Supply Chain Management

Supply Chain Management
Name
The University of Sydney
Date
1] Summary of Problem Background
The Soda- Soda seeks to optimise the supply chain results there are four scenarios to distribute the soft drinks from Melbourne to the different areas under the four scenarios. In analyzing the warehousing and transport costs this helps to determine the process operations that are most efficient in the supply chain .the lower the costs the more the savings. The distribution centre optimization is also prioritized as the supply chain design affects the efficiency and cost savings. reducing the supply chain disruptions is associated with improved performance where risks are contained and high volume system are appropriate decentralized supply chains as there is specialized capacity (Chopra & Sodhi, 2014). In forecasting the total costs of the supply chain transporting to the different centres is considered as is the inventory position. As the supply chain network is complex, considering the risks in using the multiple distribution centres is necessary to determine the supply chain capability (Christopher, 2016). The improvements in service delivery are possible based on the results of the supply chain network modelling results and links the supplies in the six markets. In choosing the location for distribution for the products the modelling techniques are relevant to improve the logistics network based on the options available. The observations focus on the different cost items, including the transport cost, warehouse costs and inventory costs as well as the trade offs in the supply chain.
2] Calculations Methodology

Ranking:

4

1

3

2


Scenario 0

Scenario 1

Scenario 2

Scenario 3

Scenario 4

Total

$ 1,817,182

$ 1,638,962

$ 1,549,946

$ 1,601,456

$ 1,550,220

Change ($)

 

$ -178,220

$ -267,236

$ -215,726

$ -266,962

Change (%)

 

-10%

-15%

-12%

-15%







Transport

$ 1,153,946

$ 914,004

$ 720,763

$ 792,804

$ 631,800

Linehaul Direct to Customer

$ 989,037

$ 643,862

$ 313,498

$ 262,410

$ 29,325

Linehaul Inter-DC

$ -

$ 81,413

$ 177,799

$ 280,139

$ 295,590

Local Transport

$ 84,684

$ 120,074

$ 176,704

$ 220,622

$ 277,252

Shuttle

$ 80,225

$ 68,655

$ 52,763

$ 29,633

$ 29,633







Warehouse

$ 649,503

$ 709,244

$ 812,572

$ 790,478

$ 898,615

Fixed Weekly Charge

$ 135,154

$ 172,553

$ 258,353

$ 258,353

$ 344,153

Outbound Order Management Fee

$ 21,713

$ 22,273

$ 24,892

$ 28,462

$ 28,462

Pallet Storage (incl pallet hire)

$ 79,361

$ 92,126

$ 96,218

$ 95,295

$ 99,369

Case Receiving & Putaway

$ -

$ -

$ -

$ -

$ -

Pallet Receiving & Putaway

$ 40,186

$ 56,217

$ 51,032

$ 42,749

$ 43,011

Case Picking & Despatch

$ 342,182

$ 325,485

$ 336,675

$ 313,586

$ 329,703

Pallet Picking & Despatch

$ 3,143

$ 4,617

$ 3,652

$ 3,685

$ 4,960

Stretch Wrap

$ 27,764

$ 35,973

$ 41,751

$ 48,348

$ 48,957







Inventory Funding

$ 13,733

$ 15,714

$ 16,611

$ 18,175

$ 19,805

The line haul direct to customer is a primary transportation component after the pickup and the delivery to the customers. Since the cost depends on where the customers are located the longer the distance from Melbourne the more likely that the customers will be changed higher costs. a distribution- transportation approach that considers logistics planning improves supply chain management since the distribution and operation costs are considered to improve efficiency (Ivanov et al., 2015) On the other hand, the line haul Inter-DC was the sea freight fees and charges associated with transporting the products to the different location from Melbourne D.C Local transport represents expenses incurred when transporting within the state, and such costs like those in Perth when travelling to Western Australia are considered the local transport costs. The shuttling costs are associated with these products that are stored and then shuttled from the Melbourne D.C centre. The shuttle cost from Melbourne to other location $ 12 and this multiplied with the sum of pallets in Melbourne in the different scenarios and there 6,685.38 pallets with the allocation being different for the four scenarios.
The warehousing costs depend on the inventory of the Soda-Soda product, and rates to store the products. the first warehouse cost is The Fixed Weekly Charge depend on the costs for the active DC m...