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Assignment Name: W-G-P Chemical Company
Objective: Demonstrate how inventory can impact procurement, transportation, logistics, planning/scheduling, forecasting and finance
Expected format: 3-4 pages
Expected length: 1500 words
How to complete:
- Complete the required course readings.
- Read Case 5 T- W-G-P Chemical Company (page 415-418, 5th Ed)
- You are taking the role of John White, vice president of distribution for W-G-P Chemical Company and are preparing for the annual strategy review session conducted by the firm’s exeutive committee. John has been charged with the task of evaluating his firm’s logistics costs and customer service capability for his firm’s packaged and dry agricultural chemicals. In order to prepare for this session, you must answer the following questions:
- What is the total distribution cost for W-G-P Chemical Company? What is the cost per pound, cubic foot, case, line, and order? How can these measures contribute to the distribution review process?
- What alternative methods of distribution should W-G-P consider for Prevention and Support?
- Discuss the rationale for:
- The early order program
- Customer pickup policies
- Use of public versus private warehouse facilities.
- Prepare detailed answers to these three listed questions and provide supporting evidence and/or calculations where required.
Marking Rubric:
This assignment will be marked according to the following rubric:
|
Requirement |
Marks |
|
Accurately calculated the total distribution costs including the
estimated inventory carrying costs. |
5 |
|
Accurately calculated the five distribution costs by specific unit of
measure, and extended this analysis to the unit costs. A really complete
response would also include discussing the KPI indicators required to measure
performance. |
4 |
|
Provided a clear analysis, discussion and recommendation on the
potential distribution options, including warehouse location in the network. |
6 |
|
Provided clear rationale for the early order program, and provided
sound rationale for the selected warehouse option private versus public. |
5 |
|
TOTAL |
20 |
