Plaza the logistics of Zaragoza

Plaza, the Logistics park of Zaragoza Case Analysis

Supply Chain Network Diagram

The supply chain flow and the respective lead times Option 1
Option 2
Average Cycle Time(Days)
Rotterdam
Zaragoza
Average Time to reach the port
29
24
Time spent at port
1.5
1.5
Time from warehouse to customer
0.5
1.5
Total average lead time(days)
31
27

The average time to reach the port was averaged for each option 1 from the data given
Demand, Inventory and Safety Stock Option 1
Option 2

Rotterdam
Zaragoza

Annual Demand (D) (units)
100000
100000 Inventory Review Period( T) (days)
30
30 Inventory per review period (Q)
8219.178082
8219.17808 Q = D(units/Year) * T (in years)
Standard Deviation (σ d) (units/year)
10000
10000 S.D during Lead Time(σ T+L)
4088.071522
3951.76396 σ T+L = Sqrt(T+L) * σ d
Safety Stock(SS) (units/review period)
6704.437296
6480.89289 SS = 1.64*σ T+L
Average Inventory per review period(Q*)
10814.02634
10590.4819
Q* = (Q/2) + SS
Average Inventory (Q**)(in units)
10814
10590
Q**= Q* * No. of review periods/year
Annual Average Inventory transported (Q** tl)(in truckloads)
282
282
(Q**tl) = (Q/No. of units per truck)*12

The number of truckloads transported per order = 8219.17/No: of units in truck load =23 per order
So Total No: of truckloads/year = 23*12 = 282

Transportation Costs
Transportation Costs
Option 1
Option 2

Rotterdam
Zaragoza

Shipping Cost from China to Port/TEU*
145
0 Shipping Cost from China to Port/Truckload*
72.5
0 Port handling charges/Truckload
335
305 Transportation Cost from Port to Warehouse/TL
0
495 Average Distance from W.house to customer (km)
516.1
1220.7 Average Cost per km
1.2
1.02 Transportation Cost from W.house to customer/TL
619.32
1245.114 Total Transportation Cost /TL(Tr.C/TL)
1026.82
2045.114 Total Annual Transportation Cost(T.Tr.C)*
289358.2779
576313.926