====== Assignment 2 ====== This page is related to [[Inventory Management And Control]] * Source: //Supply Chain Management — A Logistics Perspective// * Due on Day 5, 25% of the final ===== Ludymila Card Imperium ===== Ludymila Card Imperium (LCI) of Toronto, Ontario, is a distributor of basketball cards to sports card retailers. Its market area encompasses most of Ontario, eastern Manitoba, and southern Quebec. The cards are printed in Vancouver, BC, and currently shipped to Toronto via motor carrier transportation. Ludymila Costa, vice president of logistics, has asked her staff to evaluate using air carrier service to ship the cards. San Perera, director of distribution, has collected the following information: * Annual demand: 7,200 cases of cards * Value (price): $101 per case * Unit weight: 25Kg per case * Inventory carrying cost (annual): 29% of the annual inventory value * Ordering cost to replenish inventory: $79 per order * In-transit inventory carrying cost (annual): 19% of the annual inventory value * Motor carrier rate: $1.20 per 50Kg * Transit time using motor carrier (parcel ground): 7 days * Cycle time using motor carrier (parcel ground): 10 days * Air carrier rate: $2.50 per 50Kg * Transit time using air carrier: 2 day * Cycle time using air carrier: 3 days ===== Case Questions ===== - What is the EOQ (economic order quantity) for LCI in units? In kilograms? (include the in-transit carrying cost) (See the Excel sheet for Ch. 12 in OM textbook. Thanks to Sehrish again for the pointer! 🤗) - What is the EOQ for LCI in units, not considering transportation-related costs? - What is the total cost for using motor carrier transportation? (see pp. 356-358 in SCM textbook for an example. Thanks Sehrish (2022) for the pointer in the book! 🤗) - What is the total cost for using air carrier transportation? - Which alternative should LCI use, motor or air? Why? ====== Your checklist before you submit ====== ++++Pre-flight checklist | * No coloured-text * No cover image * Cover page must include: * course name; * assignment number and title; * instructor’s name; * student’s First and Last name; * student number; * date; and * word-count. * Address all 5 questions * Answer all questions in detailed paragraphs (no one-liners; detailed explanations are needed) * Table of Contents must be included * Paper’s length range: min 350, max 450 words, excluding the covers, TOC, repeated questions, block-quotes, and the bibliography * Use headings and subheadings (do NOT rewrite each question in the “Headings.” That is not what headings are for). Heading numbers **must** correspond to the question numbers * Citations: [[https://www.zotero.org/styles?q=annotated|APA annotated bibliography]], in-line citations, and an [[citation#annotate_your_bibliography_references | annotated bibliography]] (the paper will be rejected if these are incorrect or incomplete) * Page numbers ++++ ====== Written Report Marking Scheme ====== ++++The marking scheme | ^ Criteria ^ Marks ^ | Cover-page includes assignment title, instructor’s name, course & assignment name, student’s first and last name, student number, date, subheading numbers correspond to the questions, and word count. | 1 | | Response to Q1 | 9 | | Response to Q2 | 9 | | Response to Q3 | 9 | | Response to Q4 | 9 | | Response to Q5 | 9 | | Extensive, valid, literature/library research from reliable sources in addition to the textbook (‘Google search’ is not a source, no Wikipedia articles), [[https://www.zotero.org/styles?q=annotated|APA annotated biblio. style]] in-line citations, an [[citation#annotate_your_bibliography_references | annotated bibliography]], correct format and structure followed (read [[citation]] for more info.) | 2 | | Correct spelling / proper grammar | 2 | | TOTAL POSSIBLE MARKS | 50 | | ANY form of plagiarism (e.g. any text from a not-credited source, any uncited block-quote, any uncited paraphrase, any text borrowed from your classmate’s paper, etc. Maximum amount of quotes in your paper must not exceed 10%. Violations will be reported to the campus director immediately. | -50 | | Late submission (penalty; mark deduction per day) | -20% | ++++ ====== Submitting Your Written Assignment ====== * Share a digital copy of your final paper with me via Google Docs (use my gmail address) * No late-submission will be accepted. Day 5 is the last day for this assignment (there will be a penalty for late submissions)