You have been tasked bythe management of Gusty Energy Inc.,with developing a logistics plan for the production and distribution of nacelles used in wind energy production.Gusty Energy Incoperates using a 'Pull Business Model' and will run a production line to produce nacelles when they have orders for 250units. Today is5 June2023and the planned start date for production is5 September2023.When production starts,10nacelleswill be producedthe first business week and thereafter production will be30each business week and production will continue until 250nacellesare produced. Nacellesthat are produced need to be stored in the warehouse until they are shipped to the distributors(you can decide when to ship the completed nacelles).

The final product needs to be delivered in the following quantities to the following locations:

1)100 nacelles to Denver, Colorado

2)70nacelles to Panama

3)80nacelles to Chile

Components and materials

Generator:

Cylindrical in shape:48" long,24" in diameter

Weight-2500lbs.

Shipped in wood crate (crated by mfg)

There are two suppliers you can use. One is in Copenhagen Denmarkand the other is in theYen My II Industrial Zone and Industrial Park near Haiphong in Vietnam. You are free to choose either or both.

Origin: Copenhagen, Denmark(see Google earth photos)

Cost per unit $100,000

Time from order to production:45calendardays and then production will be15perworkday

Origin: Yen My II Industrial Zone and Industrial Park near Haiphong in Vietnam (see Google earth photos)

Cost per unit $75,000

Time from order to production:50calendar days and then production will be 10per workday.

Gearbox:

Rectangular in shape:24" high,24" wide,36" depth

Weight-900lbs.

Cost per unit $250,000

Packaged according to buyer's direction (buyer pays for materials)

Origin:Troy, Michigan

Time from order to production:45calendardays and then production will be5perworkday.

Nacelle Shell

Material: Composite (fiberglass,with aluminum frame members and steel mounting plate)

Weight-3,000lbs.

Packaged according to buyer's direction (buyer pays for materials)

Cost per unit- $10,000

Origin:Wilmington, Delaware

Time from order to production:40calendardays and then production will be5per workday

Electric Motors

Weights -Part 1-100lbs.

Part 2 -500lbs.

Packaged according to buyer's direction (buyer pays for materials)

Cost per unit- $15,000

Origin:Halifax, Nova Scotia, Canada

Time from order to production:45calendardays and then production will be20per workday

Controls:

24" high,12" wide,14" deep

Weight: 50lbs.

Packaged according to buyer's direction (buyer pays for materials)

Cost per unit- $1,000

Origin:Toronto, Canada

Time from order to production:30calendardays and then production will be10perworkday

Rotor: (aluminum casting)

3' 6" in diameter by 1' 6" in depth

Weight-200lbs.

Packaged according to buyer's direction (buyer pays for materials)

Cost per unit- $7,500

Origin:Toledo, Ohio

Time from order to production:45calendardays and then production will be20per workday

Steel:

Two-4' long shafts that are3" in diameter

Weight: each shaft weights340lbs.

Cost per shaft - $300

Packaged according to buyer's direction (buyer pays for materials)

Origin:Norfolk, Virginia

Time from order topick-upof each order:7calendar days

Pitch system and braking system (producedtogetherby one supplier)

Packaged in a crate by the supplier. Each crate contains one pitch system and one braking system)

Crate size: 48" by 24" by 18"

Weight:500lbs.

Cost per unit- $50,000

Origin:Columbus, Ohio

Time from order to production:30calendar days and then production will be5per workday

Misc:

Paint, welding wire, hoses and other supplies not mentioned previously can be locally sourced with three days' notice and will be delivered by the suppliers.The weight of all the miscellaneous items will total 75 lbs. per completed nacelle and would take up 3 cubic feet of space if stored. Cost per nacelle - $500

Cost of Warehousingonsite:

Cost $24square foot of floor space/per month ($12for any part of two weeks). This is an all-inclusive price (includes receiving, storage, and delivery to the assembly plant floor). Warehouse interior floor to ceiling height is 36'.

Assumptions:

a.General purpose 40' containers will be available at inland locations and 20', 40', 45' including high cube 40' and 45' containers will be available at the ports.53' truck trailers will be available for domestic transport.

b.All companies involved are well established, reputable, and profitable companies.

c.While you can use a 3PL you still need to address, in detail, each of the issues specified in the assignment. In other words, stating the 3PL will deal with the issue will not fly.

d.Currency exchange rates, bunker surcharges, and fuel surcharges will be based on the date the assignment started.

e.A work week will start on Monday and end on Friday (5 days) and you do not need to factor in holidays.

Develop a logistics plan using DMADV format that describes the logistics involved with moving the materials/ components from their point of production to the assembly plant and the final products to be distributed. Address the following:

1. When each components needs to be ordered

2. Freight units/ modes of transport used for each leg of the journey

3. Consideration of cargo insurance (if, when, and where it is used and its cost)

4. How to deal with customs in each of the involved countries ( responsibility cannot be assigned to customer via INCO terms in this case)