Plaza Logistics Case Study

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 |...