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

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), APA annotated biblio. style in-line citations, an 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)

Supply Chain Management Wiki

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Assignment 2

Ludymila Card Imperium

Case Questions

Your checklist before you submit

Written Report Marking Scheme

Submitting Your Written Assignment

Supply Chain Management Wiki

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Table of Contents

Assignment 2

Ludymila Card Imperium

Case Questions

Your checklist before you submit

Written Report Marking Scheme

Submitting Your Written Assignment

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