M/s Excellent Dashboard Private LTD. (EDPL) is situated at Gurgaon near Delhi. The company supplies dashboard...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
M/s Excellent Dashboard Private LTD. (EDPL) is situated at Gurgaon near Delhi. The company supplies dashboard assembly as a 4PL supplier to Maruti Udyog LTD (MUL) since past 3 years. There are number of components in the dashboard like speedometer, level gauge, etc. EDPL purchase these individual components from various suppliers and assembles them at their works for onward supply to MUL. One of the major components namely "Starter Switch" is always the problem. Since the EDPL does not observe any Systematic Inventory Control methods in their purchasing activities, they just order the quantity as and when the demand arises. As this product is not available off the shelf, many a times delays occur in arranging for assembled to MUL. This in turn, results into a financial loss to EDPL due to penalties imposed by MUL as per the agreement, towards delays in supply of dashboard assembly. The information gathered from EDPL shows that the annual demand of the item, Starter Switch is 5000 nos. The unit price of the item is Rs.50 each. The inventory carrying cost and ordering cost is 20% and Rs. 40 per order respectively. a) Explain the role of fourth party Logistics in the above case. b) How EDPL can avoid financial penalties imposed by MUL? c) Calculate Economic Order Quantity (EOQ) for the item under reference, by using the available information. M/s Excellent Dashboard Private LTD. (EDPL) is situated at Gurgaon near Delhi. The company supplies dashboard assembly as a 4PL supplier to Maruti Udyog LTD (MUL) since past 3 years. There are number of components in the dashboard like speedometer, level gauge, etc. EDPL purchase these individual components from various suppliers and assembles them at their works for onward supply to MUL. One of the major components namely "Starter Switch" is always the problem. Since the EDPL does not observe any Systematic Inventory Control methods in their purchasing activities, they just order the quantity as and when the demand arises. As this product is not available off the shelf, many a times delays occur in arranging for assembled to MUL. This in turn, results into a financial loss to EDPL due to penalties imposed by MUL as per the agreement, towards delays in supply of dashboard assembly. The information gathered from EDPL shows that the annual demand of the item, Starter Switch is 5000 nos. The unit price of the item is Rs.50 each. The inventory carrying cost and ordering cost is 20% and Rs. 40 per order respectively. a) Explain the role of fourth party Logistics in the above case. b) How EDPL can avoid financial penalties imposed by MUL? c) Calculate Economic Order Quantity (EOQ) for the item under reference, by using the available information.
Expert Answer:
Answer rating: 100% (QA)
A 4PL is a fourth logistics provider and it essentially takes thirdparty logistics a step further by managing resources technology infrastructure and even manage external 3PLs to design build and prov... View the full answer
Related Book For
Mergers, Acquisitions, and Other Restructuring Activities An Integrated Approach to Process, Tools,
ISBN: 978-0123854858
6th Edition
Authors: Donald m. depamphilis
Posted Date:
Students also viewed these arts questions
-
There are a number of ways Ecuadoran growers might increase demand for their cut roses. Among these are (a) To try to get more consumers to move up-market by buying premium roses, (b) To promote more...
-
There are a number of factors that an auditor may consider when identifying opportunities to commit fraud. The following represent areas that have often been associated with frauds. Situations often...
-
There are a number of conserved sequences found in an mRNA which dictate where splicing occurs. Where are these sequences found relative to the exon/intron junctions? What is the significance of...
-
You are looking at buying a piece of real estate and you intend to borrow as much as you possibly can from a bank to buy the property. The bank you are dealing with has a requirement that the LVR for...
-
Can a taxpayer deduct a reserve for unpaid interest on a loan if the interest appears not to be collectible? Explain. How does the treatment of unpaid interest compare with the treatment of the loan...
-
What should be included in a thank-you note after an interview?
-
Air at \(V_{1}=800 \mathrm{~m} / \mathrm{s}, p_{1}=100 \mathrm{kPa}\), and \(T_{1}=300 \mathrm{~K}\) passes through a normal shock. Calculate the velocity \(V_{2}\), temperature \(T_{2}\), and...
-
The All Cuts Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $3,900 per month. The other barbers are paid $1,900 per month. In addition, each barber...
-
17. (30 Points) Suppose the following instructions are found at the given locations in memory: 20 LDA 60 560 21 ADD 61 22 OUT 23 COB 60 DAT 25 61 DAT 6 161 902 Show the contents of IR, PC, MAR, IOR,...
-
Hoban worked for Texas Tech as a First Responder Coordinator. She was responsible for training and quality assurance for those responding to nonmedical emergencies, establishing medical protocols for...
-
A local business is concerned about it's operation. In an attempt to increase productivity they have invested money in the business. You have been hired as an operations analyst to report to the...
-
Bellini plc is a Stock Exchange listed business. The directors are contemplating the idea as the business purchasing some of its own shares in the market, and cancelling them, as an alternative to...
-
A graph of the daily price of a share looks similar to that which would be obtained by plotting a series of cumulative random numbers. This shows clearly that share prices move randomly at the whim...
-
Recently, equity returns have been lower than the returns available from short-term government securities. Clearly, in such a period, the capital asset pricing model doesnt work because equity...
-
Given only the original problem parameters, would you recommend upgrading to either RAID 0 or RAID 1 assuming individual disk parameters remain the same in the previous table? For disks in the table...
-
Supertraders Ltd is experiencing severe liquidity problems, which you, as a business consultant, have been asked to investigate. You have identified the problem as being caused principally by a very...
-
What are the basic activities involved in the management process? Please explain. Describe the different types of managers and their roles within organizations. How is this related to their...
-
Consider the discrete group G of order 8 that has the following Cayley diagram e If we have the sequence of operations: fcagec, which of the options represents the reduction of the sequence to a...
-
1. How does the post-closing holding company structure protect the interests of the financial sponsor group, creditors, and the utilitys customers, employees, and other stakeholder groups? 2. What...
-
Photon Inc. is considering acquiring one of its competitors. Photons management wants to buy a firm it believes is most undervalued. The firms three major competitors, AJAX, BABO, and COMET, have...
-
Since 2001, GE, the worlds largest conglomerate, had been underperforming the S&P 500 stock index. In late 2008, the firm announced that it was considering spinning off its consumer and industrial...
-
Entrepreneur magazine ranks franchises. Among the factors that the magazine uses in its rankings are growth rate, number of locations, start-up costs, and financial stability. A recent ranking listed...
-
The following 20 observations are for two quantitative variables, x and y. a. Create a scatter chart for these 20 observations. b. Fit a linear trendline to the 20 observations. What can you say...
-
Blatt Consulting Services is interested in comparing the number of customer accounts managed by its consultants. The chart below is a default chart produced in Excel. a. Which preattentive attributes...
Study smarter with the SolutionInn App