CTU SCM210 Phase 5 Individual Project

SCM210-1501A-03 Introduction to Logistics/Supply Chain
Management
Task Name: Phase
5 Individual Project
Deliverable Length: 1,200
words + section VI calculation template and
Details:

Weekly tasks or assignments (Individual or Group Projects)
will be due by Monday and late submissions will be assigned a late penalty in
accordance with the late penalty policy found in the syllabus. NOTE: All
submission posting times are based on midnight Central Time.

Review the recommendations of your instructor and classmates
for your Key Assignment, and make the appropriate changes to your draft. Add
the following two sections to your final draft:

Section VI: Quantitative Factors (Excel Spreadsheet)

Provide a detailed recommendation as to whether you should
open a West Coast distribution center, add on to the existing East Coast
factory and warehouse, or build a combination West Coast manufacturing location
and warehouse? Your response must be quantitatively based using the data in
section II, the additional data below, and from external resources as needed.

Use this template to show your numeric calculations. Without
calculations shown for how you reached your conclusion, section IV will earn 0
points. REMEMBER: Decisions like this are based on a comparison of option A
versus current methods, or option B versus current methods.

The products are
primarily medium- and large-size insulated coolers, like you might use for a
picnic or trip to the beach. Each cooler occupies 2 cubic feet of trailer truck
space; trailers are 10 x 10 x 40’ long and cost $1,000 to ship from the East
Coast to the West Coast.
The coolers are
made of 3 components: 1 lb of raw material A, 1/4 lb of raw material B, and 1 gallon
of material C, weighing 10 lbs. Based on this information, the added freight
cost to get raw materials to a West Coast manufacturing location would be
$0.20, $0.20, and $0.60 per finished-good unit, respectively.
The mass
merchandiser location on the West Coast will be purchasing 10,000 units per
week, but in lots of only 1,000 at a time because of their retail store space
constraints.
The market is very
competitive, with generally stable or decreasing marketplace prices.
In countries that
are warm year-round, sales are pretty steady; in southern countries and states
or those that have seasons, 90% of sales occur in the May–August period.
The raw materials
to make this product are bulky, and inbound shipping from the suppliers to the
manufacturing plant represents 20% of total raw material costs. These raw
materials are supplied in the United States from the East Coast; they are not
available elsewhere.
Domestic demand is
expected to increase 5% annually; international demand is expected to increase
15% annually in France and Spain, but only 2% in Northern European countries.
In the past, to
keep West Coast customers happy, the CEO agreed to freight equalize customer
shipping charges to be competitive with West Coast competition. She says that
they only charge those customers the local freight cost of shipping, which is
$200 per delivery for anything up to half-truckload quantities.

Section VII: Respond to the following in 250 words:

Describe how what
was learned in this mass merchandising industry could be applied to the
logistics challenges in some other industry.
Would the
logistics criteria for decision making be the same as for mass merchandising?
Why or why not?
Would the
logistics metrics be the same as for the mass merchandising industry? Why or
why not?

Please submit your assignment.