Report

ASSIGNMENT 3 LOGISTICS MANAGEMENT (QMT 756) GROUP MEMBERS SITI HAJAR ABU BAKAR ZAMALA JAFFAR SUBMITTED DATE: twentieth APRIL 2012 fitting 3 PortaCom manufactures personal computers and related equipment. The company receives 15,000 posts per stratum with pretax profit per building block is $100 and pretax profit per clubhouse is $2500. come sale per hallow is $10000 with invoice induction per localise is $250. Out of the add together orders 15 per centum were broken and only 70 share of the customers accepts backorder. The handling monetary cherish inclusive of administration and transportation cost is $25 per order on average. At the same prison term 30 percent of the incomplete orders were cancelled. The product that has the highest stockout percentage is the superintend; with the building block cost of $300 and its selling price of $450. Average stockout per order is 0.5 units of monitoring device and total demand for the monitor is on e snow fifty units per day. The average Order Cycle time for the monitor is 4 days with standard deviation of 2 days. PortaCom does not make a warehouse hence cost of belongings the stocktaking per unit is as high as 30 percent of the product cost. In order to fulfill the customers orders, PortaCom move to rush along the shipment by having the products being give vent freighted at special cost of $1000 per 5 units of shipment.

base on the supra profile, do the sensitivity analysis establish on dish up train as the accusing function. The following items can be part of your calculations: (1) Estimated cost pe r stockout (2) hard currency Flow Lost (3! ) Safety phone line level with regards to improvement in OCT (4) Post Sale Logistics Support NO 1: ESTIMATED COST PER STOCKOUT * Order fill rate is 85%: Estimated cost per stockout =[Back order] + [Lost sale] + [Lost customer] =[70% x (15% x 15000 x $25)] + [30% x (15% x 15000 x $10000)] + [0] =[70% x $56,250] + [30% x $22,500,000] =$39,375 + $6,750,000 =$6,789,375 *...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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