Supply Chain Management

[Name of Author]

[Name of Institute]

Supply Chain Management

Introduction

Question #1 what is the annual distribution cost of the current distribution network? Include transportation and inventory costs?

DESCRIPTION

STORES

SUPPLIERS

ILLUNIOUS (Sales U)

Arizona (Sales Units)

Michel Stores in Illinois and Arizona

32

8

50,000

10,000

Total Sold Units

400000

80000

Case Analysis

Costing Analysis for Illinois Stores

 

 

 

 

Truck Load (Units)

Cost per Truck

Transportation Cost per Unit

Mikes

Illinois Stores

10,000

$450

$22.22

Costing Analysis

 

 

Cost of per Truck to shift 10,000 Units

$4,500,000

 

 

From Suppliers to Illinois Stores

Total Cost

$36,000,000

 

 

 

 

 

 

 

 

Inventory Costs for Arizona Store

 

Units

Shipment Cost

Holding Cost

Total Cost

Inventory Cost

Quarterly

10,000

$0.50

$1.50

$2.00

$20,000.00

Annually

80,000

 

 

 

$160,000.00

 

 

 

 

 

 

Alternatives for Illinois

Alternatives for Illinois (direct shipping)

 

 

Capacity (U)

Per deliver cost

Larger Truck

 

40,000

$1,150

 

 

 

 

Annual ...