Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

  1. Which customer is the HIGHEST PERFORMING Net Profit ($) customer?
  2. Which customer is the WORST PERFORMING Net Profit ($) customer?
  3. Which MARKET LOCATION is the HIGHEST PERFORMING Net Profit ($) MARKET LOCATION?
  4. Which MARKET LOCATION is the WORST PERFORMING Net Profit ($) MARKET LOCATION?
  5. Should ABC Logistics abandon the London Market? Provide data and supporting reasons for your answer
  6. 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

  1. Delivery Cost = $1.00 per pallet per KM
  2. Ordering Cost
    1. $250 per Electronic order
    2. $500 per manual order

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Brand Management Building Measuring and Managing Brand Equity

Authors: Kevin Lane Keller

4th edition

9780273779414, 132664259, 273779419, 978-0132664257

More Books

Students also viewed these General Management questions