Task Background

Up until now Company A has used the following logistical chain:

Factory in China -> Warehouse in China -> Consumer in the EU/US

To increase the speed at which the company can deliver its products to the consumer, it is
considering opening warehouses in the EU and US. The logistical chain would then look
like this:
Factory in China -> Warehouse in the EU/US -> Consumer in the EU/US

To decide whether Company A wants to take this step, their logistics department is looking
into the cost's side of the new logistical chain.

Your Task
You're tasked with determining the warehousing costs in the EU. Warehousing costs in the
US will be determined by a different team member.

Besides determining the costs, the logistics team will have to evaluate the qualitative
factors of each potential warehousing partner. But you don't need to be concerned about
that in this assignment.

You've received quotes from three potential warehousing partners in the EU.

The quotes include detailed breakdowns of their pricing. You want to determine the final
costs of each solution given Company A's sales projections for 2022.

Sales Projections For 2022

Company A currently sells three items: bras, comfortable footwear, and pants. Here are
the expected sales figures of Company A in 2022:
 Total sales: 1.3 million units
o 650k bras
o 520k comfortable footwear
o 130k pants
 Total sales volume per month is stable, except for October and November when it
increases by 50%.
 Geographical mix between different regions Jan-Sep, Dec:
o US: 40%
o Germany: 19%
o UK: 12%
o Netherlands: 10%
o France: 7%
o Canda: 5%
o Australia: 5%
o Other EU countries: 2%
 o
 Geographical mix between different regions Oct-Nov:
o US: 32%
o Germany: 25%
o UK: 12%
o Netherlands: 12.5%
o France: 8%
o Canda: 4%
o Australia: 4%
o Other EU countries: 2.5%
 Ratio between product categories is uniform throughout the year.

Product Parameters
All products are shipped to the warehouse in boxes. The number of items in each box and
box dimensions vary by product. Here are the specifics:

Box dimensions, cm Items per box

Product Weight per item, kg

Length Width Height

Bras 0.120 80 30 70 200

Comfortable footwear 0.510 120 50 30 20

Pants 0.610 120 50 30 30

An empty box weighs 0.100 kg.

Boxes are usually placed onto pallets. Pallet dimensions are 120 x 80 and up to 150 cm in
height.

Hint: it might be helpful to calculate how many boxes of each item can be placed onto a
pallet, as well as how many pallets will be shipped to the EU warehouse each month.

Other Notes
 Company A will not use any shipping options that price the service by man hour.
 You can assume that each item/pallet will be stored in the EU warehouse for a
month.
 No tracking will be used for Company A's shipments.
 You can assume that 3% of the items ordered will be returned. Company A offers
individual item returns (i.e., you don't have to return your entire order, just the
individual item you choose to return).
  CBM means cubic meters.
 As in real life, the quotes offered by the potential partners are in many different
formats with confusing and sometimes contrasting information. In case of
incomplete information, make a reasonable assumption. You can list the
assumptions made in a separate sheet of your spreadsheet. 

Deliverables
We're interested in the total cost of each potential warehousing solution for 2022.

Please send us a Google spreadsheet with your calculations. We should be able to see
how you arrived at the final number for each potential partner.