Question: 5 . The information relating to Current and Alternative Transportation will be used to analyze the choice between using Maersk ( Ocean Freight ) and
The information relating to Current and Alternative Transportation will be used to analyze the choice between using Maersk Ocean Freight and UPS AirExpress
a What are the annual transportationrelated costs for each of these options?
bWhat are some other factors andor costssuch as impact to inventory levels, safety stock, and the resulting costs that may be helpful to consider when trying to supportjustify your recommendation?
cBased on your analysis, which option would you recommend, supporting your answer with quantifiable factors where possible.
Based on your recommendations from the previous questions: Forecast, Supplier, and Transportation. Note this may change some of the costs andor lead time
a Determine your EOQ
b Determine your ROP
c What are the expected annual costs for inventory management. The types of costs to be included are annual holding costs, annual ordering costs, and annual purchasing costs.
d What are the primary cost drivers between these results and the results you've determined in question
Discuss the benefits your recommendations provide to Throx as they move forward and the considerations and potential issues with the implementation for each of your recommendations: FY forecast, EOQ &ROP, Supplier, Transportation and Location. What changes or resources would be necessary to implement them, and what decisions might create challenges and require additional leadership attention? Write a few sentences on each recommendation.Overview of the Case Analysis
We have discussed many concepts in SCM related to planning, sourcing, making and delivering
products and services. The purpose of this case analysis is to integrate relevant elements of the course
and to apply tools you have learned to help evaluate supply chain performance.
Consider yourself a summer intern and your assignment is to put what you learned in SCM to good
use helping the Throx company evaluate its current supply chain practices. You are tasked with
evaluating the company's recent performance and making decisions and recommending changes to
improve supply chain performance. The questions that you are required to answer are included in the
second half of this document.
Company Background Information
Throx sells higherend customdesign socks in threesock sets rather than the customary two sets
The company operates from a small packaging and distribution facility in Richmond, CA from which it
ships product to customers. Given the company's location and focus, of sales are in California,
primarily in the major urban areas of the San Francisco bay area, Los Angeles, Sacramento, and last but
not least San Diego. The company sells exclusively via online sales, at an average price of $ three
sock set, plus shipping costs charged to the customer.
The company currently orders its product from the Chinese sock manufacturer Zhejiang Datang Hosiery
Group Co Ltd in socalled "Sock City." Socks are transported from the factory via truck to the port of
Shanghai, from where they are shipped to the port at LALong Beach via ocean freight. Once offloaded
at the port of LALong Beach, the socks are then shipped via truck to the Richmond facility. On average,
shipping time from the manufacturer to the Richmond facility takes weeks. In addition to the transit
time required for shipment, the lead time from when an order is placed with the manufacturer to when
it is shipped from Zhejiang is weeks. So the total lead time is considered to be weeks from when
Throx places an order until it reaches the Richmond facility. Historically, the standard deviation of total
lead time has been weeks.Overview of the Case Analysis
We have discussed many concepts in SCM related to planning, sourcing, making and delivering
products and services. The purpose of this case analysis is to integrate relevant elements of the course
and to apply tools you have learned to help evaluate supply chain performance.
Consider yourself a summer intern and your assignment is to put what you learned in SCM to good
use helping the Throx company evaluate its current supply chain practices. You are tasked with
evaluating the company's recent performance and making decisions and recommending changes to
improve supply chain performance. The questions that you are required to answer are included in the
second half of this document.
Company Background Information
Throx sells higherend customdesign socks in threesock sets rather than the customary two sets
The company operates from a small packaging and distribution facility in Richmond, CA from which it
ships product to customers. Given the company's location and focus, of sales are in California,
primarily in the major urban areas of the San Francisco bay area, Los Angeles, Sacramento, and last but
not least San Diego. The company sells e
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