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Bloomex.ca Logistics Optimization Case Solution
| Solution Id | Length | Case Author | Case Publisher |
|---|---|---|---|
| 553 | 371 Words (1 Pages) | Samuel E Bodily, Anton Ovchinnikov | Darden School of Business : UV6304 |
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The optimal shipping plan would entail the transportation of 100 boxes from the Ontario growers to the Ontario (Toronto) shipment center. 624 boxes from the South American growers, 30 boxes from the Southeast Asian growers and 2 boxes from the Europe growers will then all be transported to the Transshipments center in Miami, Florida. And 426 boxes from the South American growers will be shipped to the transshipment center in Vancouver. This will ensure a supply inflow of 1182 boxes from the growers to the various transshipment centers in order to meet the weekly demands of the customers.
Following questions are answered in this case study solution:
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Develop an optimal Bloomex shipping plan for the proposed network (in boxes per week). Utilize the Miami transshipment facility and the Toronto and Vancouver facilities as transshipment centers, as needed.
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What is the total cost of the Bloomex shipping plan you suggest?
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What considerations other than cost should be factored into this proposed network restructuring decision?
Bloomex ca Logistics Optimization Case Analysis
2. What is the total cost of the Bloomex shipping plan you suggest?
The total cost of the shipping plan suggested is CAD 19224.5 while the existing cost is CAD 23095.5 which allows Bloomex to now save CAD 3871 in shipping costs combined with the supply and demand.
3. What considerations other than cost should be factored into this proposed network restructuring decision?
There are several other factors which should be considered apart from the cost of the network restructuring decision. Firstly other growers in the region from where the demand is generated should be contacted and brought on board. Also warehousing facilities, and the labor costs should be taken in to account as the variance in wages in different region can make the restructuring more non profitable rather than profitable.
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