7032MAA - Logistics and Supply Chain Economics - Coventry University

Learning outcome 1: Evaluate key cost structures, revenue generation and investment appraisal methods

Learning outcome 2: Critically appraise the key approaches to costing and pricing of logistics activities

Learning outcome 3: Apply appropriate techniques to judge financial performance of a logistics or supply chain business

Garment Flow Ltd - downstream fashion distributors

Requirements and Deliverables

Question 1. Critically assess how variance analysis could be used to manage the distribution operation. Justify a budgetary methodology which would be most appropriate for Garment Flow Ltd.

Question 2. The MD also requires you to evaluate an investment appraisal method that consider inflation and the cost of finance. Discuss how this method of investment appraisal could be used to secure an additional warehouse in Manchester assuming pallet storage can earn £10 per pallet per week in the local market.

Question 3. Using the costing data provided to calculate the price of transport to collect a full container of garments from the Port of Felixstowe back to Coventry, which is a journey of 157 miles, using the costs given for leasing an artic tractor unit and semi- trailer only. Ensure your price includes a mark-up of 30%. Criticise the methodology, key costing and pricing assumptions you have made in your calculations.

Question 4. Evaluate the different sources of finance available to Garment Flow Ltd. Judge which source of finance is most appropriate to purchase a reach stacker to lift containers from trailers to speed unloading.

Question 5. Justify how you can use the costing, pricing and investment concepts you have discussed so far, and any other appropriate accounting methods to judge the financial performance of Garment Flow Ltd.Please see the guidelines of preparing essay of Garment flow ltd.

Referencing - CU harvard

Word count : 2000

use diagrams flow charts etc

Attachment:- Logistics and Supply Chain Economics.rar