Managerial Report
Table of Contents
Executive Summary2
Background3
Objective3
Results Obtained4
Recommendation4
Rationale5
Managerial Report6
Appendix11
Executive Summary background Darby Company manufactures and distributes meters used to measure electric power consumption. The company has production plants in El Paso, Texas and San Bernardino, California. The company also has three distribution centers in Fort Worth, Texas; Santa Fe, New Mexico; and Las Vegas, Nevada. The company has nine customer zones that its product is shipped to from the three distribution centers and they are; Dallas, San Antonio, Wichita, Kansas City, Denver, Salt Lake City, Phoenix, Los Angeles, and San Diego. objective Due to the rapid growth that Darby Company has experienced, the overall efficiency of our distribution system is being assessed to verify that Darby Company is maximizing its distribution resources.
492823522796500Results obtained
Table 1
Master Summary Table Unit Cost # Units Version 1 Version 2 Version 3
TOTAL COST $ 620,770 $ 600,942 $ 553,534 Manufacturing Cost * Units ( El Paso) $10.50 28,220 21,260 21,260 * Units ( San Bernardino) $10.00 13,040 20,000 20,000
Total Units 41,260 41,260 41,260
TOTAL MANUFACTURING $426,710 $423,230 $423,230
TOTAL TRANSPORTATION $194,060 $177,712 $130,304
$/Units $15 $15 $13
3314700220980Version 3 costs $2 less per meter to ship than Version 1 or Version 2
00Version 3 costs $2 less per meter to ship than Version 1 or Version 2
480060010668000
Recommendation
After a thorough analysis of the Darby Company distribution system, Version 3 of the distribution methods analyzed is the distribution network that Darby Company should pursue to maximize its resources and minimize costs. We further recommend Darby not expand manufacturing operations until its demand has grown to meet and exceed its supply capabilities.
Rationale
Should Darby choose to include some
Executive Summary2
Background3
Objective3
Results Obtained4
Recommendation4
Rationale5
Managerial Report6
Appendix11
Executive Summary background Darby Company manufactures and distributes meters used to measure electric power consumption. The company has production plants in El Paso, Texas and San Bernardino, California. The company also has three distribution centers in Fort Worth, Texas; Santa Fe, New Mexico; and Las Vegas, Nevada. The company has nine customer zones that its product is shipped to from the three distribution centers and they are; Dallas, San Antonio, Wichita, Kansas City, Denver, Salt Lake City, Phoenix, Los Angeles, and San Diego. objective Due to the rapid growth that Darby Company has experienced, the overall efficiency of our distribution system is being assessed to verify that Darby Company is maximizing its distribution resources.
492823522796500Results obtained
Table 1
Master Summary Table Unit Cost # Units Version 1 Version 2 Version 3
TOTAL COST $ 620,770 $ 600,942 $ 553,534 Manufacturing Cost * Units ( El Paso) $10.50 28,220 21,260 21,260 * Units ( San Bernardino) $10.00 13,040 20,000 20,000
Total Units 41,260 41,260 41,260
TOTAL MANUFACTURING $426,710 $423,230 $423,230
TOTAL TRANSPORTATION $194,060 $177,712 $130,304
$/Units $15 $15 $13
3314700220980Version 3 costs $2 less per meter to ship than Version 1 or Version 2
00Version 3 costs $2 less per meter to ship than Version 1 or Version 2
480060010668000
Recommendation
After a thorough analysis of the Darby Company distribution system, Version 3 of the distribution methods analyzed is the distribution network that Darby Company should pursue to maximize its resources and minimize costs. We further recommend Darby not expand manufacturing operations until its demand has grown to meet and exceed its supply capabilities.
Rationale
Should Darby choose to include some