logistics

management

6. Collins and Godwin are managers of the Happag Lloyd shipping Company. The Company has a fleet of ships operating in thirteen different trades. The managers are contemplating on which trades actually generate most of their revenues and the trades that generate least revenue in order for them to know which trade to invest in more. They just employed you as a special advisor and you are asked to advise them. You are provided with the various types of Cargoes, their freight rate and annual volume. Assume the only model available for you to use is the ABC approach. [15 marks] Cargoes Freight rate Annual Volume (GHC) (Tons) A 0.60 250 B 14,17 600 8.50 100 90 1000 0.42 1200 42.86 350 G 154 500 H 0.60 2000 12.50 1000 17 1550 K 0.20 100 L 1.00 250 M 2.0 200 You are required to i. Use the ABC analysis to help them select trade to invest more in. ii. Draw a curve of percentage items and percentage value iii. Mark off from the curve the rational limits of A, B, and C categories