Case Studies Presentation Principles of Logistics and Supply Chain Management, Fall 2014 Red Team - Sumeet, Aaron, Nicholas,Travis, Trevor, Dylan

Case 1 The Facts: 1)Forecasted Demand is 100,000 units per month. 1)Shipments can only be received on Mondays. -Lead time is 13 days (Busan to Long Beach) 1)40’ containers with max. gross weight of 67,200 lbs. -Dimensions are 19’4⅛”L x 7’8½”W x 7’10⅛”H 1)Pallets are 4’9”x3’5” and hold 5,000 E-padd units.

Case 1 Mistakes were made, answers were compromised.

Case 1 Inventory Level $$$$$

Case 1

Correct Answers: 1)65,000 units can be shipped on each 40’ container. 2)The 40’ container is Weighed Out at 13 pallets, as gross limit of 67,200 lbs. is reached before Cube Out. 3)(See Sawtooth graph) 4)4 total containers are needed (including the one which arrived on Day “0”) to support 60-day demand. 5)30,010 units are on hand at Day 30 (End of Month 1). 6)60,020 units are on hand at Day 60 (End of Month 2).

Case 2 Seattle- HDDS China-Base Units LA-Memory Modules LA Dallas LA NY 2 week lead time 8 week lead time Sales should note that it takes 6 days on average to get to customer (large order additional 8 weeks). Parameters from 1 day to 12 days.

Case 2 CL-03-08CL-09-16CL Month Month Month Forecasted Month Forecasted Month Forecasted Month Forecasted Module Shipment

Case 2 Month 4-6 Forecasted Shipments CL-03-08CL-09-16CL DC LA DC Dallas18352 DC NY551567

Case 2 DC LACL-03-08CL-09-16CL Base Unit TB HDD GB Module Weighted average forecasted component requirements.

Case 2 DC DallasCL-03-08CL-09-16CL Base Unit TB HDD GB Module18708 Weighted average forecasted component requirements.

Case 2 DC NYCL-03-08CL-09-16CL Base Unit TB HDD GB Module Weighted average forecasted component requirements.

Case 2 Month 4 ActualCL-03-08CL-09-16CL DC LA DC Dallas12251 DC NY Divert components to DC LA to ship to customer at 78% margin less 12% = 66%

Case 3 40,000 units can be shipped on each 20’ container 50 cases x 100 units per case = 5000 units 5000 units x 8 since 8 pallets will fit in each container The container is cubed out since it has reached its volume capacity before it has reached its weight limit. Inventory Cycle To reach 100,000 units in 2 months with no stockouts 4 containers need to be delivered to Long Beach. Since 40,000 units can be shipped per container 40,000 x 4 = 160,000 Long Beach Seoul, Korea

Case 3 The ending inventory number on the last day of the first month of shipments is 45,010 units The ending inventory number on the last day of the second month of shipments is 25,020 The three 40’ containers costs $10,500 to ship vs. The four 20’ containers cost $11,000 to ship Three 40’ containers are more economical (although inventory costs are higher). The most economical scenario is to receive one 40’ container for units on Monday, Day 22 Receive 20’ containers for 40,000 units (each) on Monday, Day 36 and Monday, Day 50 as seen in the next slide.

Case 3

The most economical scenario is to: Receive one 40’ container for 65,000 units on Monday, Day 22. Receive 20’ containers for 40,000 units (each) on Monday, Day 36 and Monday, Day 50

Case 3

Case 4 Kunshan, China Shanghai, China Long Beach, USA Chicago, USA Shipping Dog Food From To

INCOTERMS DefinitionResponsible for Freight Owns in TransitLiable for Damage Seller Loads, Delivers, Pays Freight, and Insures to named port (Long Beach) Seller Seller Responsibility ends at Buyer Pickup location (Kunshan) Buyer Seller Clears for Export, Loads and Delivers to named location (Shanghai) Buyer Seller clears for Export, Delivers to Carrier, Buyer Pays Freight, is Liable to Destination Buyer Seller Pays Freight, is Liable to named Destination, Ready to Unload Seller EXW CIF FOB FCA DDP

Shipping and Packaging Symbols

Summary of Topics Learned ●Forecasting and inventory management ●Identifying the most efficient method of transportation ●Ownership of goods with different incoterms ●Translation of common packing symbols ●Greater understanding of real world logistics

Any Questions?