Practice More Quizzes:
Q:
Alpha is considering choosing a location in Canada to supply a warehouse in the U.S. for the product YYWB0819 sourced from Thai. Given the data, we need to help them calculate the TLC.
We know the transit and custom lead-time is 7 + 2 = 9 days and monthly throughput is 80,000 units. What is the average monthly transit inventory?
Q:
Each unit transported has a direct material cost of $400 and incurs an additional 3% (on the material cost) inbound freight. Each unit also has value added costs, including labor and quality control cost which total $20 per unit. Last, each unit is allocated an overhead of 5% (of the direct material and value added costs). Finally, each unit incurs a delivery cost of $10 per unit. What is corresponding cost incurred per month?
Q:
With an annual cost of capital of 15% and a safety inventory level of 20,000 units, what is the average monthly TLC for Alpha’s new location?
Q:
Alpha is also considering to outsource another product WBGG0805. Suppose its retail price is $80 and current internal production cost is $50, 70% of which comes from purchasing. A cost study suggests that if the product would be sourced externally, the sourcing cost would be 30% lower than current internal cost. How much would the contribution margin change through outsourcing?
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