Essay on Group Collaboration Draft

820 Words Feb 17th, 2015 4 Pages
Q1. 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)

547 Yuan x $0.14646 = $80.11

Q2. What is the average time for an order filling a TEU container to come from Dong Hai Supply in Chengdu, China to IDC’s Alliance Fort Worth Distribution Center? From CousinsAg in Wahoo, Nebraska to IDC’s Alliance Fort Worth Distribution Center?

15 + 1 + + 4 + 16 + 3 + 4 = 43 days to receive a TEU from Dong Hai Supply
10 + 5 = 15 days to receive a TEU from CousinsAg

Q3. 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 IDC’s Alliance Fort Worth Distribution
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Inventory carrying costs are based on the value of the product at the time it is held in inventory. When the product in sitting in the IDC 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?

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

CousinsAg Annual Inventory Carrying Cost = 0.322* ((22,385*85) + (22,385/406)*105) = $614,542.

Q9. Inventory carrying costs are based on the value of the product at the time it is held in inventory. When the product in sitting in the IDC 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 bases (in dollars) what is the total inventory carrying cost 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?

Per unit carrying cost for Dong Hai Supply = $622,601 / 24,037 = $25.90
Per unit carrying cost
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