Business Logistic

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KXI724 Business Logistics Systems Assignment 1 Due date: 11.55 pm Friday 31st August 2012

Aim To understand the complexities and importance of customer service, transportation modes and associated costs, inventory impacts and economic order quantity. This assignment is worth a total of 25% of the mark for KXI724.

Requirement An Excel spreadsheet solution and three short paragraphs justifying the differing opinions and decisions. Note that an Excel spreadsheet is provided (KXI724 Assign 1 spreadsheet), so use this for the assignment. Assignments must be submitted electronically via MyLo, consisting of a Word document and the completed Excel spreadsheet. In the Word document just answer the questions where required – you don’t need an executive summary or Table of Contents, etc.

Customer Service, Transportation, Forecasting, EOQ

You are employed by a major organisation that is a large light goods manufacturer based in Brisbane. The company distributes to 50 customers via road and rail from Brisbane to Sydney, Melbourne and Canberra. The transport modes are road or rail. Six of your largest customers – (two AA, three BB and one CC category) which provide more than 50% of your business – have approached you to discuss various methods of getting their goods to them and to look at different transport options and to improve customer service. There have been delivery issues with these six important customers which relates back to poor forecasting, which have impacted on inventory and delivery service. You, as the Logistics Manager have to come up with the different forecasting model options, customer service optimisation, transport modes, and economic order quantities.


Task 1: Forecasting (25%) Use Excel workbook Task 1 Forecasting Senior management is concerned about a dramatic increase in finished goods inventories over 2009 and most of 2010. Inventory investment peaked in November 2010 and began a gradual reduction over the next several months, but...