1- The JEDI COUNSEL, has an agreement to supply light sabers and Sith capes thro
ID: 375846 • Letter: 1
Question
1- The JEDI COUNSEL, has an agreement to supply light sabers and Sith capes throughout the year to all malls with super hero outfits. The requirements for the remaining of the 2016 year are as follows: July August Sep Oct Nov Dee DEMAND 65 120 90 100 500 250 The JEDI Counsel, has two (2) shipping options. One, ship each month the exact quantities required by the customers. Under this scenario, shipping costs per item are calculated at S2.50 per item The 2nd Option is to ship ahead of schedule. The shipping company will give The JEDI Counsel a shipping discount if shipping in increments of 375 pcs. If TJC ships 375 units, the shipping costs are S1.25 per unit, instead of $2.50. The other factor to consider is the inventory charge back the mall will apply to TJC. The Mall will charge TJC S0.25 per item above their monthly usage that they have to keep in stock. 1.1 - Figure out total logistics costs if TJC ships only what the Mall demand requires each month (4 points) July August Sep Oct Nov Dec TOTALS DEMAND 65 120 90 100 500 250 Shipments Inventory Inventory Cost Landed Costs 1.2- Figure out total logistics costs if TJC in increments of 375 pcs in order to save in logistics (transportation) but incurring inventoryExplanation / Answer
1-1. Month July Aug Sept Oct Nov Dec Total
Demand 65 120 90 100 500 250 1125
Logistic cost 163 300 225 250 1250 625 $2813
Logistic cost will be $2813.
1.2.
Month July Aug Sept Oct Nov Dec Total
Demand 65 120 90 100 500 250 1125
Shipment 375 0 0 0 750 0 1130
Inventory 315 195 105 5 255 5
Inventory Cost 79 49 26 1 64 1 220
Logistic cost 394 0 0 0 938 0 1332
Total cost 473 49 26 1 1002 1 1552
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.