QUESTION #2(75 points):On a second page identify the cost of each activity and the total delivered cost PER UNITfor A, B, and C items for each proposed channel.
Avg Avg Avg Class #SKUS Cost Price Qty Inventory per unit per unit per in All Inventory at Store at Store Store Stores Turnover A 1,800 $100.00 $141.70 3.34 $601,200 1.61% B 3,600 $25.00 $35.43 20.31 $1,827,900 3.22x 12,600 $5.00 $7.09 64.28 $4,049,640 9.73x TOTAL 18,000 $18.50 $6,478,740 3.83x NOTE: Inventory in the DC has been pre-allocated to each store's inventory and orders "So in conclusion," stated COO Grimaldo, "if we use the North American Retail Hardware Association benchmark data for hardware stores to see how we are doing, Joiner & Sons Hardware is actually doing quite well." Activity Based Costing (All costs "per unit" except for shipping) TRADITIONAL BOPUS BODFS BOODC x Citems 34.8% 32.1% X X X X Bitems 34.85 32.1% 3.22% 8.97 525.00 A Items 34.8% 32.1% 1.61 3721 $100.00 $14170 X X X 2 X X X X X X X X X X X x x $5.00 $35.43 $7.09 $0.24 X X X X X X $0.12 $0.24 $0.00 $0.24 $0.10 $0.32 $0.06 6% x x x X X Annual ICC Store Annual ICC Distribution Center (BODOC only) Annual Turnover Average shipment weight is) Average Unit Cost Average Unit Price Customer Service Online Customer Service Retail Store Operations DC Operations DC to Ship Direct to Customers process Operations Retail Stores Packaging for LTL/Small Packaging shipments Packaging for T shipments Return Rate for Items Fulfiled from DC Return Rate for tems Fulfiled from Retail Store Return Rate for Items Sold or Picked up at Retal Store Returns cost to process Sales Increase projected Additional Customer purchase when picking up an order Sales increase projected due to new BOODC channel Sales increase projected due to new BOOFS channel Sales increase projected due to new BOPUS dannel Shipping DC to Store TL [per pound, Shipping LTL/Small package DC to Customer maximum 225 miles) per pound Shipping LTL/Small package Retail to Customer maximum 25 miles per pound System Support/Management for online ordering X $0.48 $0 12 $0.83 $0.60 $1.12 $0.12 18 11% 5% $1.18 18.2 5.08 50.18 S. 35 50.10 50.42 $0.30 sa 53 50.08 12% 2% 3% 50.97 29.3% 42% 4.0% X X X X X X X 15.3% 1% $0.76 55.7% 0.5% 0.5% 25.0% $0.27 $2.71 $2.70 50.17 X X X x 7.0% $0.07 $0.12 $0.24 Sa 17 50.19 $0.92 $0.63 50.17 X X X Avg Avg Avg Class #SKUS Cost Price Qty Inventory per unit per unit per in All Inventory at Store at Store Store Stores Turnover A 1,800 $100.00 $141.70 3.34 $601,200 1.61% B 3,600 $25.00 $35.43 20.31 $1,827,900 3.22x 12,600 $5.00 $7.09 64.28 $4,049,640 9.73x TOTAL 18,000 $18.50 $6,478,740 3.83x NOTE: Inventory in the DC has been pre-allocated to each store's inventory and orders "So in conclusion," stated COO Grimaldo, "if we use the North American Retail Hardware Association benchmark data for hardware stores to see how we are doing, Joiner & Sons Hardware is actually doing quite well." Activity Based Costing (All costs "per unit" except for shipping) TRADITIONAL BOPUS BODFS BOODC x Citems 34.8% 32.1% X X X X Bitems 34.85 32.1% 3.22% 8.97 525.00 A Items 34.8% 32.1% 1.61 3721 $100.00 $14170 X X X 2 X X X X X X X X X X X x x $5.00 $35.43 $7.09 $0.24 X X X X X X $0.12 $0.24 $0.00 $0.24 $0.10 $0.32 $0.06 6% x x x X X Annual ICC Store Annual ICC Distribution Center (BODOC only) Annual Turnover Average shipment weight is) Average Unit Cost Average Unit Price Customer Service Online Customer Service Retail Store Operations DC Operations DC to Ship Direct to Customers process Operations Retail Stores Packaging for LTL/Small Packaging shipments Packaging for T shipments Return Rate for Items Fulfiled from DC Return Rate for tems Fulfiled from Retail Store Return Rate for Items Sold or Picked up at Retal Store Returns cost to process Sales Increase projected Additional Customer purchase when picking up an order Sales increase projected due to new BOODC channel Sales increase projected due to new BOOFS channel Sales increase projected due to new BOPUS dannel Shipping DC to Store TL [per pound, Shipping LTL/Small package DC to Customer maximum 225 miles) per pound Shipping LTL/Small package Retail to Customer maximum 25 miles per pound System Support/Management for online ordering X $0.48 $0 12 $0.83 $0.60 $1.12 $0.12 18 11% 5% $1.18 18.2 5.08 50.18 S. 35 50.10 50.42 $0.30 sa 53 50.08 12% 2% 3% 50.97 29.3% 42% 4.0% X X X X X X X 15.3% 1% $0.76 55.7% 0.5% 0.5% 25.0% $0.27 $2.71 $2.70 50.17 X X X x 7.0% $0.07 $0.12 $0.24 Sa 17 50.19 $0.92 $0.63 50.17 X X X
