Moonchem Case
GPA784 – Systèmes flexibles de production (Groupe 01 – Amin Chaabane) Travail pratique #8 Cours 9-10: Gestion de l’inventaire Solution pour l’étude de cas “MoonChem” 1. What is the annual cost of MoonChem’s strategy of sending full truckloads to each customer in the Peoria region to replenish consignment inventory? MoonChem’s customer profile appears in Table 10-4 and is reproduced below: Customer Type Number of Consumption Customers (Pounds per Month) Small Medium Large 12 6 2 1,000 5,000 12,000
Each truck has a fixed capacity of 40,000 pounds and costs MoonChem $400 per delivery. The Small customers use only 12,000 pounds per year, so a 40,000 truckload represents better than a three year supply! Total policy cost is obtained using a Q=40,000, an S=$400, and an hC = (25%)($1).
SD hCQ + Q 2 $400(12, 000) (25%)($1)40, 000 TCSmall = + = $5,120 40, 000 2 $400(60, 000) (25%)($1)40, 000 TCMedium = + = $5, 600 40, 000 2 $400(144, 000) (25%)($1)40, 000 TCLarge = + = $6, 440 40, 000 2 TC =
Factoring in the number of each class of customers: $5,120 ×12 + $5, 600 × 6 + $6, 440 × 2 = $107,920 2. Consider different delivery options and evaluate the cost of each. What delivery option do you recommend for MoonChem? MoonChem has the option of scheduling multiple deliveries on a single truck with a base charge of $350 for the truck and $50 for each delivery the truck makes; truck capacity remains at 40,000 pounds. Three alternatives that students might consider include creating a “supergroup”
of all customer deliveries on a single truck, creating three groups consisting of customers within each class, and creating two groups consisting of one large, three medium, and six small customers each. Costs for each of these alternatives is examined in turn. Alternative 1: The Supergroup The supergroup approach has a total annual demand of 792,000 pounds of the base chemical and would incur a shipping cost of $350+20($50)=$1350. The optimal order frequency is: k n =
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Each truck has a fixed capacity of 40,000 pounds and costs MoonChem $400 per delivery. The Small customers use only 12,000 pounds per year, so a 40,000 truckload represents better than a three year supply! Total policy cost is obtained using a Q=40,000, an S=$400, and an hC = (25%)($1).
SD hCQ + Q 2 $400(12, 000) (25%)($1)40, 000 TCSmall = + = $5,120 40, 000 2 $400(60, 000) (25%)($1)40, 000 TCMedium = + = $5, 600 40, 000 2 $400(144, 000) (25%)($1)40, 000 TCLarge = + = $6, 440 40, 000 2 TC =
Factoring in the number of each class of customers: $5,120 ×12 + $5, 600 × 6 + $6, 440 × 2 = $107,920 2. Consider different delivery options and evaluate the cost of each. What delivery option do you recommend for MoonChem? MoonChem has the option of scheduling multiple deliveries on a single truck with a base charge of $350 for the truck and $50 for each delivery the truck makes; truck capacity remains at 40,000 pounds. Three alternatives that students might consider include creating a “supergroup”
of all customer deliveries on a single truck, creating three groups consisting of customers within each class, and creating two groups consisting of one large, three medium, and six small customers each. Costs for each of these alternatives is examined in turn. Alternative 1: The Supergroup The supergroup approach has a total annual demand of 792,000 pounds of the base chemical and would incur a shipping cost of $350+20($50)=$1350. The optimal order frequency is: k n =
*
i