Bloomex.Ca Logistics Optimization Case Study Analysis
Gains from Additional Supply
If, the company considersacquiring more additional shipping units from each growers, the demand by the production facility should be increased, because the increased units would be shipped in the production facility plant, ultimately. On special occasions, the need for flowers would increase. Thus, it would prove to be an efficient step to purchase more units during these occasions. In order to find the best location, from where the company should purchase, we should look in the appendix 1 to identify the resulting lower shipping cost from the respective grower. It can be seen that the best locationsinclude: Toronto to Montreal, Vancouver to Calgary, Toronto to Halifax and Toronto to Calgary, because all these grower’s flowers transportation costsare relatively lower as compared to others. Thus, it is highly recommended that those areas should be chosen, which would yield low transportation cost along with nearest production facilityto thetransportation centers. The purchase orders would depend on the needed demand, occasion wise and its respective transportation cost.(Hemminki, 2019).
Recommendations
After evaluating the entire case with the help of available facts and figures, it is recommended that Dimitri should open a new transportation center in Miami. By assuming the cost of CAD 23, 095 in order to make comparison with respect to the previous total shipping cost, the total cost saving would be CAD17,037. Thus, the company is highly recommended with the new transportation facility, which would allow the company to have a significant reduction in its cost incurrence. The shipment plan provides an optimal solution and cost saving.(Anton Ovchinnikov and Samuel E. Bodily, 2011). Thus, the three transportation facilities are sufficient, which would help in reducingthe per box cost. In addition to this, the additional demand is highly dependent upon the seasonal and traditional events, when the demand increases. Thus, more units should be purchased from the nearest growers, at lower prices.
Conclusion
To conclude:Bloomexis offering various arrangements for gifts and florals, in Canada. Dimitri- the owner, is considering the best optimal shipping plan, along with examining the savings and cost generated by the establishment of a new transportation center. In addition to this, he is also trying to find out looking that what would be the best location and what gain will be achieved by finding an additional supply sources. Thus, the objective is to minimize the cost, along with finding out an optimal shipping plan. It is recommended that that Dimitri should open a new transportation center in Miami. The analysis represents a total cost saving of CAD17,037. Thus, it is highly recommended that the company should opt for a new transportation facility, which would reduce the total cost,with yielding an optimal shipping plan. The previous cost of the shipping plan was CAD23, 095, while, the new shipping plan yieldsa total of CAD6,022.50. The amount that is saved by the new shipping plan is CAD17,037................................
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