Louis is the only one showing any improvement, using cost per unit shipped as the performance criterion. The cost for the first five months of 2003 was $9. 97 and for the first five months of 2004, it fell to $9. 07. Question 2: When comparing performance during the iris five months of 2004 with performance in 2003, which warehouse shows the poorest change in performance? The worst change is the company’s own warehouse (located in Fargo), where costs per unit shipped increased 31%.
Among the public warehouses used, Denver was the worst in terms of cost per unit handled. It is also the most expensive public warehouse that Brand uses. Question 3: When comparisons are made among all eight warehouses, which one do you think does the best Job for the Brand Company? What criteria did you use? Why? Using the cost per nit handled criterion, SST. Louis does the best Job, closely followed by Chicago. Question 4: J. Q. S aggressive and is going to recommend that his father cancel the contract with one of the warehouses and give that business to a competing warehouse in the same city. J. Q. Feels that when word of this gets around, the other warehouses they use will “shape up. ” Which of the seven should J. Q. Recommend be dropped? Why? Denver has the lowest volume and highest unit costs among all the public warehouses used. In addition, it had been closed by a strike which must have inconvenienced the Brand Company.
It may be that the warehouse workers’ unions are strong in the Denver area. J. Q. Should probably check out rates and productivity measures of other Denver warehouses before deciding to drop its current warehouse there. Advantages of e-catalog and sales volume evolution Online catalog benefits week ; Major advantage of customized catalogs is pricing. ; Electronic orders cost 55%less to process than paperboard orders. Sales through the Web site CE application Cases. Search Engines, Intelligent Agents and Shopping Carts Search engine – Computer program that can access a database of Internet resources, ;Software (intelligent) agent – Software that can perform routine tasks that require intelligence ;Electronic shopping cart – Order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop effaces 2 JUST-IN-TIME IN KALAMAZOO Question 1: Total annual cost: Gas range: Toilet: pump: Refrigerator (large): Refrigerator (small): [(95+1 5/(1 Foam cushion: 500/(1 DVD player (type D): Dome light: Awning brackets:
Insect screens: So: Current system’s total annual cost= 918892 Question 2: Refrigerator (large): (1 Refrigerator (small): (85+1 Foam cushion: so: KIT system’s total annual cost=295516 Question 3: If Ballooner use KIT system, he need to spent extra cost of buying equipment. It need about between $500,and $1,000,000. This cost is not necessary for current system. On other hands, using KIT system will save annual cost. The current system total annual cost is $918892, however, KIT system Just need $295516. The former minus the latter is $ 623376.
So if Ballooner using KIT system will reduce his cost it equal to improve the benefits. Question 4: If using the KIT system, there are some items needs to maintained safety stocks. It included Pump, small refrigerator, foam cushion, dome lights, awing brackets, and insect screens. The reason why they should be maintained is the average number of huge gap between these numbers easy to due to shortage of resources. Therefore, it should maintained safety stocks. I believe that the number of safety stocks should achieve half of the average number of units used each week.
