You are in charge of inbound transportation for your company for all products coming into your...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are in charge of inbound transportation for your company for all products coming into your country from overseas. You use a single ocean carrier, ABC Carriers, and their historical time for transit has been 4 weeks on average with a standard deviation of 1 week. All of your product comes in containers and you have estimated that the value of the product in a container is about $100,000. Your weekly demand, in containers, is about 32 with a standard deviation of 12. Assume a CSL of 95% and a holding charge of 22% per year. Part 1 0.0/2.0 points (graded) Using ABC Carriers, answer the following questions. What is your annual expected cost of pipeline inventory? Enter your answer in millions of dollars with 2 decimal places. What is your expected annual cost of safety stock? Enter your answer in millions of dollars with 2 decimal places. Part 2 0.0/2.0 points (graded) Due to fuel costs, ABC Carriers has implemented what is known as slow steaming. They plan to slow their vessels down considerably in order to reduce their fuel consumption. For example, slowing down from 24 knots to 18 knots can cut fuel consumption in half! Your lane now has an average transit time of 5 weeks but the standard deviation has been reduced to 0.5 weeks. What is your new annual expected cost of pipeline inventory under Slow Steaming? Enter your answer in millions of dollars with 2 decimal places. What is your new expected annual cost of safety stock under Slow Steaming? Enter your answer in millions of dollars with 2 decimal places. Submit You have used 0 of 2 attempts Save Part 3 0.0/1.0 point (graded) Obviously, this new policy by ABC Carriers will increase your inventory costs. How much of a discount per container should you ask ABC Carriers for in order to counter this increase? Round your answer UP to the nearest integer dollar value. Submit You have used 0 of 2 attempts Save You are in charge of inbound transportation for your company for all products coming into your country from overseas. You use a single ocean carrier, ABC Carriers, and their historical time for transit has been 4 weeks on average with a standard deviation of 1 week. All of your product comes in containers and you have estimated that the value of the product in a container is about $100,000. Your weekly demand, in containers, is about 32 with a standard deviation of 12. Assume a CSL of 95% and a holding charge of 22% per year. Part 1 0.0/2.0 points (graded) Using ABC Carriers, answer the following questions. What is your annual expected cost of pipeline inventory? Enter your answer in millions of dollars with 2 decimal places. What is your expected annual cost of safety stock? Enter your answer in millions of dollars with 2 decimal places. Part 2 0.0/2.0 points (graded) Due to fuel costs, ABC Carriers has implemented what is known as slow steaming. They plan to slow their vessels down considerably in order to reduce their fuel consumption. For example, slowing down from 24 knots to 18 knots can cut fuel consumption in half! Your lane now has an average transit time of 5 weeks but the standard deviation has been reduced to 0.5 weeks. What is your new annual expected cost of pipeline inventory under Slow Steaming? Enter your answer in millions of dollars with 2 decimal places. What is your new expected annual cost of safety stock under Slow Steaming? Enter your answer in millions of dollars with 2 decimal places. Submit You have used 0 of 2 attempts Save Part 3 0.0/1.0 point (graded) Obviously, this new policy by ABC Carriers will increase your inventory costs. How much of a discount per container should you ask ABC Carriers for in order to counter this increase? Round your answer UP to the nearest integer dollar value. Submit You have used 0 of 2 attempts Save
Expert Answer:
Answer rating: 100% (QA)
1 Calculate the annual expected cost of pipeline inventory and the expected annual cost of safety stock we need to use the following formulas Where Lead Time Demand Weekly Demand Lead Time in weeks Sa... View the full answer
Related Book For
Global Marketing management
ISBN: 978-0470505748
5th edition
Authors: Masaaki Kotabe, Kristiaan Helsen
Posted Date:
Students also viewed these general management questions
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
You are in charge of inventory control of a highly successful product retailed by your firm. Weekly demand for this item varies, with an average of 200 units and a standard deviation of 16 units. It...
-
Assume that 3-month Treasury bills totaling $23 billion were sold in $10,000 denominations at a discount rate of 5.200%. In addition, the Treasury Department sold 6-month bills totaling $21 billion...
-
Is the installment-sales method of recognizing revenue generally acceptable? Why or why not?
-
Consider your favourite teacher. What supportive (people-oriented) and directive (task-oriented) leadership behaviours did he or she use effectively? In general, do you think students prefer an...
-
The manufacturer of an electric table saw claims that it has a 3.0 horsepower motor. 1 horsepower is approximately \(750 \mathrm{~W}\). It is designed to be used on a normal \(120 \mathrm{~V}\)...
-
The following data apply to Hill's Hiking Equipment: Value of operations ........ $20,000 Short-term investments ...... $ 1,000 Debt ................ $ 6,000 Number of Shares........ 300 The company...
-
Below is estimated model of market values of houses Market Values-47331.38-825.161 House Age +40.91107 Square Feet a. Refer to the estimated model. Are the impacts of "House Age" and "Square Feet"...
-
For the network of Fig. 7.86, determine: a. VGSQ and IDQ b. VDS, VD, VC and VS. 12 V 22 kQ Gso 1 1.6 k FIG. 7.86
-
Based on the companies’ market-to-book ratios, which company is doing better overall? What other ratios or financial information can help you justify its better market-value performance? A)...
-
How to find accounts payable from a statement of stockholder's equity and income statement?
-
A corporation issues a $600,000, 9%, 20-year mortgage note. The terms provide for annual installment payments of $65,728. What is the remaining unpaid principal balance of the mortgage payable...
-
1) Let X be a continuous random variable. f(x) = [2e-k 2e-kx x 0 x < 0 a) For what value of k is f a probability density function? b) Find P(1 < x < 5) using the same k value you found it in part a....
-
Why employee salaries are not a good allocation base for allocating overhead costs in survey masters LLC? Take into consideration the distinctive business nature of the company and provide a list of...
-
A taxpayer tells their tax preparer they only earned employment income in the year. The preparer reports the employment income as the only source of income when completing the tax return. However,...
-
How might such changes in buyer behavior affect the channel design decisions of the major pharmaceutical producers? Explain in terms of the relevant stages of the channel design paradigm.
-
Kims Konstructions has assembled the following data for a proposed straw-reinforced brick maker (SRBM): SRBM Cost: $26,000 Life: 5 years Revenue (p.a.) $11,000 Operating Expenses (p.a.) $3,000...
-
Focus group research conducted by advertising agencies like Leo Burnett shows that Asia's youngsters (the proverbial Xgeneration) mimic American trends, but at the same time, they are pretty...
-
Many firms in the past have followed an incremental approach to the sales channels used in international markets. Typically, these companies started by selling in foreign markets through sales agents...
-
Kirin Brewery Co.: In Search of a Growth Strategy (Case #14, Notes) Overview Mr. Kato, the president and CEO of Kirin Brewery Company, one of Japan's largest producers of alcoholic beverages, must...
-
Once the Consumer Product Safety Commission prohibits the sale of a particular product in the United States, a manufacturer can no longer sell the product to U.S. wholesalers or retailers. However,...
-
Penalties for individuals who have violated the FCPA can run up to \(\$ 250,000\) per violation and five years' imprisonment. Corporate fines can be up to \(\$ 2\) million per violation. Also, under...
-
PricewaterhouseCoopers (or PwC, as it is known), one of the United States' "Big 4" accounting firms, has had a tax practice in Russia since the time that country changed from Communist rule. One of...
Study smarter with the SolutionInn App