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ABC Logistics is a Toronto-based logistics company with customers in 5 key Southern Ontario markets, London, Kitchener, Milton, Downtown Toronto, and Scarborough. In view of
ABC Logistics is a Toronto-based logistics company with customers in 5 key Southern Ontario markets, London, Kitchener, Milton, Downtown Toronto, and Scarborough.
In view of the trends in the Scarborough Market the company is planning to focus on capturing the growth in this market and probably drop the London market given its distance away from the Toronto base.
Build a Cost-To-Serve Analysis Table to compare each customer, using the Supply Chain operational data that has been sourced from ABC's WMS, TMS and Order Management System and answer the following questions:
- Which customer is the HIGHEST PERFORMING Net Profit ($) customer?
- Which customer is the WORST PERFORMING Net Profit ($) customer?
- Which MARKET LOCATION is the HIGHEST PERFORMING Net Profit ($) MARKET LOCATION?
- Which MARKET LOCATION is the WORST PERFORMING Net Profit ($) MARKET LOCATION?
- Should ABC Logistics abandon the London Market? Provide data and supporting reasons for your answer
- Should ABC Expand into the Scarborough Market? Provide data and supporting reasons for your answer
USE THE FOLLOWING ASSUMPTIONS AND WMS, TMS, Order Management system additional data
ASSUMPTIONS
- Delivery Cost = $1.00 per pallet per KM
- Ordering Cost
- $250 per Electronic order
- $500 per manual order