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Jdt Task 2

In: Business and Management

Submitted By niclou
Words 1371
Pages 6
A. Distribution Pattern Alistair Wu wants to know what the lowest possible monthly transportation cost can be and what shipping plan they should adopt to achieve that. In order to achieve this, I used the Intuitive Lowest-Cost Method. First, a chart was created to look at costs from each factory to each warehouse as well as how much each factory produces and how much each warehouse needs. This chart can be seen in the attached excel. From there the cell with the lowest cost is identified. In this case there are two; Shipping from Shuzworld F to warehouse one and from Shuzworld H to Warehouse 3. Because these are the lowest cost areas, as many units as possible is allocated to those warehouses from the factories without exceeding supply and demand. Warehouse 1 needs 2,500 units but Shuzworld F only produces 2,200 units. That means Warehouse 1 will take all off the units from Shuzworld F and still have a demand of 300 units. Warehouse needs 1,800 units and Shuzworld H produces 2,300 units. This means Warehouse 3 will receive all of its units from Shuzworld H and Shuzworld H will still have an excess of 500 units. After this, the lowest cost after the first is looked for. Warehouse 3 is already taken care of so none of the costs need to be looked at in that column. The next most efficient cost is Shuzworld H to Warehouse 1 and Shanghai to Warehouse 2. Shanghai can only produce 1,300 units so Warehouse 2 will take those units and still have a demand for 300 more units. Warehouse 1 only needs 300 more units to complete its demand so it will take those units from Shuzworld H leaving Shuzworld H with and excess of 200 units. At the end of this, Warehouse 2 still needs 200 units so the warehouse will get those units from Shuzworld H. The graph showing this is again on the excel sheet. Overall, when the costs are added up, the total cost of shipping the units

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