Delivery Strategy at MoonChem

4. Assuming a 20% gross margin for each printer, sea transportation costs of $1 per printer and air transportation costs of $10 per printer (air shipment lead-time is three days), evaluate the various alternatives available to Brent Cartier to address the inventory and service problem.

Dong Hai Supply Annual Inventory Carrying Cost = 0.322 * ((24,037*80.11) + (24,037/551)*182) = $622,601.

4. What inventory method is used to value inventories? Does this method reflect current cost at year-end?

Raising maximum distributor order, more than customer demand is one good choice made in the three games. According to the supply chain order, the maximum distributor order totals to 15units compared to a maximum demand of 9units. These figures prove that backordering costs will not occur during business operations. Good inventory management techniques require placing adequate orders to reduce backordering costs. The cost and time of backordering affects operations and hence the need to adequate inventory to match demand changes. An average customer order of 7units compared to average distributor order of 5units points to low backordering costs. A minimum customer order of 4units means that market demand is under control from

330-10-30330-10-30-1 The primary basis of accounting for inventories is cost, which has been defined generally as the price paid or consideration given to acquire an asset. As applied to inventories, cost means in principle the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location. It is understood to mean acquisition and production cost, and its determination involves many considerations. 330-10-30330-10-30-2 Although principles for the determination of inventory costs may be easily stated, their application, particularly to such inventory items as work in process and finished goods, is difficult because of the variety of considerations in the allocation of costs and charges.

AAA Transportation is an interstate company that focuses on transporting wholesale products in refrigerated trailers around Midwest this company is located in Waukegan,WI. On the other hand, AAA Transportation has new owners that are planning to make some positive changes that can potentially raise the company's growth becoming more successful. The new owners want to add a delivery of nonperishable products, such as canned foods, to their delivery routes, allowing AAA to expand the area they cover and to provide expanded service to their existing customers. Taking in consideration that many of the routes do not require a full load, there would

Inventory segmentation represents a substantial challenge due to the hardy product selection requirements for Internet retailers. Determining the products that must be handle in one 's own distribution centers, versus wholesaler distribution centers and producers places has an impact on cost service structure of Internet retailers (Chiles & Dau, 2005).

An ideal SCM integrates all aspects of logistics in a rapid manner attempting to achieve the objectives by using who, what, when, where, and why (the 5Ws) for accuracy and success. The focus of this literature will cover the history, functions, modifications and future of SCM, while also considering the literature and preceding research that was conducted in each area. This paper will enhance the readers’ understanding of the SCM in general along with the process and concepts of the subject. It will also enable readers to apply aspects of SCM in their respective line of business. The literature for this review is relative, ranging from one to three years old. Organizations must understand that Supply Chain Management can increase the company’s EBITA (Earnings Before Interest Taxes Amortization) or decrease it if used properly. An additional benefit of an optimal SCM is optimizing time from production to customer, which can increase customer base when the industry notice speed of delivery to customers.

Delivery to a customer is a key component to retail business, whether online or in a store. Measuring delivery cost efficiency, the total cost of delivery from the stock(s) to the customers’ homes or to the desired store for pick-up is evaluated. The delivery cost is the key measurement for this metric. The

It is evident in the Dakota Office Products case that there is a wide variety of product created by Dakota that is shipped to their customers. That, paired with the fact that there are high overhead costs related to the desktop delivery option, also tells the reader that an incorrect accounting system is currently being used. One needs only to look at the profitability difference between Customer A & B. Currently, there is no difference in the way that the size of orders are priced. In their current system, only the larger orders create a profit for the customer.

Because the product was leaving the warehouse and getting to stores quicker, I was able to reduce the storage space which was an initial problem so the increase of costs because of it decreased. The stores showed a moderate increase in profit.

When offers of reduced pricing are accepted for equipment, meeting delivery expectations becomes an important part of enhancing the customer experience to maintain satisfied loyal customers. An inventory specialist in the current distribution center would be given the additional task of segregating and maintaining inventory levels to meet the needs of the customer loyalty department.

The Distribution centers in the 5 regions order every 6 days using a periodic review while maintaining their safety stock levels to ensure a customer service level of 95% (Chopra, 323).

Following considerable investment in new warehouse and carrier management systems the number and quality of delivery options had increased. Now delivery options include: same day, next day or standard delivery options that normally takes around 2-3 days. Also customers can set delivery date by themselves and if wanted can be notified via email or text alerts of delivery status. In addition 85% if orders are tractable

1. Identify the flaws associated with the current method of assigning shipping and warehousing costs to Sharp’s products.