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Case Study Adc Answer

The document analyzes two options (A and B) for transporting 60,000 tins of milk powder by sea container from a supplier to a retailer. Under Option A, 7,450 tins can fit in a container initially, but the maximum allowed is 5,811 tins due to weight restrictions. Transporting the 60,000 tins would require 11 containers and cost $834,275 total. Option B allows 8,450 tins initially but the maximum is 5,746 tins per container. 11 containers would again be needed, costing a total of $830,531.78 to transport the 60,000 tins.

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594 views

Case Study Adc Answer

The document analyzes two options (A and B) for transporting 60,000 tins of milk powder by sea container from a supplier to a retailer. Under Option A, 7,450 tins can fit in a container initially, but the maximum allowed is 5,811 tins due to weight restrictions. Transporting the 60,000 tins would require 11 containers and cost $834,275 total. Option B allows 8,450 tins initially but the maximum is 5,746 tins per container. 11 containers would again be needed, costing a total of $830,531.78 to transport the 60,000 tins.

Uploaded by

LêMinhAnh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CASE STUDY LOGISTICS

1. How many tins of milk powder can be loaded into a container under Option A?
Tins volume: Vtin = R2 x h = 3,14 x (0,21/2)2 x 0,22 = 7,61607 x 10-3 (m3)
Container volume: Vcont = 2,28 x 2,12 x 11,84 = 57,2298 (m3)
Palletized load volume: Vpalletized = 1,067 x 1,067 x 1 = 1,1385 (m3)
      Tins per palletized load: 1,1385/(7,61607 x 10-3) = 149 (tins)
      Palletized load per container: 57,2298/1,1385 = 50 (palletized load)
Under Option A, a container can be loaded: 149 x 50 = 7.450 (tins)

2. Does the average payload exceed the threshold of total shipment weight under
Option A?
One tin weight: 3,3 (kg)
Weight per palletized load: (149 x 3,3) + 15 = 506,7 (kg) 
Total shipment weight = 506,7 x 50 = 25.335 (kg) > 20000 (kg) 
The average payload exceed the threshold of total shipment weight under Option A
because the total shipment weight could not exceed 20.000 kilograms per container 
Palletized load per container allowed: 20.000/506,7 = 39 (palletized load)
Tins per palletized load allowed: 39 x 149 = 5.811 (tins)
Therefore, under Option A, 5.811 tins of milk powder can be loaded into a container

3. What are the total costs of delivering the milk powder to the retailer under
Option A?
The number of palletized load: 60.000/149 = 403 (palletized loads)
The number of container: 403/39 = 10,32 => use 11 containers
One tin cost: (3 x 3) + 3 = 12 (USD)
One palletized cost: 12 x 149 + 25 = 1.813 (USD)
One container cost: 1.813 x 39 + 500 = 71.207 (USD)
Insurance costs: (71.207 x 11) x 3% = 23.498,31 (USD)
Ocean freight cost per container: 2.500 x 11 = 27.500 (USD)
Total costs = 71.207 x 11+ 27.500 + 23.498,31 = 834.275,31 (USD)
4. How many tins of milk powder can be loaded into a container under Option B?
Tins per palletized load: 149 + 20 = 169 (tins)
Palletized load per container: 57,2298/1,1385 = 50 (palletized load)
Under Option A, a container can be loaded: 169 x 50 = 8.450 (tins)

5. Does the average payload exceed the threshold of total shipment weight under
Option B? 
One tin weight: 3,3 (kg)
Weight per palletized load: (169 x 3,3) + 15 = 572,7 (kg) 
Total shipment weight = 572,7 x 50 = 28.635 (kg) > 20000 (kg) 
The average payload exceed the threshold of total shipment weight under Option B
because the total shipment weight could not exceed 20.000 kilograms per container 
Palletized load per container allowed: 20.000/572,7 = 34 (palletized load)
Tins per palletized load allowed: 34 x 169 = 5.746 (tins)
Therefore, under Option B, 5.746 tins of milk powder can be loaded into a container

6. What are the total costs of delivering the milk powder to the retailer under
Option B?
The number of palletized load: 60.000/169 = 356 (palletized loads)
The number of container: 356/34 = 10,47 => use 11 containers
One tin cost: (3 x 3) + 3,1 = 12,1 (USD)
One palletized cost: 12,1 x 169 + 25 = 2.069,9 (USD)
One container cost: 2.069,9 x 34 + 500 = 70.876,6 (USD)
Insurance costs: (70.876,6 x 11) x 3% = 23.389,278 (USD)
Ocean freight cost per container: 2.500 x 11 = 27.500 (USD)
Total costs = 70.876,6 x 11+ 27.500 + 23.389,278 = 830.531,878 (USD)

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