++整理版物流思考题

Mike McNeely, logistics manager for the Illumination Light Company, has considered replacing the firm's manual customer order management system with electronic ordering, an EDI application. He estimates the current system, including labor, costs $2.50/order for transmission and processing when annual order volume is under 25,000. Should the order volume equal or exceed 25,000 in any given year, Mr. McNeely will have to hire an additional customer service representative to assist order reception in the manual process. This would raise the variable cost to $3.00/order. He has also estimated the rate of errors in order placement and transfer to be 12/1000 orders.

EDI would cost $100,000 upfront to implement and variable costs are determined to be $0.50/order regardless of volume. EDI could acquire and maintain order information with an error rate of 3/1000 orders. An EDI specialist would be required to maintain the system at all times as well. Her salary is $38,000 in the first year and increases 3 percent each year thereafter.

Order errors cost $5.00 per occurrence on average to correct in the manual system. EDI errors cost $8.00 on average to correct since the specialist inspects the system for flaws on most occasions.

a. If the firm expects order volume over the next 5 years to be 20,000, 22,000, 25,000, 30,000, and 36,000 annually, would EDI pay for itself within the first 5 years?

b. What effects aside from cost might Mr. McNeely consider when implementing EDI?

a.Manual: order cost error cost total cost

1year: 20000x2.5+(12/1000)x20000x5=51200

2year: 22000x2.5+(12/1000)x22000x5=56320

3 year: 25000x3+(12/1000)x25000x5=76500

4 year: 30000x3+(12/1000)x30000x5=91800

5 year: 36000x3+(12/1000)x36000x5=110160

b.EDI: device cost salary error cost order cost total cost 1year: 100000+38000 +20000x(3/1000)x8 +0.5x20000=148480

2year: 38000x(1+3%)+22000x(3/1000)x8 +0.5x22000=50668

3 year: 38000x(1+3%)^2+25000x(3/1000)x8+0.5x25000=53414

4 year: 38000x(1+3%)^3+30000x(3/1000)x8+0.5x30000=57243.6

5 year: 38000x(1+3%)^4+36000x(3/1000)x8+0.5x36000=61633.3

1.Mr. Stan Busfield, distribution center manager for Hogan Kitchenwares, must determine when to resupply his stock of spatulas. The DC experiences a daily demand of 400 spatulas. The average length of the performance cycle for spatulas is 14 days. Mr. Busfield requires that 500 spatulas be retained as safety stock to deal with demand uncertainty.

a. Use simple reorder point logic to determine the order quantity for spatulas.

b. Based on your answer to part (a), find Mr. Busfield’s average inventory level of spatulas.

a. Use the reorder point to find the order quantity:

R = D x T + SS

= 400 x 14 + 500 = 6,100 spatulas reorder point is 6100, Order quantity is more than or equal to 5600. b. The average inventor is one-half the order quantity + safety sock:

If Order quantity is equal to 5600, then

Average inventory = 5600/2+500 = 3,300 spatulas

4. Mr. John Eastes oversees the distribution of Tastee Sancks products from the plant warehouse to its two distribution centers in the United States. The plant warehouse currently has 42,000 units of the company’s most popular product, Chocolate Chewies. Mr. Estes retains 7000 units of the product at the warehouse as a buffer. The Cincinnati DC has an inventory of 12500 units and daily requirements of 2500 units. The Phoenix DC has an inventory of 6000 units and daily requirements of 2000 units.

a. Determin e the common days’ supply of Chocolate Chewies at each DC.

b. Given the above information and your answer to part (a), use fair share allocation logic to determine the number of Chocolate Chewies to be allocated to each DC.

a. Common days’ supply of choc olate chewies:

DS = [(42,000 - 7,000) + 18,500]/4500=11.89 days (around) b. Fair Share Allocation Logic:

Allocation = (Days’ Supply x Daily Requirements) - Inventory

ACincinnati = (11.89 x 2,500) - 12,500 = 17,225 units

APhoenix = (11.89 x 2,000) - 6,000 = 17,780 units Attention : Together, the allocations equal 35,005 units (17,225 + 17,780) which is 5 more than the plant warehouse’s allocation supply. The difference rests with the rounding of the days’ supply figure.