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Case 11-1 Let There Be Light Lampshade Company - Assignment Example

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This is arrived at by getting the volume of the one intermodal container and dividing by the volume of one shade. The number of shades for style B is 3916. This is got by dividing the volume of the one…
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Case 11-1 Let There Be Light Lampshade Company
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Case 11 Let There Be Light Lampshade Company From the case 11 the number of shades for style A is 2720 shades. This is arrived at by getting the volume of the one intermodal container and dividing by the volume of one shade. The number of shades for style B is 3916. This is got by dividing the volume of the one package box for the style B by the volume of one intermodal container (Chopra, and Meindl, 2013). This number is then multiplied by the number of shades contained in each package boxes which stands at 6 shades for style B. the number of shades for the style C contained in the intermodal container is the 6528 shades. This is arrived at by dividing the volume of the packaged box by the volume of one intermodal container (Wood, & Murphy, 2011). The amount got is multiplied by the number of Shades that are contained in each package boxes which in this case for the style C is 10. Again it is should be noted that the considerations made here are after the looking into the possible cost benefit analysis in terms of full truck load and the less than truck load issues n the shipments.
The total costs of delivering style A shades are $ 13,512. This is disintegrated into package cost which is $ 1632, the cost of manufacturing of the shades which is $ 10,880, the cost of transporting each container which stands at $ 1000. All these are encompassed into one whole shipment cost of $ 13, 512. The delivery costs for the style B shades stands at $ 21,885.60. This is split into package cost of 1305.60; there is also the cost of shades manufacture which stands at $ 19,580 and lastly the container shipment cost which is $ 1000 (Wood, & Murphy, 2011). Thirdly the delivery cost of the style C shades stands at $ 42,126.40. This is divided into three sets of costs which include; the package costs which stands at $ 1958.40, there is also the cost of manufacturing the shades which stands at $ 39168. The cost of shipment of the container follows with the tune of $ 1000.
It is imperative to note that as these calculations are presented, there is high inculcation of the fact that there is a high level of opportunity cost that have been forgone in order to come up with such solutions. This entails the restriction on the amount of pound that should not be exceeded when transporting a shipment of container across the ocean. This has created the impediment for the use of the container especially the containers that will have the style C shades (Chopra, and Meindl, 2013). As it stands now, the limit has to be set on the amount of shades that should be transported for the style C shades. This limit is deemed to reduce the amount being transported in one container for style C shades. The transcending effect of this is that the costs of shipping the style C containers have to be quite higher than when using the containers in shipping style A shades.
As a recommendation, the best style that I have to recommend here is the style A shades. One of the pertinent reasons for this choice is that that the general delivery cost is the least of all the three styles of shades. Is should also be noted that the style A shades are deemed to occupy the least space in the container and hence the container is deemed to package more of it than other. Lastly, there is no wastage of packing materials as the style A Shades is being packed (Wood, & Murphy, 2011).
Chopra, S. and Meindl, P. (2013). Supply Chain Management: Strategy, Planning, and Operation (5th ed.). Upper Saddle River, NJ: Pearson.
Wood, D.F. & Murphy, P.R., Jr. (2011). Contemporary Logistics (10th ed.). Upper Saddle River: NJ: Pearson. ISBN: 9780136110774 Read More
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