Logistics case Essay

Stanley received multiple calls from guests complaining about late shipments for both truck and develop delays. out-migration delays were measured in days, non hours. Railcar delivery windows growthd from two to seven days, and overall truckload suffice levels fell to less than 85 percent on time. Due to rise in price of the transference cost for use the cost of goods sold rose from 11 to 19 percent. The transportation problems led to a subscribe by MAPs largest domestic guest. Stanley tells that even a 10 percent increase in parentage levels would reduce return on asset levels from 13.7 percent to 9.1 percent. MAPs take stock investment is 22 percent of total assets and inventory carrying costs are nearing 27 percent of inventory value, both of which are consistent with manu facturing industry norms. The outbound logistics is an essential primary activity of the value cooking stove no matter what industry. Question 2Agricultural commodities and harvest-festivals from t he midwestern United States are shipped to locations around the macrocosm. If global demand continues to grow, how entrust antithetic transportation modes (rail, truck and barge) be affected? How will these changes impact MAPs current supply chain strategies? processIf the global demand continues to grow then there will be a tough time for the agriculture products which is being shipped from the Midwest to all locations around the globe as if there is a rise in demand then costs related with the different means of transportation will increase and the service levels will most likely fall, mainly with rapture the goods through water ways as demand for containers are increased, the fuel costs are higher(prenominal) and even due to slow steaming.The single railcar shipping rates are as fast as truckload shipments which will lead to decline in on-time transportation service which will cause customer dis-satisfaction. MAPs service levels fell to less than 85% on time and the domesti c customer demand is increased and there are complaints from customers all over the globe regarding the delay in receiving their product due to the deregulation in transportation which will lead to a negative effect on its current supply chain, MAP should place supplier-owned inventory in nearby storage facility or by positioning warehouses around the globe if not will lose 100% of its business. Question 3Many factors influence location decisions. If MAP were to move a facility today, what factors would seem most grievous? Do MAPs past location decisions limit or enable their future opportunities? Would your suffice change if MAP was a large multi-national corporation? AnswerIf MAP were to relocate to any opposite place, two points should be kept in mind- Firstly, to relocate to areas where resources are in abundant as its the main source for their business. Secondly, transportation should be much easier and should be accessible to different areas. standoffishness from both su ppliers and customers are important as when it comes to the efficiency of an operation suppliers are involved and delivery of goods to customers or key infrastructure is just as important. Its better off if MAP does not relocate its facilities because in its current location in the Midwest it offers an abundance of corn and soyabean suppliers which is the main source of MAPs business. Since transportation is the main problem for MAP, but after Marys talk with various other Midwest shippers to better utilize the existing transportation infrastructure it looks like a opalescent future ahead. I believe a large organization would choose to locate in a quasi(prenominal) fashion, but would also strive to choose a location with easy access to rail and highways.Question 4Manly last-place LLC successfully enables modal shifts from truck to rail transportation, and specifically to unit-train pricing, for ethyl alcohol shippers producing single carload shipment sizes. What prevents MAP fro m realizing these same rate advantages? Can these challenges be overcome? How? AnswerMap is unable to realize these same advantages for a few reasons Poor model optimization. MAP is not located near a major national and international railroad hub. They are in fact only shipping single carloads, but an individual car costs a fair mensuration more when we are not speaking about a until-train. With the right partnership, I believe those problems could be overcome.Question 5Manly Terminal LLC offers the ethanol industry exciting supply chain solutions. are the ethanol industrys transportation needs similar to any other sectors? Could Manly Terminal expand to serve other industries? Which sectors should they grade? AnswerThe requirements for shipping ethanol sound very similar to what we believe it would take to ship corn syrup or soybean oil. Manly could service just about any liquid bulk product.Manly terminal are already located in the Midwest servicing corn refineries for ethanol . They can also service the corn refineries for other by-products to make corn sweetenings, refined corn feed products, starch, corn oil, ethanol and other bio-products. Manly terminal can target the sectors or industries who ship grains, biofuels/bioenergy and products involved in trans loading.