The Blank Slate - Schm

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same area

27. Spacely Sprockets of Orbit City has 3 customers in Boston. The competition, Cogswell Cogs, has been pricing very aggressively in the Boston market so Spacely must minimize transport cost in order to make any margin on these sales. The weight of each individual shipment is 12,000 pounds. The transport carrier freight rate is $15.75 per hundredweight for individual shipments of this size to Boston. If the orders are combined into one shipment, the rate is $10.50 per hundredweight for orders over 30,000 pounds. However, the carrier will charge $300 for each stop it is required to make. Should Spacely Sprockets consolidate the orders into one shipment?

a. $15.75x120cwt=$1890x3=$5670

b. $10.50x360cwt=$3780 + $300x3=$4680

28. What are 3 advantages of Rail transport?

Green/Cost/Size

29. What is “piggyback” intermodal service?

Trailer on RR car

30. What impact is Amazon Prime(2 day delivery at no extra charge) is having on the logistics mkt?

Rising delivery expectations

31. What are reverse logistics?

Returns

32. When is stock piling inventory justified?

Production shutdown/seasonal sales/known price increase

33. How is a cross-dock different than a conventional warehouse?

Products do not stay overnight/are not “put-away”

34. What is the center of gravity method of warehouse location?

Lowest cost based on demand and distance to customers

35. Adding warehouse locations always reduces customer delivery cost. Why not simply always add more warehouses?

Offset by rising inventory and warehouse costs

36. What type of products are most appropriate for logistics postponement?

High Value Density

37. Impact of higher interest rates and oil prices on global logistics?

Inventory carrying costs up

Global shipping costs up

38. Independent vs, dependent demand

Dependent demand is driven by demand for higher level assembly

39. What are 2 shortcomings of MRP systems?

“nervous”(Triggers frequent changes to schedules/Tempts companies to violate lead times

40. Is MRP a “pull” or a “push” system?

Push

41. What is the cumulative lead time of a Bill of Materials?

Longest lead time path in the overall assembly

42. What is a Bill of Materials?

Product recipe

43. How does a level 3 Mistake Proof Solution differ from a level 1 Mistake proof Solution

Not completely foolproof—more of a warning than a physical barrier preventing defect/error

44. Develop an 3 tier MRP for a simple chair with wooden legs and brackets to attach the pieces