Texago Case Study

If the cost system reported sales volume and/or price we would be able to conduct an activity analysis to determine an appropriate cost function to determine the best cost driver for each product.

2. What is the total cost? How much of the total cost are labor costs? Capital costs?

What are the total costs of delivering the style B shades to the port of importation?

The intent of this analysis is to compare and contrast the cost structures for rail, motor carriers and air modes of transportation. Implicit in this analysis is the rapid adoption of intermodal transportation which is often optimized to specific logistics and supply chain objectives (Jennings, Holcomb, 1996).

3. Describe two methods that you can use to calculate postage charges for mail and / or packages. [2.3]

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.

Solely taking a look at the graph, to accommodate future demand for growth I would recommend ocean transportation to move our products from the new facility in China. As we expect demand to grow by 10 percent annually over the next five years, it will be most beneficial to utilize ocean transportation as projected total costs for air becomes higher than ocean above the trade off point of 1,904,761.9 POUNDS. For example, total projected costs were calculated to be at $587,156 for air versus $630,080 for ocean at the end of 5 years. Extrapolate the graph even further into the future, with the expectation of even more growth,

both products and the other located in Dover, Delaware that produces just the file cabinets. These two facilities serve all of the

Alistair Wu has requested that I look at what the lowest shipping schedule and cost can be based on data that he has provided. He wants to know what the lowest possible cost of shipping will can be. Mr. Wu is also considering increasing production at the Shanghai factory from 1,300 to 2,800 units, and wants to ensure that this growth will be an affordable choice. The first chart that was given lists the factory capacity and what each warehouse demand is. The second chart lists the price of shipping from each factory to each warehouse. The chart looks at the demand in the warehouses as well as the cost to

Barrels of oils produced may be a cost driver for some activities in RDS, but not all activities are driven by the production of oil. RDS has other activities that requires significant expenditures as the headquarter. The capital investment on exploration for various

The materials used per unit of production, the Run labor hours and machine hours are provided in exhibit 2. The overhead expenses per unit of the product have been apportioned according to their percentage production and usage. (Drucker, 1999)

5. Proposed location of the new warehouse and transportation distances from the new location to each retail outlet/customer

1. Relative to the U.S. distribution network, calculate the cost associated with running the existing system. Assume that 40 percent of the volume arrives in Seattle and 60 percent in Los Angeles and the port processing fee for federal processing at both locations is $5.00 per CBM. Assume that everything is transferred to the Kansas City distribution center by rail, where it is unloaded and quality checked. Assume that all volume is then transferred by truck to the nine existing warehouses in the United States.

By spreading expenses over the whole year there is a more equal cash outflow each month rather than one huge outflow during one month. An example of this is the offer from insurance companies to be able to pay insurance premiums monthly instead of annually because of the excessively high costs.

Identifiable intangible assets with finite lives are carried at cost less accumulated amortization and adjusted for