As logistics manager of Finn you are introducing central warehouse facilities that will supply regional warehouses in each (sales) region in order to lower the inventory (cost) and improve the delivery service to the customers. You also must make suggestions for an inbound transport budget (supplier to central warehouse facility).

Calculate the amount of inventory that needs to be kept assuming a safety stock of 10 days of supply plus an average cycle stock that equals 1,5 times the replenishment time (transport time from vendor to central warehouse).

Pallet weight: 650 kg/ per pallet; pallet size: 1,20 x 0,80 m; 30 pallets fit into a container or a truck Demand as per sales in each region EU North EU West EU East EU South North America South America location demand location demanda location demand location demand location demand location demand Copenhagen 5096 Venlo 40% Poznan 50% Bologna 40% Cincinatti 40% Riberao Preto 4096 Linkping 50% Mannheim 20% Prague 50% Lyon 4096 Charlotte 3096 Brasilia 30% Paris 40% Zagreb 20 Memphis 3046 Curitiba 30% in % of total sales per region Ingredients Ingredients Vendor Departure Logistics costs at Trucking time departure (days) vendor- Mix Country Port trucking Port handling port to port per container Hazel 15,00% Turkey Istanbul $110,00 $70,00 1 Macadamia 15,00% Australia Melbourne $280,00 $95,00 Cashew 15,00% West Africa Accra $70,00 $45,00 Raisins 20,00% Turkey Istanbul $110,00 $70,00 2 Cranberries 20,00% USA Oakland $220,00 $110,00 2 Chocolate 5,00% USA Oakland $220,00 $110,00 2 Banana 10,00% Costa Rica Puerto Limon $60,00 $50,00 1 NN Receiving ports per (Sales) Region Logistics costs at destination Port handling per trucking port- container central WH $130,00 $160,00 $120,00 $160,00 $120,00 $160,00 $90,00 $120,00 $110,00 $220,00 $90,00 $140,00 trucking time (days) port-CW 1 1 1 EU North Hamburg EU West Rotterdam EU East Hamburg EU South Genua North America New Jersey South America Santos (Brazil) 1 2 2 Freight rates Santos Melbourne Accra Istanbul Oakland Puerto Limon Hamburg $2.500,00 $3.100,00 $2.500,00 $2.400,00 $1.900,00 Sea freight per 40' Container (in $) to Rotterdam Genova New York $2.400,00 $1.900,00 $2.600,00 $3.000,00 $2.900,00 $3.400,00 $2.400,00 $1.200,00 $2.100,00 $2.200,00 $2.400,00 $1.800,00 $1.900,00 $2.000,00 $1.500,00 $2.600,00 $2.500,00 $2.300,00 $2.000,00 $1.800,00 Lead times Hamburg Rotterdam Genova New York Santos Port - to - port Melbourne Accra Istanbul Oakland Puerto Limon 37 Days 18 Days 24 Days 33 Days 17 Days 40 Days 18 Days 15 Days 31 Days 14 Days 41 Days 15 Days 12 Days 32 Days 22 Days 38 Days 24 Days 18 Days 14 Days 13 Days 45 Days 13 Days 24 Days 30 Days 17 Days Pallet weight: 650 kg/ per pallet; pallet size: 1,20 x 0,80 m; 30 pallets fit into a container or a truck Demand as per sales in each region EU North EU West EU East EU South North America South America location demand location demanda location demand location demand location demand location demand Copenhagen 5096 Venlo 40% Poznan 50% Bologna 40% Cincinatti 40% Riberao Preto 4096 Linkping 50% Mannheim 20% Prague 50% Lyon 4096 Charlotte 3096 Brasilia 30% Paris 40% Zagreb 20 Memphis 3046 Curitiba 30% in % of total sales per region Ingredients Ingredients Vendor Departure Logistics costs at Trucking time departure (days) vendor- Mix Country Port trucking Port handling port to port per container Hazel 15,00% Turkey Istanbul $110,00 $70,00 1 Macadamia 15,00% Australia Melbourne $280,00 $95,00 Cashew 15,00% West Africa Accra $70,00 $45,00 Raisins 20,00% Turkey Istanbul $110,00 $70,00 2 Cranberries 20,00% USA Oakland $220,00 $110,00 2 Chocolate 5,00% USA Oakland $220,00 $110,00 2 Banana 10,00% Costa Rica Puerto Limon $60,00 $50,00 1 NN Receiving ports per (Sales) Region Logistics costs at destination Port handling per trucking port- container central WH $130,00 $160,00 $120,00 $160,00 $120,00 $160,00 $90,00 $120,00 $110,00 $220,00 $90,00 $140,00 trucking time (days) port-CW 1 1 1 EU North Hamburg EU West Rotterdam EU East Hamburg EU South Genua North America New Jersey South America Santos (Brazil) 1 2 2 Freight rates Santos Melbourne Accra Istanbul Oakland Puerto Limon Hamburg $2.500,00 $3.100,00 $2.500,00 $2.400,00 $1.900,00 Sea freight per 40' Container (in $) to Rotterdam Genova New York $2.400,00 $1.900,00 $2.600,00 $3.000,00 $2.900,00 $3.400,00 $2.400,00 $1.200,00 $2.100,00 $2.200,00 $2.400,00 $1.800,00 $1.900,00 $2.000,00 $1.500,00 $2.600,00 $2.500,00 $2.300,00 $2.000,00 $1.800,00 Lead times Hamburg Rotterdam Genova New York Santos Port - to - port Melbourne Accra Istanbul Oakland Puerto Limon 37 Days 18 Days 24 Days 33 Days 17 Days 40 Days 18 Days 15 Days 31 Days 14 Days 41 Days 15 Days 12 Days 32 Days 22 Days 38 Days 24 Days 18 Days 14 Days 13 Days 45 Days 13 Days 24 Days 30 Days 17 Days