Question: Hi there, could you please answer following questions? Graded Assignment 3: Last-mile Distribution at Eight12 Eight12 is a large chain of convenience stores, with a

 Hi there, could you please answer following questions? Graded Assignment 3:Last-mile Distribution at Eight12 Eight12 is a large chain of convenience stores,

Hi there, could you please answer following questions?

with a number of outlets throughout Europe. The stores are conveniently locatedat street corners or other busy parts of urban centers and carrya limited selection of everyday items such as fruits, bread and pastries,snacks, tobacco products and magazines. The last mile distribution network for EightiZ'sstores in Berlin, Germany, is designed like many other last mile distributionnetworks.Just outside the city, EightiZ has a distribution center (DC). From this

Graded Assignment 3: Last-mile Distribution at Eight12 Eight12 is a large chain of convenience stores, with a number of outlets throughout Europe. The stores are conveniently located at street corners or other busy parts of urban centers and carry a limited selection of everyday items such as fruits, bread and pastries, snacks, tobacco products and magazines. The last mile distribution network for EightiZ's stores in Berlin, Germany, is designed like many other last mile distribution networks.Just outside the city, EightiZ has a distribution center (DC). From this DC, a large fleet of company-owned and operated trucks supply the stores in and around Berlin. Most stores are replenished daily from the DC. Recently, Eighti 2 decided to completely redesign their last mile distribution network in Berlin. The company's idea was to completely rethink their whole network design, including how many stocking points and cross-docking points to have in the city, as well as how many vehicles, and of which type, to operate within the network. The supply chain analytics team at Eightl 2 was given the task of coming up with alternative designs for this revised network. After six months of meetings, discussions, number crunching, and a well-received off-site conference at a ski resort in the Swiss mountains, the team has decided to propose two alternative designs to the VP of Supply Chain, as follows: - Alternative 1 is a mobile multi-tier network. With this design, Eight12 will need to invest in mobile stocking points, as well as smaller electric distribution vehicles. The mobile stocking points are basically large trucks that will act as temporary stocking locations from which the smaller distribution vehicles distribute to each store. This solution will provide a lot of flexibility and reduce fuel costs for Eighti 2. However, this design is conceptually and operationally very different from the current distribution network. - Alternative 2 is a more traditional network. This alternative consists of updating the fleet of trucks and retaining the current DC. The company would invest heavily in the current DC, in order to make it efficient and capable of supporting future growth. Both alternatives are assumed to pay back within 2 years. The alternatives are mutually exclusive. Part 1 0.0/0.6 points (graded) The aggregated cash flows, in dollars, for each of the two alternatives are given in the table below. Relative Cash Flows compared to current operations for year 0 and the first two yea rs Year 0 Year 2 Year 1 Alternative 1 949080 +4314OO +862800 Alternative 2 -1 0051 62 +862800 +431400 Eight12 is currently using a discount rate of 10% to evaluate all proposed projects. What is the payback period for each of the two alternatives? Payback period for Alternative 1: Provide your answer in years, with two decimals. Payback period for Alternative 2: Provide your answer in years, with two decimals. Part 2 0.0/0.6 points (graded) What is the internal rate of return (IRR) for each of the two alternatives? IRR for Alternative 1 Provide your answer as a percentage, with two decimals, but without the percentage symbol. For example, if your answer is 12.34%, then type 12.34 in the answer space. IRR for Alternative 2 Provide your answer as a percentage, with two decimals, but without the percentage symbol. For example, if your answer is 12.34%, then type 12.34 in the answer space. Submit You have used 0 of 2 attempts Save Part 3 0.0/0.6 points (graded) What is the net present value (NPV) for each of the two alternatives? Remember that Eightl 2 is currently using a discount rate of 10% to evaluate all proposed projects. NPV for Alternative 1 Provide your answer in dollars, without currency symbols. For example, if your answer is $12.34, type 12.34 in the answer space. NPV for Alternative 2 Provide your answer in dollars, without currency symbols. For example, if your answer is $12.34, type 12.34 in the answer space. Submit You have used 0 of 2 attempts Save Part 4 0.0/0.6 points (graded) Considering your results from Parts 1 through 3, which alternative would maximize value? Select the best answer 0 Alternative 1 0 Alternative 2 At what discount rate would both alternatives have the same NPV? In other words, what would the discount rate have to be in order for the answer to the question above to be different. Provide your answer as a percentage, rounded to the nearest decimal, without using the percentage symbol. For example, if your answer is 12.34%, then type 12.3. Submit You have used 0 of2 attempts Save Part5 0.0/0.6 points (graded) If the discount rate was 25%, what alternative should the firm choose? Select the best answer 0 Alternative 1 0 Alternative 2 0 Neither Submit You have used 0 of1 attempt Save

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