DHL Supply Chain The Case Solution
Problem Statement
DHL supply chain has been obligated to ship the product i.e. 32” and 42” LCT TVs to distribution center being situated in Shanghai, according to the proposed budget or criteria, thereby reducing the carbon emission since it has been achieving a reduction of carbon emission, and improving environmental performance as a whole.
Remarkably, 530000 units of 32” LCD TV with 0.022 weight and 920000 units of 42” LCD TV with 0.0165 weight have been required to be shipped under the budget of CNY 3 billion, also the tax incentive would be given in case of adopting certain environmentally responsible practices. It is one of the government strategies, taken keen interest in reducing the carbon emission to protect the environment from climate change, because it has serious and inevitable consequences for environment as well as for human.
Analysis
There is growing census of the carbon emissions including carbon dioxide emissions and other green house emissions, if it tends to lefty unchecked, it would most probably lead to the major changes in the climate system of the earth. Government has been under pressure enacting the legislation in order to curb the emission amount to greater extent.
Organization all over the world have been responding to the threat of such legislation, not only this but to the concern have been raised by their own shareholders or consumers, have been undertaking number of initiatives for the purpose of reducing their carbon footprint. Thus, the initiatives have been focusing for most part on reducing the emission due to the involved physical processes.
By using widely used and relatively simple models, it would be illustrated how carbon emissions concerns would be incorporated into the operational decision making pertaining to production, procurement inventory management. It has been shown, by associating the parameter of carbon emission with number of decision variables.
With the extensive inputs from the dissertation, the model proposed in order to reflect a picture of the effective supply chain management within a given budget, in consequence to reduce the carbon emission to receive tax bracket in a form of tax incentive. The shipment process has been planned by considering the modes of transportation including Regular air, Air express, Road, Road LTL, Road network, Rail and Water. The production of the LCD TV have been given to many ODM located in China, only ODM 1 & ODM 2 could have shipped 32” & 42” LCD TVs, the ODM1 and ODM2 have capacity to produce 600000 quantity of each 32” and 42” LCD TV, the other can only produce 42” LCD TVs. The cost of shipment and production has been derived by taking weight of LCT TVs, per unit production cost and per metric ton shipment cost for each of the transportation modes. In addition to this, the carbon emission per unit has also been calculated in order to analyze carbon emission per LCD TV production by ODM (Allan Lyall, 2018).
It has been analyzed that the distance of LCD 42” ODM1 is 2508 km, LCD 42” ODM 4 is 2150 km and LCD 32” ODM 1 is 2508 km from the production place to the point of sales has significantly positive relationship to the cost of product, through the increased cost can be offset due to the distance through increasing the economies of scale or cost of production, that is, the company might gain benefit of economies of scale, thereby lowering the marginal production cost per product with the increase of total production volume (Jelinek, 2015)....................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
