Scribd Logo
Upload

Welcome to Scribd!

  • B-KAY Tech Case

    Uploaded by

    ammi890
    71 views2 pages
    This document compares four scenarios for collaboration between companies B-Kay and Ware-Touch on transportation and inventory costs. Scenario 1 involves each company paying 50% of the other's transportation costs, reducing costs for both but providing only modest savings. Scenario 2 calculates costs based on the percentage of joint versus separate transports, showing greater savings for Ware-Touch than B-Kay. Scenario 3 apportions costs based on shipment volumes on joint transports, significantly reducing costs for Ware-Touch but increasing costs for B-Kay. The final scenario involves sharing total transportation costs, providing modest savings for both companies over going it alone.

    Original Description:

    selected topics

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document compares four scenarios for collaboration between companies B-Kay and Ware-Touch on transportation and inventory costs. Scenario 1 involves each company paying 50% of the other's transportation costs, reducing costs for both but providing only modest savings. Scenario 2 calculates costs based on the percentage of joint versus separate transports, showing greater savings for Ware-Touch than B-Kay. Scenario 3 apportions costs based on shipment volumes on joint transports, significantly reducing costs for Ware-Touch but increasing costs for B-Kay. The final scenario involves sharing total transportation costs, providing modest savings for both companies over going it alone.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    71 views2 pages

    B-KAY Tech Case

    Uploaded by

    ammi890
    This document compares four scenarios for collaboration between companies B-Kay and Ware-Touch on transportation and inventory costs. Scenario 1 involves each company paying 50% of the other's transportation costs, reducing costs for both but providing only modest savings. Scenario 2 calculates costs based on the percentage of joint versus separate transports, showing greater savings for Ware-Touch than B-Kay. Scenario 3 apportions costs based on shipment volumes on joint transports, significantly reducing costs for Ware-Touch but increasing costs for B-Kay. The final scenario involves sharing total transportation costs, providing modest savings for both companies over going it alone.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Scenario 1 under 50% of total transport Cost B-Kay Ware-Touch

    Transportation costs € 4,750.00 € 4,050.00


    Costs after sharing 50% of transport costs € 4,400.00 € 4,400.00
    Inventory Holding costs € 437.50 € 412.50
    Total logistics costs (TC after 50% + HC) € 4,837.50 € 4,812.50
    No Collaboration € 5,500.00 € 4,875.00
    Cost Advantage 12.05% 1.28%

    Senario 2 (50% total Joint Transport cost) B-Kay Ware-Touch


    Transportation costs € 4,750.00 € 4,050.00
    Total self-initiated transports 90 50
    Total joined transports 25 35
    Annual Inventory Holding costs € 437.50 € 412.50
    Self-initiated transport as % 78.26% 58.82%
    Joined transport as % 21.74% 41.18%
    Cost of self-initiated transport (SIT%*TRC) € 3,717.40 € 2,382.40
    Cost of joined transport € 1,032.60 € 1,667.60
    Sharing 50% of joined transport cost (JT/2) € 1,350.10 € 1,350.10
    Total logistics cost (HC+SCT+50% JT) € 5,505.00 € 4,145.00
    No Collaboration cost € 5,500.00 € 4,875.00
    Cost Advantage -0.09% 14.97%

    Scenario 3 (on the proportion of the annual total volume shipped) B-Kay Ware-Touch
    Transportation costs € 4,750.00 € 4,050.00
    No. of self-initiated transports 90 50
    No. of joined transports 25 35
    Inventory Holding costs € 437.50 € 412.50
    Volume shipped in self-initiated 2,700 4,000
    Volume shipped in joined 500 2,450
    Total volume shipped 3,200 6,450
    % of share in joined transport 33.16% 66.84%
    Sharing cost of transport based on volume shipped € 2,918.10 € 5,881.90
    Total logistics cost (Shared Cost + HC) € 3,355.60 € 6,294.40
    No Collaboration € 5,500.00 € 4,875.00
    Cost Advantage 38.99% -29.12%

    Scenario 4 ( Sharing total transport cost) (Standalone) B-Kay Ware-Touch


    Transportation costs € 4,750.00 € 4,050.00
    Inventory Holding costs € 437.50 € 412.50
    Total Cost standalone € 5,187.50 € 4,462.50
    No Collaboration € 5,500.00 € 4,875.00
    Cost advantage 5.68% 8.46%

    You might also like