Case Study: Darby Company Distribution System Design

1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.

To improve this yield, Schaeffer was considering the installation of a light meter system. This system was projected to cost $40,000 and would require a full-time skilled operator at the same pay grade as the chief berry receiver.

1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?

Freight cost will reduce by Truck load and by using maximize the cube and also less than truck load shipment will reduce.

Feedback: In Beta, increasing X production by 2 units requires the sacrifice of 3 units of Y. Therefore each one unit of X would require sacrificing 1.5 units of Y.

One of the major benefits of expansion is the reduction of fixed cost (fixed and selling). The cost is absorbed by 85,000 units instead of 80,000 units resulting in saving of $0.42 per unit.

3. Briefly describe how the current production cost assignment system works. What are the consumption ratios (activity percentages) for assigning manufacturing overhead to each product at present?

To estimate variable costs, Tables F and I are needed. Table F shows the cost of goods sold averages 77.1% of sales (variable cost); Table I shows an average wholesale price for the seven competing brands of about $3.16 per six pack (about one gallon).

2. What is the maximum long-term achievable throughput rate of receiving Plant 1? What factors affect this throughput rate?

* Loads were picked up from location A and delivered to one of 5 warehouses, placed on another truck with optimized route for location B (software driven route optimization)

The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:

This assignment will be discussing about when I was working as a logistics manager for Morrisons and we will be talking about how Morrisons distribution system works and evaluating the system. Morrisons' market share as of August 2013 was 11.3%, making it the smallest of the "Big Four" supermarkets, behind Tesco (30.1%), Sainsbury's (16.6%) and Asda (16.4%), but ahead of the fifth place Co-operative Group, which had a share of 4.4% - http://en.wikipedia.org/wiki/Morrisons. There is currently 569 stores across the UK and this means that the distribution system must be effective and be able to deliver goods to the Morrisons stores in time.

The $320,000, on the other hand, is a fixed cost associated with the proposed addition.

• This cost method does not provide the best system for JDCW’s cost allocation. By using only three overhead rates the present system grossly undermines the true production costs since other activities of the production process are not acknowledged.

As in part one of the Supply Chain Game, we were given the option to use trucks as a shipping method. This method can make or break your bottom line because it is an expensive option if you are not utilizing it properly. The cost of using this shipping method is still $15,000 whether the truck is in full or partial methods. The importance of running this part of the operation to perfection is in the numbers. A truck that leaves at half capacity (100 drums) is only generating $145,000 on that run, whereas a full truck would yield