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Week 2 Assignment

Ashford University
Advanced Logistics
BUS 632

1. When comparing performance during the first five months of


2010 with performance in 2009, which warehouse shows the most
improvement?

This article will began by evaluating the performance of the warehouse


within the initial five months of the year 2010 against the performance in the
initial five months of 2009. It will consistently monitors the expenses of the
business intended for warehousing for the last 2 quarters of 2010.
I wanted to conclude the performance of the warehouses by assessing
the cost of the unit of product being transported. In making comparison in
the year 2009 and 2010, every warehouse has elevated the price per unit it
was transported excluding St. Louis. This will let us arrive to a conclusion
that St. Louis is having more cost even with lesser unit shipped.

Los
Atlanta

Angles

Portlan

St.

Louis

Boston

Chicago

Denver

Fargo

9.1195

9.0019

8.5572

9.0642

9.59583

8.9426

9.9665

69

83

14

86

59

51

38

9.9697

9.4312

9.2726

10.485

11.946

9.87717

9.2643

9.0694

65

28

57

52

07

48

71

$ per
unit
shipped
2009
$ per
unit
shipped
2010

Differen
ce 20092010

0.3116

9.2726

1.9283

2.8822

0.28133

-1

0.8970
-0.3217

67

The succeeding table will demonstrate the real five month expenses of each
warehouse during 2009 to 2010. Six out of eight of them have considerably
get more expenditure (red), however Los Angeles has lesser expenditure
compared to the expenditure of St. Louis. It indicates that St. Louis has vast
improvement compared to others.

Los
Atlant

Bosto

Chicag

Denv

Farg

Angele Portlan

St.

er

Louis

$
2,01 40,22
0 8
$
2,00 35,89
9 0

29,41

141,22

6
$

2
$

27,91

131,61

14,90 9,60
0

5
$

93,280 42,616
$

$ 8,88
8,600 3

109,69
0

$
19,191
$

36,021

23,232

118%

83%

108
112%
red

105%

107%

Increase in

173%

85%

cost
Decrease in cost but smaller
blue

than # 1
Best/greatest decrease in

black
costs
% evens out size differences of different
warehouses
Question 5. The year 2010 is nearly half over. J.Q. is told to
determine how much the firm is likely to spend for warehousing at
each of the eight warehouses for the last six months in 2010. Do his
work for him.

I am believe that the application of simple average forecasting strategy to


see the succeeding six months of warehouse expenses. The data provided
has no price costs for every month; however, there are cumulative values
during the five months of its operation. We can apply the average forecasting
strategy in which we can have the average value of price and apply this as
my forecasted digit on the next period. The table below will show the
forecasting of every warehouse, showing which warehouse are more likely to
have more spending compared to others.

Ware

Actual

Ave. per

Projected

house

costs five

mth.

for six

mths.

actual

mths.

costs
$
Atlanta
Boston
Chicago
Denver
Fargo

$ 40,228.00
8,045.60
$

48,273.60
$

5,883.20
$

35,299.20
$

28,244.40
$

169,466.40
$

2,980.00
$

17,880.00
$

1,921.00
$

11,526.00
$

18,656.00
$

111,936.00
$

8,523.20
$

51,139.20
$

3,838.20

23,029.20

$ 29,416.00
$141,222.00
$ 14,900.00
$

9,605.00

Los
$ 93,280.00
Angeles
Portlan
$ 42,616.00
d
St.
$ 19,191.00
Louis

As what has been demonstrated by this strategy, the forecasted value will
follow similar trend happened in the past. Also, this method showed that the
values for expected costs are approximately computed for every warehouse
of the company. Data from the last five months of 2010 until May 31 were
carefully chosen. The given data will then be divided by five in order to have
the average of each months costs. Using this method, the following results
were derived: Atlanta, $48273.60, Boston, $35299.20, Chicago, $169466.40,
Denver, $17880.00, Fargo, $11526.00, Los Angeles, $111936.00, Portland,
$51139.20, St. Louis, $23029.20.
The results showed that St. Louis considerably decreased compared
to Los Angeles. The rest of the involved warehouses have increased in terms

of expenses. This projection indicates that the trend will continue to pursue
for the next years to come.