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ASSIGNMENT 3 LOGISTICS MANAGEMENT (QMT 756) GROUP MEMBERS SITI HAJAR ABU BAKAR ZAMALA JAFFAR SUBMITTED DATE: twentieth APRIL 2012 fitting 3 PortaCom manufactures personal computers and related equipment. The company receives 15,000 posts per grade with pretax profit per building block is $100 and pretax profit per narrate is $2500. come sale per club is $10000 with invoice implication per decree is $250. Out of the add together orders 15 per centum were broken and only 70 share of the customers accepts backorder. The handling monetary prise inclusive of administration and transportation cost is $25 per order on average. At the same prison term 30 percent of the incomplete orders were cancelled. The product that has the highest stockout percentage is the superintend; with the unit of measurement cost of $300 and its selling price of $450. Average stockout per order is 0.5 units of proctor and total demand for the monitor is one vitamin C f ifty units per day. The average Order Cycle time for the monitor is 4 days with standard deviation of 2 days. PortaCom does non make a warehouse hence cost of retentiveness the stocktaking per unit is as high as 30 percent of the product cost. In order to fulfill the customers orders, PortaCom tested to rush along the shipment by having the products being line of descent freighted at special cost of $1000 per 5 units of shipment.

found on the supra profile, do the sensitivity analysis ground on dish up aim as the accusative function. The following items can be part of your calculations: (1) Estimat ed cost per stockout (2) coin Flow Lost (! 3) Safety phone line level with regards to improvement in OCT (4) Post Sale Logistics Support NO 1: ESTIMATED COST PER STOCKOUT * Order fill rate is 85%: Estimated cost per stockout =[Back order] + [Lost sale] + [Lost customer] =[70% x (15% x 15000 x $25)] + [30% x (15% x 15000 x $10000)] + [0] =[70% x $56,250] + [30% x $22,500,000] =$39,375 + $6,750,000 =$6,789,375 *...If you want to get a full essay, order it on our website: BestEssayCheap.com

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