SCM 301

INDIVIDUAL ASSIGNMENT #3

TOTAL LANDED COST

Please answer the following questions including showing all of your work:

1) How many pounds of mango concentrate are required?

a. (2 points). In a month?

b. (2 points). How many in a year?

2) (5 points). In computing the Total Landed cost for mango concentrate, we are interested in the incrementalcost per unit (cost per pound) added along the supply chain, rather than the total cost added at each step along the chain (for example, total cost of ocean shipping). Why?

3) (10 points). Using some variation of business process mapping, graph out the mango concentrate supply chain focusing on when cost is added to the supply chain. (i.e. Display/draw the process from Papa Growers to Mom & Pop market, highlighting the points where cost is added to the process).

(4 points). Why would tracking this cost be important to International Fruit Distributors?

4) (45 points). Identify the individual cost components and the total cost of delivering the product from supplier to retailer. Identify each cost in terms of the incremental addition to the product cost (Hint: Express your answers in terms of cost per pound—not total cost). Present your findings in the table below using 4 significant digits. Yes, some of these may be very small numbers — but why might that be important?

(Hint: You should be able to identify 13 separate cost categories in this supply chain. 3 have been identified for you).

Identified Cost

Cost per Pound

Calculation

1. Original unit price

$0.3900

Given in the case.

2. Ocean Freight charge

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13. General and Administrative fees

Total Landed Cost (Sum of 1-13 above)

5) (4 points). What conclusion can you draw when comparing the total landed or delivered cost to the original purchase cost?

(4 points). What does this suggest about the importance of supply chain management?

6) Assume that Joyce Johnson has asked you recommend ways to cut the total landed cost of mango concentrate. Given your above analysis, identify three costs you would recommend for further study to cut or reduce. How might you accomplish that? Be specific and realistic in your ideas and provide the first steps you would take to make that happen! (Hint: Starting a new mango grove in San Diego is not a viable option. It would cost much more than $0.39 per pound to produce the raw product there, plus loose the unique flavor!).

a) (8 points)

Recommendation #1:

Strategy:

b) (8 points)

Recommendation #2:

Strategy:

c) (8 points)

Recommendation #3:

Strategy:

Case modified from Monczka, Trent, and Handfield, Purchasing and Supply Chain Management, 3rd edition, South-Western Publishing, 2005.

Our guarantees

Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more