Spartan plastics provides components to assembly plants in, Ask an Expert

Management Studies

Spartan Plastics provides components to assembly plants in the automobile industry. Currently, they ship directly from their plant in St. Louis, Missouri, to plants in Lansing, Michigan; Toledo, Ohio; and eight assembly plants surrounding Detroit, Michigan. In total, there are 10 assembly plants that each receives approximately 3,000 pounds per day in shipments. Currently, the company ships LTL from its plant to each assembly plant for a cost of $0.0013 per pound per mile. The company is considering two transportation alternatives to reduce cost.The first alternative is using a milk-run approach where a truckload begins in St.Louis, stops in Lansing, then the Detroit plants, and finally Toledo. The transportation cost for the milk-run approach would be $1.30 per truck mile plus $100/stop, not including the final stop in Toledo. The second alternative is to consolidate a truckload to Ypsilanti, Michigan, and then cross-dock the components for delivery to the assembly plant by the logistics provider. The truckload cost is still $l.30 per mile, and the cost per delivery to each assembly plant from Ypsilanti is $200.

a. What are the cost characteristics of each delivery option? Ignore the distance

b. What are the qualitative and service characteristics of each delivery option?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92185247

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 a define the eight 8 dynamics of group thinkb discuss the

1. A) Define the eight (8) dynamics of Group Think. B) Discuss the eight dynamics in terms of the “Group Think Process”: where excessive alcohol consumption is involved. 2. Discuss how alliances can affect the marketing ...

1 which kind of restaurant is likely to have the greatest

1. Which kind of restaurant is likely to have the greatest productivity per hour? Which will require the most advertising and promotion and the most dining room space per customer? Which has the greatest likelihood of th ...

I need an informative speech about convenience stores are

I need an informative speech? about Convenience stores are different than gas stations. Minimum of 3 research sources. A speaking outline is to be developed from the preparation outline. The speech is to be delivered fro ...

An 85-year-old woman named harriet passes away her will

An 85-year-old woman named Harriet, passes away. Her will, executed 1 year prior to her death, directs that her entire estate should pass to the home-health care worker who assisted her the last two years of her life. Ha ...

1 when walmart decided to incorporate grocery stores into

1. When Walmart decided to incorporate grocery stores into some locations and created “supercenters,” was this a business-level of differentiation or a corporate strategy of diversification? Explain your answer. In your ...

Observational exercisemanaging conflictpurpose1 to become

Observational Exercise Managing Conflict Purpose 1. To become aware of the dimensions of interpersonal conflict 2. To explore how to use Fisher and Ury's (1981) method of principled negotiation to address actual conflict ...

1 nepa requires that the eis containan analysis of the

1. NEPA requires that the EIS contain: an analysis of the relationship between local short-term uses of the environment and the maintenance and enhancement of long-term productivity. reversible and retrievable commitment ...

Johnson corporation has the following information about a

Johnson Corporation has the following information about a product that it carries in stock: Average demand = 60 units per day Average lead time = 10 days Item unit cost = $77 for orders of less than 400 units Item unit c ...

When looking at the life of a project plan it is useful to

When looking at the life of a project plan, it is useful to graph and outline the cost variance (CV), and schedule variance (SV). Determining progress, or lack of progress, provides essential information to assess a give ...

Do you remember jay leibhempski from the first test he was

Do you remember Jay Leibhempski from the first test? He was the guy who was injured in a gas explosion while smoking a marijuana cigarette as his neighbor was looking for Marcellus shale gas. He received a large settleme ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert