Inventory Management & Control (CA-SCIMC) Assignment # 2

Assignment # 2

Value: 25% of final grade Due Date: Day 4

Assignment Instructions Review Case 9.2 on page 354 of the Supply Chain Management textbook. Respond to the case study questions on page 354 of the textbook.

Requirements for the assignment report

Cover page stating assignment title, instructor's name, course and section, student's first and last name, student number and date. Answers to all five questions in report style. No point form. Write in complete sentences. Use subheadings (do not rewrite each question and then write the response). MLA format including in-text citations and a works cited page Page numbers

Written Report Marking Rubric

CRITERIA MARK

Cover page includes assignment title, instructor's 2 name, course and section, student's first and last name, student number and date Response to 1. 8 Response to 2. 7

Response to 3. 7

Response to 4. 7

Response to 5. 7

Valid research from reliable sources 4

MLA style, correct format and structure followed 4

Correct spelling / proper grammar 4

TOTAL POSSIBLE MARKS 50 marks = 25% of final grade Submitting Your Written Assignment:

354 Chaplet 9 CASE 9.2 Baseball Card Emporium Baseball Card Emporium (BBE) of Lewistown, Pennsylvania, is a distributor of baseball cards to sports card retailers. Its market area encompasses most of Pennsylvania, eastern Ohio, and New Jersey. The cards are printed in Neenah, Wisconsin, and currently shipped to Lewistown via motor carrier transportation. Kenny Craig, vice president of logistics, has asked his staff to evaluate using,r air carrier service to ship the cards. Nick Gingher, director of distribution, has collected the following information: - Annual demand: 6,000 cases of cards 0 Case value (price): $96 each - Inventory carrying cost (annual): 30% . Cost per order to replenish inventory: $75 0 ln-transit inventory carrying cost: 18% - Transit time using motor carrier (parcel ground): 4 days . Cycle time using motor carrier (parcel ground): 7 days - Transit time using air carrier: 1 day - Cycle time using air carrier:2 days 0 Motor carrier rate: $1.20 per cwt. (100 lbs.) . Air carrier rate: $2.50 per cwt. . Unit weight: 50 lbs. per case CASE QUESTIONS 1. What is the economic order quantity for BBE in units? In pounds? 2. What is the total cost (not considering transportation-related costs) of the EOQ? 3. What is the total cost for using motor carrier transportation? 4. What is the total cost for using air carrier transportation? 5. Which alternative should BBE use