of the supply chain to the next part. Inventory visibility and transport management throughout the supply chain are limited by unconsolidated systems. Organizations need to better understand the real-time view of the entire supply chain.
Supply chain experts need knowledge on the management of supply chain functions such as transportation, warehouse storage, inventory control, production planning. Until now, supply chain experts emphasized logistics skills such as knowledge of transport routes, familiarity with warehouse facilities and distribution center locations and footprint areas, and firm understanding of freight and fuel costs. Recently, supply chain management has expanded to logistics support across enterprises and global supply chain management. Supply chain experts need to understand the basics and strategies of business continuity.