doctor of meds
Week 2 Lab
|Step 1: First Year Costs | |
Question 1: What would the first-year costs be to AML if it purchased the 10 used 20-foot containers? How long would it take to recoup the investment, assuming that the mushroom traffic continued?
Based on 120 container shipments per year with 10% loads return or 12 containers, this would generate revenues equal to the associated cost.
Looking at the charts below the proposed service would actually lose money as the investment of $255.350 can’t be gained back. Investment cost would be 10 containers X 7 which equals 70. Re-equipping of 5 flatcars X 9 would equal 45. For a total investment of 115. 115 X 2,222 = $255,530.
|Cost Category |Monthly Cost |Annual Cost |
|Inbound transportation |20,000 |240,000 |
|Outbound transportation |10,000 |120,000 |
|Maintenance | |22,220 |
|Energy | |33,330 |
|Total | |415,550 |
Questions
1. What would the first-year costs be to AML if it purchased the 10 used 20-foot containers? How long would it take to recoup the investment, assuming that the mushroom traffic continued?
2. What would the first-year costs be to AML if it purchased five new 40-foot containers? How long would it take to recoup the investment, assuming that the mushroom traffic continued?
3. Is one of the alternatives in Questions 1 and 2 riskier? Why?
4. Mr. Singh has read about the supply-chain concept that attempts to identify and link all the participants from suppliers’ suppliers to customers’ customers. Who are all
an online presence whereby clients can place orders online and check the status of their cargo. So far the increase in sales from the online presence has not been much. Most of AML’s clients are spread out in rural areas, and except for customers in Delhi, most do not have access to the Internet.
Today AML is handling an average of 200-plus
TEUs (20-foot container equivalents) of imports and exports every month between Delhi and Mumbai
(Bombay), which is the nearest
|Step 1: First Year Costs | |
Question 1: What would the first-year costs be to AML if it purchased the 10 used 20-foot containers? How long would it take to recoup the investment, assuming that the mushroom traffic continued?
Based on 120 container shipments per year with 10% loads return or 12 containers, this would generate revenues equal to the associated cost.
Looking at the charts below the proposed service would actually lose money as the investment of $255.350 can’t be gained back. Investment cost would be 10 containers X 7 which equals 70. Re-equipping of 5 flatcars X 9 would equal 45. For a total investment of 115. 115 X 2,222 = $255,530.
|Cost Category |Monthly Cost |Annual Cost |
|Inbound transportation |20,000 |240,000 |
|Outbound transportation |10,000 |120,000 |
|Maintenance | |22,220 |
|Energy | |33,330 |
|Total | |415,550 |
Questions
1. What would the first-year costs be to AML if it purchased the 10 used 20-foot containers? How long would it take to recoup the investment, assuming that the mushroom traffic continued?
2. What would the first-year costs be to AML if it purchased five new 40-foot containers? How long would it take to recoup the investment, assuming that the mushroom traffic continued?
3. Is one of the alternatives in Questions 1 and 2 riskier? Why?
4. Mr. Singh has read about the supply-chain concept that attempts to identify and link all the participants from suppliers’ suppliers to customers’ customers. Who are all
an online presence whereby clients can place orders online and check the status of their cargo. So far the increase in sales from the online presence has not been much. Most of AML’s clients are spread out in rural areas, and except for customers in Delhi, most do not have access to the Internet.
Today AML is handling an average of 200-plus
TEUs (20-foot container equivalents) of imports and exports every month between Delhi and Mumbai
(Bombay), which is the nearest