omat Painter Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Replace Select Dictate Editor board 5 Font Paragraph Styles Editing Voice Editor MGMT3068 Based on the production line expansion plans of the company, the sales department is finalising long term sales contracts which will increase sales to Vancouver, Edmonton, Winnipeg and Montreal The projected changes to the sales volumes are summarized in the following table: - Leaf Men's Wear Edmonton Vancouver 2.585 4 134 Current Sales (Mn) Future Sales (SM) () 1.6 Winniper 1.68 2.52 Montreal 1071 1927 2.352 You are the Logistics Manager of Leaf Meos Wear which is a small manufacturer of various products in Mississauga and produces 30 products that have gained a good success in Canadian and US markets One of Leaf's successful products is an organic herbal soap that is highly demanded in and regularly shipped to Edmonton, Vancouver, Winnipeg. Montreal and Windsor Facing such high market demand, Leaf Mens Wear is considering expanding its sop production line, hut currently will have to distribute its monthly production between these markets. As a result, Leat's shipping schedule is budgeted according to the following table Shipmwnt size Destinations Vancouver Edmonton Winnipeg Montreal Windsor 100 lbs 5 shipments shipments 4 shipments 2 shipments 2 shipments 200 lbs 4 shipments a shipments shipments shipments shipments 500 lbs a shipments shipments 2 shipments shipments shipments 1000 lbs 4 shipments 2 shipments Lal's VP Finance projected that the new sales prices offered to secure the above deals would reduce your allocated annual operation budget by 510,122. This means you will have a tighter budget to manage the transportation of products to these markets Case Questions 1 without considering the changes in production and sales, which one of the transportation 1 companies will you sign contract with for these four markets? 2. How would the new sales affect your shipping plant? 3. How would you adjust your costs to meet the future reduced budget you will have? Leaf Meos Wear has requested quotes from nine trucking companies out of which four have been shortlisted for contract. The following shows the quotes received from the four trucking companies which are all in dollars per cwt Source for Exercise Adopted from Source Michielscodes and Marold E. Franon, Purchasing and Supply Management, eleventh edition. Chicago, Irwin, 1997 407-4.1 with alteration 1000 lbs RAIGNY EXPRESS LTD $2436 $20.81 $20.81 $19.90 $15.74 SIR.72 $15.36 $17.15 $16.43 $15.9 D. Focus 319 words DX English (United States) LO d* ENG 9:24 PM 2020-11-10 19 O Type here to search O omat Painter Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emphasis Replace Select Dictate Editor board 5 Font Paragraph Styles Editing Voice Editor MGMT3068 Based on the production line expansion plans of the company, the sales department is finalising long term sales contracts which will increase sales to Vancouver, Edmonton, Winnipeg and Montreal The projected changes to the sales volumes are summarized in the following table: - Leaf Men's Wear Edmonton Vancouver 2.585 4 134 Current Sales (Mn) Future Sales (SM) () 1.6 Winniper 1.68 2.52 Montreal 1071 1927 2.352 You are the Logistics Manager of Leaf Meos Wear which is a small manufacturer of various products in Mississauga and produces 30 products that have gained a good success in Canadian and US markets One of Leaf's successful products is an organic herbal soap that is highly demanded in and regularly shipped to Edmonton, Vancouver, Winnipeg. Montreal and Windsor Facing such high market demand, Leaf Mens Wear is considering expanding its sop production line, hut currently will have to distribute its monthly production between these markets. As a result, Leat's shipping schedule is budgeted according to the following table Shipmwnt size Destinations Vancouver Edmonton Winnipeg Montreal Windsor 100 lbs 5 shipments shipments 4 shipments 2 shipments 2 shipments 200 lbs 4 shipments a shipments shipments shipments shipments 500 lbs a shipments shipments 2 shipments shipments shipments 1000 lbs 4 shipments 2 shipments Lal's VP Finance projected that the new sales prices offered to secure the above deals would reduce your allocated annual operation budget by 510,122. This means you will have a tighter budget to manage the transportation of products to these markets Case Questions 1 without considering the changes in production and sales, which one of the transportation 1 companies will you sign contract with for these four markets? 2. How would the new sales affect your shipping plant? 3. How would you adjust your costs to meet the future reduced budget you will have? Leaf Meos Wear has requested quotes from nine trucking companies out of which four have been shortlisted for contract. The following shows the quotes received from the four trucking companies which are all in dollars per cwt Source for Exercise Adopted from Source Michielscodes and Marold E. Franon, Purchasing and Supply Management, eleventh edition. Chicago, Irwin, 1997 407-4.1 with alteration 1000 lbs RAIGNY EXPRESS LTD $2436 $20.81 $20.81 $19.90 $15.74 SIR.72 $15.36 $17.15 $16.43 $15.9 D. Focus 319 words DX English (United States) LO d* ENG 9:24 PM 2020-11-10 19 O Type here to search O