Submitted by: Submitted by gottipati
Views: 133
Words: 1312
Pages: 6
Category: Business and Industry
Date Submitted: 10/14/2014 09:38 PM
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 |...