MoonChem Case Study answers

MoonChem Case Study answers

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1、1.WhatistheannualcostofMoonChem’sstrategyofsendingfulltruckloadstoeachcustomerinthePeoriaregiontoreplenishconsignmentinventory?MoonChem’scustomerprofileappearsinTable10-4andisreproducedbelow:CustomerTypeNumberofCustomersConsumption(PoundsperMonth)Small121,000M

2、edium65,000Large212,000Eachtruckhasafixedcapacityof40,000poundsandcostsMoonChem$400perdelivery.TheSmallcustomersuseonly12,000poundsperyear,soa40,000truckloadrepresentsbetterthanathreeyearsupply!TotalpolicycostisobtainedusingaQ=40,000,anS=$400,andanhC=(25%)($1)

3、.Factoringinthenumberofeachclassofcustomers:2.Considerdifferentdeliveryoptionsandevaluatethecostofeach.WhatdeliveryoptiondoyourecommendforMoonChem?MoonChemhastheoptionofschedulingmultipledeliveriesonasingletruckwithabasechargeof$350forthetruckand$50foreachdeli

4、verythetruckmakes;truckcapacityremainsat40,000pounds.Threealternativesthatstudentsmightconsiderincludecreatinga“supergroup”ofallcustomerdeliveriesonasingletruck,creatingthreegroupsconsistingofcustomerswithineachclass,andcreatingtwogroupsconsistingofonelarge,th

5、reemedium,andsixsmallcustomerseach.Costsforeachofthesealternativesareexaminedinturn.Alternative1:TheSupergroupThesupergroupapproachhasatotalannualdemandof792,000poundsofthebasechemicalandwouldincurashippingcostof$350+20($50)=$1350.Theoptimalorderfrequencyis:Th

6、isnumberofshipmentsperyearrequiresatruckcapableofholdingfarmorethan40,000pounds;dividing792,000poundsbythe40,000poundtruckcapacitysetsthenumberofordersperyearat19.8.Eachtruckwillhold144,000/19.8=7,273poundsforthesmallcustomers;360,000/19.8=18,182poundsfortheme

7、diumcustomers,and288,000/19.8=14,545poundsforthelargecustomerstobedividedequallyamongthenumberofcustomersineachsizerange.Cycleinventoryacrossallcustomersineachclassishalfoftheorderquantityandresultsinannualholdingcostsof$909,$2273,and$1818forsmall,medium,andla

8、rgerespectively($5,000total).Theannualorderingcostofthispolicyis(19.8orders)($1350/order)=$26,730.Totalplancostis$5,000+$26,730=$31,730.Alternative2:SeparategroupsfortheSmall,Mediu

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