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Warehouse and Distribution

The document compares the internal costs of making a product versus buying it from a supplier for different demand levels. It finds that for demands of 10,000, 6,000 and 100,000 units, making the product internally is cheaper than buying from the supplier. However, for a demand of 1,000,000 units, buying from the supplier at $5 per unit is cheaper than the internal cost of $0.517 per unit.

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Asmita Kandari
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28 views9 pages

Warehouse and Distribution

The document compares the internal costs of making a product versus buying it from a supplier for different demand levels. It finds that for demands of 10,000, 6,000 and 100,000 units, making the product internally is cheaper than buying from the supplier. However, for a demand of 1,000,000 units, buying from the supplier at $5 per unit is cheaper than the internal cost of $0.517 per unit.

Uploaded by

Asmita Kandari
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
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Place Population Normalise Estimate Demand Normalise Per Person Demand

Dubai Creek 1000 8.33333E-05 10000 0.000550581177 10.00


Bur Dubai 10357159 0.86309658 16584891 0.9131328806749 1.60
Business Bay 151869 0.01265575 1581693 0.087085039355 10.41
Palm Jumeirah Island 400000 0.03333333 416347 0.0229232821289 1.04
Al Fahidi 5000000 0.41666667 8141361 0.4482480121542 1.63
Ras Al-Khaimah 750000 0.0625 51648 0.0028436416628 0.07
Al Jurf 12000000 1 18162626 1 1.51

Max 12000000 1 18162626 10.41


Normalise City Happiness (/10) Normalise City Pollution (/100) Normalise
0.96 10 1 1 0.01
0.15 8 0.8 70 0.7
1.00 7 0.7 20 0.2
0.10 5 0.5 60 0.6
0.16 6 0.6 70 0.7
0.01 5 0.5 75 0.75
0.15 5 0.5 80 0.8

10 100
Pollution Normalise Scaled Latitude Longitude
99 1 0 0.97 23.9 63.7
30 0.303030303030303 3.13 46.3 25.5
80 0.808080808080808 1.19 29.7 14.7
40 0.404040404040404 0.85 89.7 26.4
30 0.303030303030303 2.02 12.9 78.5
25 0.252525252525253 1.07 52.6 48.3
20 0.202020202020202 3.24 53.6 57.9

99
weighted latitude weighted longitude
0.01 0.04
42.28 23.28
2.59 1.28
2.06 0.61
5.78 35.19
0.15 0.14
53.60 57.90

15.21 16.92
Task Time Workers Time to Completion Process time Bottleneck
Process 1 41 15.17 7
Task 1 15 3 5.00
Task 2 1 1 1.00
Task 3 20 3 6.67
Task 4 5 2 2.50
Allocated workers 9
total workers 9

Task Time Workers Time to Completion Process time Bottleneck


Process 2 28 12.00 3
Task 1 1 1 1
Task 2 10 3 3.33333333333333
Task 3 8 3 2.66666666666667
Task 4 9 3 3
Task 5 2 1 2
Allocated workers 11
total workers 11

Process 3 15 7.50 3
Task 1 4 2 2
Task 2 6 2 3
Task 3 5 2 2.5
Allocated workers 6
total workers 6

Process 4 441 9.78 7


Task 1 8 10 0.8
Task 2 419 62 6.75806451612903
Task 3 1 2 0.5
Task 4 8 9 0.888888888888889
Task 5 5 6 0.833333333333333
Allocated workers 89
total workers 89

Process 5 81 9.55 2
Task 1 7 8 0.875
Task 2 3 4 0.75
Task 3 7 9 0.777777777777778
Task 4 24 15 1.6
Task 5 8 9 0.888888888888889
Task 6 6 8 0.75
Task 7 1 3 0.333333333333333
Task 8 8 9 0.888888888888889
Task 9 2 4 0.5
Task 10 3 5 0.6
Task 11 5 7 0.714285714285714
Task 12 7 8 0.875
Allocated workers 89
total workers 89
Capacity Recommendation
3.96

Capacity Recommendation
5.00

8.00

6.13

6.28 6
Demand: 10,000 units

Supplier Cost Internal Costs


$5.00 per unit Direct Materials 10,000
Direct Labor 5,000
Variable Overhead 7,000
Depreciation of Equipment 3,000
Allocation of General Overhead 10,000
Cost per unit $3.5
Make or Buy Make

Demand: 6,000 units

Supplier Cost Internal Costs


$5.00 per unit Direct Materials 7,000
Direct Labor 4,000
Variable Overhead 5,000
Depreciation of Equipment 2,000
Allocation of General Overhead 8,000
Cost per unit $4.33
Make or Buy Make

Demand: 100,000 units

Supplier Cost Internal Costs


$5.00 per unit Direct Materials 50,000
Direct Labor 30,000
Variable Overhead 35,000
Depreciation of Equipment 11,000
Allocation of General Overhead 10,000
Cost per unit $1.36
Make or Buy Make

Demand: 1,000,000 units

Supplier Cost Internal Costs


$5.00 per unit Direct Materials 200,000
Direct Labor 110,000
Variable Overhead 97,000
Depreciation of Equipment 40,000
Allocation of General Overhead 70,000
Cost per unit $0.517
Make or Buy Make

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