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Ashford University
Advanced Logistics
BUS 632
Los
Atlanta
Angles
Portlan
St.
Louis
Boston
Chicago
Denver
Fargo
9.1195
9.0019
8.5572
9.0642
9.59583
8.9426
9.9665
69
83
14
86
59
51
38
9.9697
9.4312
9.2726
10.485
11.946
9.87717
9.2643
9.0694
65
28
57
52
07
48
71
$ per
unit
shipped
2009
$ per
unit
shipped
2010
Differen
ce 20092010
0.3116
9.2726
1.9283
2.8822
0.28133
-1
0.8970
-0.3217
67
The succeeding table will demonstrate the real five month expenses of each
warehouse during 2009 to 2010. Six out of eight of them have considerably
get more expenditure (red), however Los Angeles has lesser expenditure
compared to the expenditure of St. Louis. It indicates that St. Louis has vast
improvement compared to others.
Los
Atlant
Bosto
Chicag
Denv
Farg
Angele Portlan
St.
er
Louis
$
2,01 40,22
0 8
$
2,00 35,89
9 0
29,41
141,22
6
$
2
$
27,91
131,61
14,90 9,60
0
5
$
93,280 42,616
$
$ 8,88
8,600 3
109,69
0
$
19,191
$
36,021
23,232
118%
83%
108
112%
red
105%
107%
Increase in
173%
85%
cost
Decrease in cost but smaller
blue
than # 1
Best/greatest decrease in
black
costs
% evens out size differences of different
warehouses
Question 5. The year 2010 is nearly half over. J.Q. is told to
determine how much the firm is likely to spend for warehousing at
each of the eight warehouses for the last six months in 2010. Do his
work for him.
Ware
Actual
Ave. per
Projected
house
costs five
mth.
for six
mths.
actual
mths.
costs
$
Atlanta
Boston
Chicago
Denver
Fargo
$ 40,228.00
8,045.60
$
48,273.60
$
5,883.20
$
35,299.20
$
28,244.40
$
169,466.40
$
2,980.00
$
17,880.00
$
1,921.00
$
11,526.00
$
18,656.00
$
111,936.00
$
8,523.20
$
51,139.20
$
3,838.20
23,029.20
$ 29,416.00
$141,222.00
$ 14,900.00
$
9,605.00
Los
$ 93,280.00
Angeles
Portlan
$ 42,616.00
d
St.
$ 19,191.00
Louis
As what has been demonstrated by this strategy, the forecasted value will
follow similar trend happened in the past. Also, this method showed that the
values for expected costs are approximately computed for every warehouse
of the company. Data from the last five months of 2010 until May 31 were
carefully chosen. The given data will then be divided by five in order to have
the average of each months costs. Using this method, the following results
were derived: Atlanta, $48273.60, Boston, $35299.20, Chicago, $169466.40,
Denver, $17880.00, Fargo, $11526.00, Los Angeles, $111936.00, Portland,
$51139.20, St. Louis, $23029.20.
The results showed that St. Louis considerably decreased compared
to Los Angeles. The rest of the involved warehouses have increased in terms
of expenses. This projection indicates that the trend will continue to pursue
for the next years to come.