Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Xim Distribution Services (KDS) distnbutes food purchased in bulk to smail revailers. The firm is divided into two divisions: Purchasing and Distroution Purchasing is responsibie

image text in transcribed
image text in transcribed
Xim Distribution Services (KDS) distnbutes food purchased in bulk to smail revailers. The firm is divided into two divisions: Purchasing and Distroution Purchasing is responsibie for ordering gocds from the manufacturer, recelving them, and then moving them to the ippropriate location in the warehouse. Disthbution ts responstble for taking orders from retailers, picking the products from the warehouse for the orders, and packaging the croers for shipment KDS has a posicy ot frang every order on the day of the order. If the firm is out of a particular itern, it will she a partal order and complete the prder when the item is back in stock Occasionally, an order will not have to be packaged if the tetaller chooses to take delivery at the kos loading fock. Distnbution has 29 employees who are responsible tor the actities, and all 29 are rraned to handle any of the three tasks. Each of these empioyees works 54 hours per week for 36 wheks. There is an a owance of 25 perceit of the employees time for training and ohier administrative tasks. The total costs of distribulon for the coming yeil are ertimated to be 5966,200 . When asked, the mariager of Distribution estrimated the foliowng times for each of the three acsivities - Toking orders 24 minutes. - Picking ordersizi minutes - Packaging orders 48 minutes Unul now, KDS used a commercial vendor to ship orders. The manager of Distribution believes the system described is too simple in address, ciedit and so on) The marrspel estimates, thy additional pme to total 44 minities: In addition, some ordess are quite complex This happens when a fetsiler ordersmany difterent itens in one ofder The manager estimates thot a complex order takes an addionel 34 minutes to pick, on dyetage. Required: a. What is the total time requed for fiking an ordee? b. Whist is the total time recuired for olcking en order? c. Compute the total cost of tiling a compex corder forms newretaller. Assume that all of the fiems in the order ate in stock and that the retaler wit not pick the ocdee up at vie kDS lasding dock (Round intormediate calculations ond final answer to 2 decimal ploces.) Until now, KDS used a commercial vendor to ship orders. The manager of Distribution believes the system described is too simple in two ways. First, if a retailer is ordering from KDS for the first time, Distribution has to take time to verify the Retailer details (shipping address, credit, and so on). The manager estimates this additional time to total 44 minutes. In addition, some orders are quite complex. This happens when a retailer orders many different items in one order. The manager estimates that a complex order takes an additional 34 minutes to pick, on average. Required: a. What is the total time required for taking an order? b. What is the total time required for picking an order? c. Compute the total cost of filling a complex order from a new retailer. Assume that all of the items in the order are in stock and that the retailer will not pick the order up at the KDS loading dock. (Round intermediate calculations ond final answer to 2 decimal

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

For Mowen/hansen/heitgers Cornerstones Of Managerial Accounting, 6th Edition, [instant Access]

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

6th Edition

1305280768, 9781305280762

More Books

Students also viewed these Accounting questions

Question

Discuss how S. Truett Cathys values shaped Chick-fil-As operation.

Answered: 1 week ago