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DHL Supply Chain Case Solution & Answer

DHL Supply Chain Case Solution

Sensitivity analyses: repeat question 2 for other possible percentage increases in the budget.

The two analyses were done in which the first reflects the 15% increase in the Budget of CNY 3 billion that totals a budget of CNY 3.45 billion. On the other hand, the second was done with an increase of 20% in the total budget that will be CNY 3.6 billion.

The budget CNY 3.45 billion delivers a total reduction of 54.58% in the Carbon Dioxide Emissions as compare to a budget of CNY 3 billion. The other budget of CNY 3.6 billion revealed a reduction of 54.76% in carbon dioxide emissions. The two budgets are stated below.

Budget 3450000000
Surplus or deficit ¥501
Total Units Transported to DC by each Mode from different ODMs
Air Road Rail Water
LCD 32 ODM1 0
ODM2 53000 79500 79500 318000 530000
LCD 42 ODM1 0
ODM2 0
ODM3 0
ODM4 200000 200000
ODM5 233958 233958
ODM6 0
ODM7 46000 138000 302042 486042
Total cost
LCD 32 ODM1 ¥0 ¥0 ¥0 ¥0
ODM2 ¥207,181,240 ¥166,147,750 ¥166,316,703 ¥649,047,286 ¥1,188,692,978
LCD 42 ODM1 ¥0 ¥0 ¥0 ¥0
ODM2 ¥0 ¥0 ¥0 ¥0
ODM3 ¥0 ¥0 ¥0 ¥0
ODM4 ¥0 ¥0 ¥0 ¥408,821,280
ODM5 ¥0 ¥679,079,004 ¥0 ¥0
ODM6 ¥0 ¥0 ¥0 ¥0
ODM7 ¥202,035,680 ¥0 ¥311,069,774 ¥660,300,782
¥409,216,920 ¥845,226,754 ¥477,386,477 ¥1,718,169,348 ¥3,449,999,499
Total CO2 emission
LCD 32 ODM1 0 0 0 0
ODM2 1955662 124877 58059 57040
LCD 42 ODM1 0 0 0 0
ODM2 0 0 0 0
ODM3 0 0 0 0
ODM4 0 0 0 66220
ODM5 0 9465 0 0
ODM6 0 0 0 0
ODM7 999694 0 59357 31909
2955356 134343 117416 155169 3362283
-54.58%

Budget 3600000000
Surplus or deficit ¥435
Total Units Transported to DC by each Mode from different ODMs
Air Road Rail Water
LCD 32 ODM1 0
ODM2 53000 79500 79500 318000 530000
LCD 42 ODM1 0
ODM2 0
ODM3 0
ODM4 200000 200000
ODM5 443325 443325
ODM6 0
ODM7 46000 138000 92675 276675
Total cost
LCD 32 ODM1 ¥0 ¥0 ¥0 ¥0
ODM2 ¥207,181,240 ¥166,147,750 ¥166,316,703 ¥649,047,286 ¥1,188,692,978
LCD 42 ODM1 ¥0 ¥0 ¥0 ¥0
ODM2 ¥0 ¥0 ¥0 ¥0
ODM3 ¥0 ¥0 ¥0 ¥0
ODM4 ¥0 ¥0 ¥0 ¥408,821,280
ODM5 ¥0 ¥1,286,780,959 ¥0 ¥0
ODM6 ¥0 ¥0 ¥0 ¥0
ODM7 ¥202,035,680 ¥0 ¥311,069,774 ¥202,598,893
¥409,216,920 ¥1,452,928,708 ¥477,386,477 ¥1,260,467,459 ¥3,599,999,565
Total CO2 emission
LCD 32 ODM1 0 0 0 0
ODM2 1955662 124877 58059 57040
LCD 42 ODM1 0 0 0 0
ODM2 0 0 0 0
ODM3 0 0 0 0
ODM4 0 0 0 66220
ODM5 0 17936 0 0
ODM6 0 0 0 0
ODM7 999694 0 59357 9791
2955356 142813 117416 133051 3348635
-54.76%

  1. What would you recommend Yee to do?

Yee should firstly approach the management of Consumer Electronics Company to increase their budget for the Production and Shipment.Moreover, Yee should make a particular level needed in the inventory that will be fulfilled by the ODM five as it is nearest to distribution center.

The minimum requirement schedule will reduce the extra costs that company would pay in Regular Air and Air express Transport modes. These two modes also have the maximum Carbon Dioxide Emissions. The ODM5 has the lowest carbon Footprints as its distance is 30 KMs from the Distribution center.

The forecasts estimate that the ODM 3 and 6 are having the high cost of Production plus the shipment per unit. The ODM6 has greater distance of 690 KM to distribution center as compared to 686 KM distance of ODM7 to Distribution Center. The Production and Shipment cost of each mode of ODM6 is relatively higher than the ODM7.

Apart from that, ODM3 also has the higher Production and Shipment Cost as compared to the ODM7. ODM1has relatively lower costs of Production and shipment than ODM2 however, the carbon footprints for the ODM1 are considerably doubles the carbon footprints of ODM2. The company should lower the Production and Shipment costs at ODM2 to achieve synergy in cost reduction and carbon dioxide reduction…………………

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