Moonchem case study

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What is the annual cost of MoonChems strategy of sending full truckloads to each customer in the Peoria region to replenish consignment inventory? MoonChems customer profile appears in Table 1! Consider different delivery options and evaluate the cost of each. What delivery option do you recommend for MoonChem? MoonChem has the option of scheduling multiple deliveries on a single truck ith a base charge of -7 for the truck and - for each delivery the truck makes8 truck capacity remains at " ' pounds.

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Delivery Strategy at MoonChem |

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Discussion Questions

Consignment inventory is a supply chain management strategy. In this method, the retailer stores goods in his store without paying the supplier until the goods are purchased by an end customer. This concept has several advantages and disadvantages for both the supplier as well as the retailer.
We use cookies to give you the best experience possible. MoonChem is a manufacturer of specialty chemicals that decides to examine its delivery options to its customers. The necessary arose from concerns of inventory turnover being very low and discrepancies between 20 percent of its customers carrying consignment inventory, but over half of the inventory of MoonChem being in consignment with its customers.
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