Jones Tools, located in Montreal, produces precision equipment which it sells to all the aircraft producers in Canada, the United States and Mexico. Included in the components it purchases are small precision forgings, weighing anywhere from 2 pounds to 30 pounds. Jones’s annual purchase is 7,000 of these forgings. The primary supplier of these precision forgings is Smith Metals Canada Limited, located in Vancouver. Smith Metals is known for their reputation of very high quality products (as the name suggests) and has been a reliable supplier to Jones Tools for many years. The buyer of castings at Jones Tools estimates that their next 12 month purchase from Smith Metals will total about 6,000, with an average weight of 15 pounds. Delivery requirements call for monthly shipments of approximately equal amounts. Since customer requirements often aren’t known until shortly before these forgings must be put into production, Jones Tools can give Smith Metals its size requirements only about 6 weeks before the items are needed in the Montreal Plant. It typically takes Smith Metals about 3 weeks to make their production run and have the items ready to ship. Modal delivery times are as follows:
* Air - same day
* Truck – FTL – 3 days, LTL 4 days
* Rail – FCL – 4 days, LCL 5 days
* Marine (unknown)
In 1 or 2 pages using a report format with an Introduction, Body and Conclusion, discuss and recommend a mode of transport for Jones Tools. 1.
Explain the purpose of your report in an opening statement. 2.
List the factors (both modal and product) you considered in making your choice (e.g. Rail - lowest cost). 3.
Briefly list the other modes and explain why you discounted them (e.g. Road – too slow). 4.
Hand in your report next class
Assignment has a value of 10%.
Assignments handed in after the class will be assessed a 10% penalty. 7.
Submit with a Cover Page.
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