426 W5 Peer Reviews
Response Post: Later in the unit, re-enter the thread and respond to at LEAST 2 answers composed by your classmates. These peer responses should be thought-provoking, stimulating further discussion of the topics with perceptions, ideas, and supported facts.
Responds to every aspect of the discussion prompt with originality. Displays an exceptional familiarity with the texts and topics being covered.
Response Post: 100+ words
Responses are substantive, adds value to the class, encourages critical thinking based on evidence or research, and are not opinion-based.
Includes more than one citation from either the material assigned, or outside material identified by the student. Cites reference materials used without error.
Exceptional use of proper English and free of all typographical errors and grammatical mistakes.
1-Compare and contrast the three options from the perspective of customer service. Which do you believe will provide the best level of service? Why?
Of the three options the third would be the best for allowing PFC to make the changes internal while letting someone else handle the external flows of delivery. PFC has a few demands that will need to be addressed such as advance shipping notification, RFID tags and improved inventory visibility. This will be enough for them to focus on so they can get it right then eventually take over the outsourced business if they see a need.
3-What types of functional and cost trade-offs will Himmer need to analyze?
A few things that they will need to look at would be warehouse and delivery cost. does it make sense for them to build or rent a warehouse in other locations to minimize delivery cost? Also they much look at the cost of the information systems that will be required in the warehouse that will meet the needs of the customer. Will the cost of the upgrades be worth keeping the companies that provide 80 percent of their business happy?
Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. (2016). Supply chain management: a logistics perspective. Nelson Education.
1.Compare and contrast the three options from the perspective of customer service. Which do you believe will provide the best level of service? Why?
Upgrading the Distribution Center in Kentucky, and automation are a good option. The DC gives the ability to accumulate, allocate and sort in one place, but can also slow down delivery and add expense. Option 2 adds more DC’s while modifying their operational processes, is also a good choice. It can lower the cost of shipping items rapidly and shorten cycle time and reduce the “risk pool”. The third option of outsourcing to a 3PL can free up capitol funds that would have been consumed by a warehouse, as well as flexibility to move items to and from a region when needed. All three choices are good, but from a customer service standpoint outsourcing would make the best use of small shipments and shorter cycle times, while meeting customer demands.
3.What types of functional and cost trade-offs will Himmer need to analyze?
The primary tradeoffs are Space vs. equipment, equipment vs. people, and people vs. space. A few of the items to consider are throughput volume, demand variability, and market density. In this evolving market flexibility will be a key factor to consider, as well as protecting against uncertainty.
Coyle, J. J., Langley, C. J., Novack, R. A. (20160301). Supply Chain Management: A Logistics Perspective, 10th Edition
1. What responsibilities, controls, and costs does V2 bear under each of the FOB terms offered?
Speaker delivery options costs:
1. LTL delivery = 200 units for $2485/per week = $12.43 per unit
2. TL delivery with 400 units for $2946 twice a month = $7.37 per unit
Other responsibilities/costs include: parts, handling fees, taxes, custom fees, etc. (coming from Tijuana, Mexico),
Receiver options costs:
1. Weekly Ground = 200 units for $2169/per delivery (week) = $10.85 per unit
2. Airfreight = 100 units for $2411/per delivery (twice per week) = $24.11 per unit
Other responsibilities/costs: free on board (FOB), freight collect
6. What other supply chain issues and costs must SSE take into consideration when making these transportation decisions?
When making transportation decisions the text discusses important considerations such as shipment criteria related to the product, transit time average, reliability, equipment availability/capacity, geographic coverage, product protection and rates (Coyle, p. 443). Taking all these into factors into consideration with the type of product being moved, it’s helpful to narrow to a limited number of quality carriers. A few important reasons for this is to help leverage purchasing power to keep rates low and enhances the business relationship that values each other’s requirements and service expectations.
1. What responsibilities, control, and costs does V2 bear under each of the FOB terms offered?
The FOB terms that have been offered to V2 are FOB destination for the speakers and FOB origin for the receivers. In both cases, the shipping charges are as per Freight Collect terms.
FOB destination: In this term, the responsibility of V2 begins at the moment they collect the shipment. The control on selecting transportation does not lie with them and the cost incurred for the shipment will be borne by V2.
FOB origin: In this term the responsibility of transportation, the liability of damages during transportation and choosing the transportation means lie with V2. The supplier’s responsibility ends once the shipment leaves their station. Here V2 will need to bear the cost of freight charges as well.
6. What other supply chain issues and costs must SSE take into consideration when making these transportation decision?
· Not knowing the total order cost could determine if having more frequent deliveries would be more cost-effective. Also knowing what your demand is for speakers and receivers will help you determine if ordering in bulk and using air transit or FTL carriers would be more cost effective and on a more frequent basis
The distribution costs involved
The procurement costs from the new suppliers
The quality of the raw material from the new supplier
The turn around time of supply chain processes
Quality costs involved in SCM