Logistics

1.Read Chapter 2 in your Textbook (Logistics and Information Technology)
Book: Contemporary Logistics, 11th edition, Paul R. Murphy and A. Michael Knemeyer, Pearson Prentice

Hall, ISBN:  978-0-13-295346-7

Chapter Objectives:
– To Understand the types of Information Management Systems
– To Understand the Internet’s Influence on Logistics
– To Understand Information Technology Challenges
Assignments:

1. Complete the seven questions for Case 2-1, “Just-in-Time in Kalamazoo” (Pages-38-40)  Submit these

questions in this assignment link and click submit when finished.
2.  Show your work using tables, charts, or math equations so I can provide feedback to you for correct

answers.

Helpful Information to complete this case.

The easiest way to do this problem is to try using a spreadsheet or make columns on paper and do it by

hand.  Make a list of all the Headings.  Here is the breakdown for the columns for spreadsheet

(Current system)
1- Items
2. Average Distance from vendor (in miles)
3. Number of units used each week
4. Current lot size purchased
5. Unit cost
6. Average freight cost per unit
7. Safety stock
8. Average inventory
9. Total inventory
10. Inventory cost
11. Inventory carrying charges
12. Inventory maintenance cost – Total this column to get your Total Inventory maintenance cost per

year.

Then do the same for the JIT system and  get your total inventory maintenance cost per year.

The spreadsheet columns for the JIT system will be:
1- item
2. JIT lot size
3. Unit cost
4. Average freight cost per unit (Surface)
5. Inventory maintenance cost – Total this column to get your Total inventory maintenance cost per

year.