Using the current exchange rate, what is the INITIAL PURCHASE COST PER

UNIT $($in US Dollars$)$ paid to Dong Hai Supply? $($Do not include transportation

costs$).$

Q$2$: What is the AVERAGE TIME for an order filling a TEU container to come from

Dong Hai Supply in Chengdu, China to SL$$s Alliance Fort Worth Distribution

Center? From CousinsAg in Wahoo, Nebraska to SL$$s Alliance Fort Worth

Distribution Center?

Q$3$: Using the current exchange rate, what is the COST $($in US Dollars$)$ to ship a TEU

container from Dong Hai Supply in Chengdu, China to SL$$s Alliance Fort Worth

Distribution Center?

Final Case Study SCM $475$

Q$4$: What is the ECONOMIC ORDER QUANTITY $($use unit price only; do not

include transportation costs$)$ if we purchase everything from CousinsAg? From

Dong Hai

Supply?

Q$5$: How many units of SAFETY STOCK will we need to hold if we purchase

everything from Dong Hai Supply? From CousinsAg?

Q$6$: Inventory Carry cost are based on the value of the product at the time it is held in

inventory. What is the IN$-$TRANSIT CARRYING COST PER UNIT $($in dollars

and cents$)$ if we purchase everything from Dong Gai Supply? From CousinsAg?

Q$7$: What AVERAGE INVENTORY LEVEL $($in units$)$ will we hold at the SL$$s

Alliance Fort Worth Distribution Center if we purchase everything from Dong Hai

Supply? $($Be sure to consider both safety stock and cycle stock$)$ From CousinsAg?

Q$8$: Inventory Carrying Costs are based on the value of the product at the time it is held

in inventory. When the product is sitting in the SL Alliance Fort Worth

Distribution Center, its value is a combination of purchase price plus any

transportation costs to get it from the supplier to the DC plus in$-$transit carrying

costs. What is the TOTAL ANNUAL INVENTORY CARRYING COST $($in

dollars$)$ for the safety stock and cycle stock inventory held at the Alliance Fort

Worth Distribution Center if we purchase everything from Dong Hai Supply?

From CousinsAg?

Q$9$: Inventory Carrying Costs are based on the value of the product at the time it is held

in inventory. When the product is sitting at SL$$s Alliance Fort Worth Distribution

Center, its value is a combination of purchase price plus any transportation costs to

get it from the supplier to the DC plus in$-$transit carrying costs. ON A PER$-$UNIT

BASIS $($in dollars$)$ what is the total inventory carrying cost for the safety stock and

cycle stock inventory held at SL$$s Alliance Fort Worth Distribution Center if we

purchase everything from Dong Hai Supply? From CousinsAg?

Q$10$: Let$$s put it all together to determine the total cost per unit. We have determined

the unit price, the transportation costs, and the SL Alliance Fort Worth

Distribution Center$$s inventory carrying cost. If we also consider the Annual

Ordering Cost, what is the TOTAL COST PER UNIT $($in dollars$)$ if we purchase

everything from Dong Hai Supply? From CousinsAg?

Q$11$: After you incorporate all the risk costs, which supplier is the LEAST TOTAL

COST PROVIDER of Zizigooloo?

Final Case Study SCM $475$

Q$12$: There are additional risks which must be considered to better evaluate IDC$$s

decision for the two supply chain choices $$ CousinAg, and Dong Hai Supply.

$1.$ Identify two additional risks which should be considered, and

$2.$ Provide at least two realistic quantitative measures for each risk that you would

use to evaluate that risk

Q$13$: Recommend improvements to the supply chain process to reduce total landed cost.