STRATEGI DELIVERY moon Chem

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Delivery Strategy at MoonChem

John Kresge adalah Vice President Supply chain MoonChem, sebuah perusahaan manufaktur yang memproduksi bahan kimia khusus. Setelah meeting di MoonChem, dalam evaluasi kinerja financial diketahui bahwa perusahaan itu hanya meraih dua perputaran inventory setahun, lebih dari setengah inventory yang dimiliki ada dalam pengiriman (titipan) ke konsumennnya. Hal ini mengejutkan karena hanya 20% dari konsumen tersebut yang membawa inventory titipan. John bertanggungjawab atas inventory, sama halnya dengan biaya transportasi.Dia memutuskan untuk mencermati manajemen inventory titipan dan menyusun rencana yang tepat.

MoonChem Operations

MoonChem mempunyai delapan pabrik dan 40 distribution centers. Pabrik tersebut memproduksi bahan kimia dasar dan distribution center mencampurnya untuk membuat ratusan produk akhir yang memenuhi spesifikasi konsumen. Pada pasar bahan kimia khusus, MoonChem berusaha untuk mendiferensiasikan dirinya di wilayah Midwest dengan menyediakan inventori titipan kepada pelanggannya.

Perusahaan ingin menggunakan strategi ini secara nasional jika terbukti efektif. MoonChem membiarkan bahan kimia diperoleh tiap pelanggan di wilayah Midwest sebagai penitipan atau konsinyasi di tempat pelanggan. Pelanggan menggunakan bahan kimia sesuai yang merka butuhkan, dan MoonChem mengatur perlengkapan untuk memastikan ketersediaan. Pada situasi kebanyakan, konsumsi bahan kimia oleh konsumen sangat stabil. MoonChem memiliki penitipan inventory dan dibayar atas penggunaan bahan kimia yang telah mereka gunakan.

Distribution at MoonChem

MoonChem menggunakan Golden Trucking, truk pengangkut muatan penuh untuk semua pengiriman. Tiap truk mempunyai kapasitas 40.000 pounds, dan Golden memberikan tariff tetap atas asal dan tujuan, tidak melihat kuatntitas yang dikirimkan denga truk tersebut. MoonChem mengirimkan truk muatan penuh kepada tiap konsumen untuk melengkapi inventory titipan mereka.

The Illinois Pilot Study

John memutuskan untuk mencermati operasi distribusi. Dia focus kepada Negara bagian Illinois, yand disupplai dari Chicago distribution center. Dia memecah Illinois ke dalam kumpulan kode pos yang berdekatan seperti pada gambar. Dia membatasi perhatian pada wilayah Peoria, yang diklasifikasikan sebagai kode pos 615. Pada studi yang seksama pada wilayah ini ditemukan dua pelanggan besar, enam pelanggan medium, dan 12 pelanggan kecil. Konsumsi pertahun pada tiap tipe pelanggan seperti pada tabel. Golden memasang tarif $400 untuk tiap pengiriman dari Chicago ke Peoria, dan kebijakan MoonChem adalah mengirim truk muatan penuh untuk tiap pelanggan sesuai kebutuhan.

Customer Profile funtuk MoonChem di wilayah Peoria

Customer Type Number of Customer Consumtion

(Pounds per month)

Small 12 1000

Medium 6 5.000

Large 2 12.000

John mengecek dengan Golden untuk mencari tahu apa yang harus dilakukan untuk memasukkan pengiriman kepada beberapa pelanggan dalam satu muatan. Golden menginformasikan padanya bahwa mereka akan melanjutkan untuk memberikan tarif $350 per truk dan kemudian menambahkan $50 untuk tiap drop-off yang harus ditanggung oleh Golden. Oleh karena itu, jika Golden membawa truk yang harus dibuat untuk sekali pengiriman, total tarif sebesar $400. Bagaimanapun jika truk harus melakukan empat kali pengiriman , total tarif sebesar $550.

Tiap pound dari bahan kimia pada biaya penitipan MoonChem $1, dan holding cost 25%. John ingin menganalisa pilihan yang berbeda tiap distribusi yang tersedia di wilayah Peoria untuk menentukan kebijakan distribusi yang optimal. Studi lebih detail dari wilaya Peoria akan menyediakan blueprint untuk strategi distribusi yang direncanakan MoonChem untuk diterapkan secara nasional.

Analisis Pertanyaan

Annual Cost

Jenis biaya tahunan yang harus dikeluarkan oleh MoonChem adalah

Annual Holding Cost
Annual Shipment Cost

Komponen:

Biaya pengiriman (shipment cost): $350 per truk
Tambahan biaya pengiriman: $50 per drop-off
Holding cost:25%
Unit cost: $1 per pounds

Different delivery options

If each type of customers are delivered independently

Number of customers
1. Small = 12 Consumption per year = 1000 x 12 = 12.000 pounds
2. Medium = 6 Consumption per year = 5000 x 12 = 60.000 pounds
3. Large = 2 Consumption per year = 12.000 x 12 = 144.000 pounds
Holding cost, h = 0,25
Unit cost per pound, C = $1
Common transportation cost, S = $ 350 per truck
Transportation specific cost, si = $ 50 per drop off

Small Customers
- Combined shipment cost for 12 customers:

S* = S + s1 + …+ s12

S* = $ 350 + (12 x $ 50 ) = $ 950

Optimal Shipment Frequency:

n* = √∑^k_i=1Di h Ci = √(12 x 12.000 x 0,25 x $1) / 2 x $950

2 S*

= √36.000 / 1.900

= 4,3 ≈ 5 x

Annual Shipment Cost per Customers:

Annual Shipment Cost = 5 x ($950/12) = $395,8

Quantity Shipped for Each Customers:

Q = 12.000 / 5 = 2.400 pounds

Annual Holding Cost per Customers:

Annual holding cost per costumers = h Ci Q/2

= 0,25 x $1 x (2.400/2)

= $300

Total Capacity per truck:

Total capacity per truck = 12 x 2400 = 28.800

No added frequency

Medium Customers
- Combined shipment cost for 6 customers:

S* = S + s1 + …+ s6

S* = $ 350 + (6 x $ 50 ) = $ 650

Optimal Shipment Frequency:

n* = √∑^k_i=1Di h Ci = √(6 x 60.000 x 0,25 x $1) / 2 x $650

2 S*

= √90.000 / 1.300

= 8,32 ≈ 9 x

Annual Shipment Cost per Customers:

Annual Shipment Cost = 9 x ($650/6) = $975

Quantity Shipped for Each Customers:

Q = 60.000 / 9 = 6.666 pounds

Annual Holding Cost per Customers:

Annual holding cost per costumers = h Ci Q/2

= 0,25 x $1 x (6.666/2)

= $833,3

Total Capacity per truck:

Total capacity per truck = 6 x 6.666 = 39.996

No added frequency

Large Customers
- Combined shipment cost for 2 customers:

S* = S + s1 + s2

S* = $ 350 + (2 x $ 50 ) = $ 450

Optimal Shipment Frequency:

n* = √∑^k_i=1Di h Ci = √(2 x 144.000 x 0,25 x $1) / 2 x $450

2 S*

= √72.000 / 900

= 8,94 ≈ 9 x

Annual Shipment Cost per Customers:

Annual Shipment Cost = 9 x ($450/2) = $2.025

Quantity Shipped for Each Customers:

Q = 144.000 / 9 = 16.000 pounds

Annual Holding Cost per Customers:

Annual holding cost per costumers = h Ci Q/2

= 0,25 x $1 x (16.000/2)

= $4000

Total Capacity per truck:

Total capacity per truck = 2 x 16.000 = 32.000

No added frequency

Total Cost:

Small = ($395,8 x 12 ) + ($300 x 12) = $ 8.349,6

Medium = ($975x 6 ) + ($833,3 x 6) = $10.849,8

Large = ($2.025 x 2 ) + ($4000 x 2) = $12.050,0

Total $31.249.4

If small customers are delivered independently and medium & large customers are delivered jointly

Medium & Large Customers
- Combined shipment cost for 2 customers:

S* = S + s1 +…+ s8

S* = $ 350 + (8 x $ 50 ) = $ 750

Optimal Shipment Frequency:

n* = √∑^k_i=1Di h Ci = √(8 x 204.000 x 0,25 x $1) / 2 x $750

2 S*

= √408.000 / 1.500

= 16.5 ≈ 17 x

Annual Shipment Cost per Customers:

Annual Shipment Cost = 17 x ($750/8) = $1.593,75

Quantity Shipped for Each Customers:

Q = 204.000 / 17 = 12.000 pounds

Annual Holding Cost per Customers:

Annual holding cost per costumers = h Ci Q/2

= 0,25 x $1 x (12.000/2)

= $1.500

Total Capacity per truck:

Total capacity per truck = 8 x 12.000 = 96.000

Need added frequency

Shipment quantity for each truckload = 40.000/8 = 5.000

Increased in shipment frequency = 204.000/5000 = 40.8 ≈ 41 x

Increased in annual shipment per customers = 41 x ($750/8) = $3.843,75

Decreased in annual holding cost

Q = 204.000/41 = 4.976

Annual holding cost = 0,25 x 1 x (4.976/2) = $622

Total Cost:

Small = ($395,8 x 12 ) + ($300 x 12) = $ 8.349,6

Medium & Large = ($3.843,75x 8 ) + ($622 x 8) = $ 35.726,0

Total $44.075,6

If medium customer are delivered independently and small & large customers are delivered jointly

Small & Large Customers
- Combined shipment cost for 2 customers:

S* = S + s1 +…+ s14

S* = $ 350 + (14 x $ 50 ) = $ 1.050

Optimal Shipment Frequency:

n* = √∑^k_i=1Di h Ci = √(14 x 156.000 x 0,25 x $1) / 2 x $1.050

2 S*

= √546.000 / 2.100

= 16,1 ≈ 17 x

Annual Shipment Cost per Customers:

Annual Shipment Cost = 17 x ($1.050/14) = $1.275

Quantity Shipped for Each Customers:

Q = 156.000 / 17 = 9.175 pounds

Annual Holding Cost per Customers:

Annual holding cost per costumers = h Ci Q/2

= 0,25 x $1 x (9.175/2)

= $1.146,825

Total Capacity per truck:

Total capacity per truck = 14 x 9.175 = 128.450

Need added frequency

Shipment quantity for each truckload = 40.000/14 = 2.857

Increased in shipment frequency = 72.000/2.857 = 54,6 ≈ 55 x

Increased in annual shipment per customers = 55 x ($750/14) = $4.125

Decreased in annual holding cost

Q = 156.000/55 = 2.836

Annual holding cost = 0,25 x 1 x (2.836/2) = $354,5

Total Cost:

Medium = ($975x 6 ) + ($833,3 x 6) = $10.849,8

Small & Large = ($4.125 x 14 ) + ($354,5 x 14) = $ 62.713,0

Total $73.562,8

If Large customer are delivered independently and Medium & Small customers are delivered jointly

Medium & Small Customers
- Combined shipment cost for 2 customers:

S* = S + s1 +…+ s18

S* = $ 350 + (18 x $ 50 ) = $ 1.250

Optimal Shipment Frequency:

n* = √∑^k_i=1Di h Ci = √(18 x 72.000 x 0,25 x $1) / 2 x $1.250

2 S*

= √324.000 / 2.500

= 11,38 ≈ 12 x

Annual Shipment Cost per Customers:

Annual Shipment Cost = 12 x ($1.250/12) = $833,3

Quantity Shipped for Each Customers:

Q = 72.000 / 12 = 6.000 pounds

Annual Holding Cost per Customers:

Annual holding cost per costumers = h Ci Q/2

= 0,25 x $1 x (6.000/2)

= $750

Total Capacity per truck:

Total capacity per truck = 12 x 6.000 = 72.000

Need added frequency

Shipment quantity for each truckload = 40.000/12 = 3.333

Increased in shipment frequency = 72.000/3.333 = 21.6 ≈ 22 x

Increased in annual shipment per customers = 22 x ($1.250/18) = $1.527,8

Decreased in annual holding cost

Q = 72.000/22 = 3.273

Annual holding cost = 0,25 x 1 x (2.836/2) = $409,125

Total Cost:

Large = ($2.025 x 2 ) + ($4000 x 2) = $12.050,0

Small & Medium = ($1.527,8 x 18 ) + ($409,125 x 18) = $ 34.864,65

Total $46.914,65

If all type of customers are delivered jointly

Combined shipment cost for 20 customers:

S* = S + s1 +…+ s20

S* = $ 350 + (20 x $ 50 ) = $ 1.350

Optimal Shipment Frequency:

n* = √∑^k_i=1Di h Ci = √(20 x 216.000 x 0,25 x $1) / 2 x $1.350

2 S*

= √1.080.000 / 2.700

= 20 x

Annual Shipment Cost per Customers:

Annual Shipment Cost = 20 x ($1.350/20) = $1.350

Quantity Shipped for Each Customers:

Q = 216.000 / 20 = 10.800 pounds

Annual Holding Cost per Customers:

Annual holding cost per costumers = h Ci Q/2

= 0,25 x $1 x (10.800/2)

= $1.350

Total Capacity per truck:

Total capacity per truck = 20 x 10.800 = 216.000 pounds

Need to add frequency

Shipment quantity for each truckload = 40.000/20 = 2.000

Increased in shipment frequency = 216.000/2000 = 108 x

Increased in annual shipment per customers = 108 x (1.350/20) = $7.290

Decreased in annual holding cost

Q = 216.000/108 = 2000

Annual holding cost = 0,25 x 1 x (2000/2) = $250

Total Cost = ($7.290 x 20) + ($250 x 20) = $150.800

Summary

Scenario	Total Cost
If each type of customers are delivered independently	$31.249,4
If small customer are delivered independently and medium & large customers are delivered jointly	$44.075,6
If medium customer are delivered independently and small & large customers are delivered jointly	$73.562,8
If Large customer are delivered independently and Medium & Small customers are delivered jointly	$46.914,65
If all type of customers are delivered jointly	$150.800

Conclusion:

From the calculation above we got the lowest annual cost is $24.399,6. Delivery option that we recommend to use for MoonChem is independent delivery for small customers and joint delivery for medium & large customers.