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Key Electronics

This document analyzes sourcing and warehousing for different SKUs across locations. It provides data on total demand, unit costs, shipping costs, order costs, economic order quantities, reorder points, and lead times for each SKU and location. The goal is to determine the optimal sourcing strategy by analyzing costs and service levels for local, domestic, and international sourcing options.

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Aaditya Vasnik
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244 views10 pages

Key Electronics

This document analyzes sourcing and warehousing for different SKUs across locations. It provides data on total demand, unit costs, shipping costs, order costs, economic order quantities, reorder points, and lead times for each SKU and location. The goal is to determine the optimal sourcing strategy by analyzing costs and service levels for local, domestic, and international sourcing options.

Uploaded by

Aaditya Vasnik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

KM SKU Sourcing and Warehousing Analysis

Total Demand Annual Demand Base Unit Cost Weight(lbs) Volume(cu. Ft)
US 1800 21600 0.41 0.1 0.016
Batteries Asia 1800 21600 0.4 0.1 0.016
Local 1800 21600 0.8 0.1 0.016
US 115 1380 116.78 8.82 2.08
TV Asia 115 1380 115.01 8.82 2.08
Local 115 1380 129.17 8.82 2.08
US 675 8100 0.38 0.01 0.043
Cable Asia 675 8100 0.37 0.01 0.043
Local 675 8100 0.66 0.01 0.043
US 152 1824 108.09 0.6 0.13
Cell-phone Asia 152 1824 106.67 0.6 0.13
Local 152 1824 128 0.6 0.13
US 125 1500 93.33 8.08 1.36
Air purifier Asia 125 1500 91.67 8.08 1.36
Local 125 1500 116.67 8.08 1.36
US 30 360 75 16.5 3.5
Karaoke MachineAsia 30 360 73.61 16.5 3.5
Local 30 360 108.33 16.5 3.5
US 108 1296 8.46 1.23 0.2
Calculator Asia 108 1296 8.3 1.23 0.2
Local 108 1296 10.42 1.23 0.2
US 540 6480 8.41 0.96 0.08
Surge protector Asia 540 6480 8.21 0.96 0.08
Local 540 6480 13.33 0.96 0.08
US 910 10920 4.46 1.3 0.14
Telephone Asia 910 10920 4.37 1.3 0.14
Local 910 10920 6.83 1.3 0.14
US 38 456 120.33 3 0.16
Radio Asia 38 456 118.38 3 0.16
Local 38 456 148.23 3 0.16
s
Shipping Cost Order Costs
0.14 US 4.86
2.05*Volume(cu. Ft) +0.15*(weight lbs) Asia 12.6
0 Local 0.28

Total shipping cost Total order cost (Fixed-C0) Labeling cost Duty Total variable cost {c}
0.014 4.86 0.14 18% 0.6378
0.0448 12.6 0.02 18% 0.5368
0 0.28 0 0% 0.8
1.2348 4.86 0.14 30% 153.1888
5.3224 12.6 0.02 30% 154.8554
0 0.28 0 0% 129.17
0.0014 4.86 0.14 10% 0.5594
0.08935 12.6 0.02 10% 0.51635
0 0.28 0 0% 0.66
0.084 4.86 0.14 35% 146.1455
0.3385 12.6 0.02 35% 144.363
0 0.28 0 0% 128
1.1312 4.86 0.14 15% 108.6007
3.7576 12.6 0.02 15% 109.1981
0 0.28 0 0% 116.67
2.31 4.86 0.14 50% 114.95
9.155 12.6 0.02 50% 119.59
0 0.28 0 0% 108.33
0.1722 4.86 0.14 25% 10.8872
0.5576 12.6 0.02 25% 10.9526
0 0.28 0 0% 10.42
0.1344 4.86 0.14 13% 9.7777
0.2792 12.6 0.02 13% 9.5765
0 0.28 0 0% 13.33
0.182 4.86 0.14 23% 5.8078
0.443 12.6 0.02 23% 5.8381
0 0.28 0 0% 6.83
0.42 4.86 0.14 20% 144.956
0.688 12.6 0.02 20% 142.764
0 0.28 0 0% 148.23
=SQRT((2*D9*I9)/(M9*L9)) =(L9*D9)+(I9*D9/N9)+(M9*L9*0.5*N9)
EOQ = SQRT((2*D*Co)/(h*C)) TC = DCo/Q* + Q*hC/2

h EOQ Total Cost


25% 1147.49 13959.45
25% 2013.96 11865.15
25% 245.93 17329.19
25% 18.71 212117.27
25% 29.97 214860.76
25% 4.89 178412.57
25% 750.32 4636.07
25% 1257.48 4344.76
25% 165.80 5373.36
25% 22.03 267374.23
25% 35.69 264606.10
25% 5.65 233652.79
25% 23.17 163530.22
25% 37.21 164812.99
25% 5.37 175161.53
25% 11.03 41699.11
25% 17.42 43573.20
25% 2.73 39072.69
25% 68.03 14294.98
25% 109.21 14493.61
25% 16.69 13547.80
25% 160.52 63751.88
25% 261.16 62680.98
25% 33.00 86488.37
25% 270.38 63813.75
25% 434.22 64385.80
25% 59.84 74685.78
25% 11.06 66500.71
25% 17.94 65740.80
25% 2.63 67690.16
Sigma LT (daily) Leadtime
US 1.3 Local 3
Asia 7 Asia 65
Local 0 US 14

Safety Stock = z * sigma * D ROP = d * LT + Safety Stock

Mean LT Service LevZ (based on Sigma LT SAFETY STOCK ROP


14 98% 2.06 1.3 160.68 1000.68
65 98% 2.06 7 865.20 4765.20
3 98% 2.06 0 0.00 180.00
14 98% 2.06 1.3 10.27 63.93
65 98% 2.06 7 55.28 304.44
3 98% 2.06 0 0.00 11.50
14 90% 1.28 1.3 37.44 352.44
65 90% 1.28 7 201.60 1664.10
3 90% 1.28 0 0.00 67.50
14 98% 2.06 1.3 13.57 84.50
65 98% 2.06 7 73.06 402.39
3 98% 2.06 0 0.00 15.20
14 95% 1.65 1.3 8.94 67.27
65 95% 1.65 7 48.13 318.96
3 95% 1.65 0 0.00 12.50
14 95% 1.65 1.3 2.15 16.15
65 95% 1.65 7 11.55 76.55
3 95% 1.65 0 0.00 3.00
14 95% 1.65 1.3 7.72 58.12
65 95% 1.65 7 41.58 275.58
3 95% 1.65 0 0.00 10.80
14 95% 1.65 1.3 38.61 290.61
65 95% 1.65 7 207.90 1377.90
3 95% 1.65 0 0.00 54.00
14 98% 2.06 1.3 81.23 505.90
65 98% 2.06 7 437.41 2409.07
3 98% 2.06 0 0.00 91.00
14 95% 1.65 1.3 2.72 20.45
65 95% 1.65 7 14.63 96.96
3 95% 1.65 0 0.00 3.80
Service Level
98% 2.06
95% 1.65
90% 1.28

= d * LT + Safety Stock

TOTAL COST
13985.0672 US 913233.5
11981.2633 Asia 919714.4
17329.1854 Local 891414.2
212510.421
217000.732
178412.574
4641.30772
4370.78384
5373.35763
267869.975
267242.935
233652.793
163772.87
166126.775
175161.527
41760.7512
43918.5137
39072.6907
14315.996
14607.4633
13547.8011
63846.2572
63178.7194
86488.3681
63931.6946
65024.2071
74685.7847
66599.1752
66262.9591
67690.158
Total Demand
Annual demand (pallets)
Annual Demand EOQ
US 1800 22 21600 1147.49
Batteries Asia 1800 22 21600 2013.96
Local 1800 22 21600 245.93
US 115 173 1380 18.71
TV Asia 115 173 1380 29.97
Local 115 173 1380 4.89
US 675 24 8100 750.32
Cable Asia 675 24 8100 1257.48
Local 675 24 8100 165.80
US 152 15 1824 22.03
Cell-phone Asia 152 15 1824 35.69
Local 152 15 1824 5.65
US 125 188 1500 23.17
Air purifier Asia 125 188 1500 37.21
Local 125 188 1500 5.37
US 30 91 360 11.03
Karaoke MachineAsia 30 91 360 17.42
Local 30 91 360 2.73
US 108 17 1296 68.03
Calculator Asia 108 17 1296 109.21
Local 108 17 1296 16.69
US 540 33 6480 160.52
Surge protector Asia 540 33 6480 261.16
Local 540 33 6480 33.00
US 910 95 10920 270.38
Telephone Asia 910 95 10920 434.22
Local 910 95 10920 59.84
US 38 5 456 11.06
Radio Asia 38 5 456 17.94
Local 38 5 456 2.63
663
Safety Stock = z * sigma * D ROP = d * LT + Safety Stock

SAFETY STOCK EOQ+Safety stock ROP Units/Pallet


160.68 1308.17 160.68 1000
865.20 2879.16 865.20 1000
0.00 245.93 0.00 1000
10.27 28.98 10.27 8
55.28 85.25 55.28 8
0.00 4.89 0.00 8
37.44 787.76 37.44 350
201.60 1459.08 201.60 350
0.00 165.80 0.00 350
13.57 35.60 13.57 128
73.06 108.75 73.06 128
0.00 5.65 0.00 128
8.94 32.11 8.94 8
48.13 85.34 48.13 8
0.00 5.37 0.00 8
2.15 13.18 2.15 4
11.55 28.97 11.55 4
0.00 2.73 0.00 4
7.72 75.75 7.72 80
41.58 150.79 41.58 80
0.00 16.69 0.00 80
38.61 199.13 38.61 200
207.90 469.06 207.90 200
0.00 33.00 0.00 200
81.23 351.61 81.23 115
437.41 871.62 437.41 115
0.00 59.84 0.00 115
2.72 13.78 2.72 100
14.63 32.57 14.63 100
0.00 2.63 0.00 100
Safety Stock

Units/Pallet No. of Pallets Total Pallets


1.31 2.00 US 26.00
2.88 3.00 Asia 53.00
0.25 1.00 Local 10.00
3.62 4.00
10.66 11.00
0.61 1.00
2.25 3.00
4.17 5.00
0.47 1.00
0.28 1.00
0.85 1.00
0.04 1.00
4.01 5.00
10.67 11.00
0.67 1.00
3.29 4.00
7.24 8.00
0.68 1.00
0.95 1.00
1.88 2.00
0.21 1.00
1.00 1.00
2.35 3.00
0.16 1.00
3.06 4.00
7.58 8.00
0.52 1.00
0.14 1.00
0.33 1.00
0.03 1.00

72.15 89.00
new warehouse

Rent 12500
sAlary 8450

Total 20950

3PL is cheaper. Also, Local appears


cheapest, with US slightly cheaper than
Asia
3PL

Asia US LocAL
6.5 Rec cost 4309.5 4309.5 4309.5
11.25 shipping co 1462.5 1462.5 1462.5
4 storage cos 11024 5408 2080

Total 16796 11180 7852

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