7032MAA Logistics & Supply Chain Economics 2021JanMay2102_7032maa assignment_Feb21.doc 1Wiggley Freight SPRLBackgroundWiggley Freight SPRL, a Belgium based logistics business, specialising in value addedlogistics services for bulky products such as mattresses, home insulation, foam andlightweight plastic materials is based in Zeebrugge, Belgium. They have hired you as a UKLogistics Manager to establish a new distribution operation depot … Continue reading “Logistics & Supply Chain Economics | My Assignment Tutor”
7032MAA Logistics & Supply Chain Economics 2021JanMay2102_7032maa assignment_Feb21.doc 1Wiggley Freight SPRLBackgroundWiggley Freight SPRL, a Belgium based logistics business, specialising in value addedlogistics services for bulky products such as mattresses, home insulation, foam andlightweight plastic materials is based in Zeebrugge, Belgium. They have hired you as a UKLogistics Manager to establish a new distribution operation depot in Coventry to serve amanufacturer of car seats based in Sutton Coldfield who are providing seating componentsto car manufacturers in Derby, Sunderland and Birmingham. Your role is to establish aviable distribution operation throughout the UK, including return loads. The main purposeof your job is to profitably establish the UK distribution operation, which initially consists ofa transport site and warehouse based outside of Coventry with good access to themotorway system, operating a fleet of five vehicles of various configurations and financedusing bought, rented and leased assets.Business is growing and the Belgium Managing Director is considering expanding thedistribution operation through the growth of the existing vehicle fleet. The accountant hascompiled some vehicle costings data to assist you with answering the following questionsposed by the Managing Director.Requirements and Deliverables1. Critically assess how variance analysis could be used to control the costs of thedistribution operation in Coventry and evaluate its performance.15 marks (learning outcome 2)2. The MD also requires you to evaluate an investment appraisal method thatconsiders the time value of money which could be used to secure an additionalwarehouse in Derby. 15 marks (learning outcome 2)3. Using the costing data provided to calculate the price of freight transport to collect afull trailer load of seats from Sutton Coldfield to Sunderland, which is a journey of203 miles, using the costs given for contract hiring an artic tractor unit and megasemi-trailer. Ensure your price includes a mark-up of 25%.25 marks (learning outcome 3)4. Critique the assumptions, key costing and pricing methodologies you made tocalculate the price of freight transport in the previous question.15 marks (learning outcome 3)5. Critically appraise the different sources of finance available that could be used topurchase a counterbalance fork-lift truck to quicken trailer unloading.15 marks (learning outcome 5)6. Justify how you can use the costing, pricing and investment concepts you havediscussed so far to judge the financial performance of Wiggley Freight in the UK.15 marks (learning outcome 5)7032MAA Logistics & Supply Chain Economics 2021JanMay2102_7032maa assignment_Feb21.doc 2Coursework GuidanceYou have decided the best way to tackle this project is by examining academic casestudies and market research companies that assess industry sectors such as the FreightTransport Association, Road Haulage Association, Keynotes, and Mintel would be helpfulin gaining an idea of the services offered by businesses involved in the transport andlogistics service market sector such as express pallet, courier and parcel services and theroad haulage industry as a whole.Your report for the Managing Director should be no more than 3,000 words in length andincluding a referenced bibliography to be on his desk by Tuesday 20th April 2021.Word Count to be shown and complied with and should not include bibliography.This assignment will account for 67% or 10 credits of the coursework assessmentfor this moduleFile name format: Familyname-Firstname-7032maaApr21.docIn MS Word document format ONLY.Module Learning Outcomes assessed in this assignment:Learning outcome 2: Evaluate key cost structures, revenue generation and investmentappraisal methodsLearning outcome 3: Critically appraise the key approaches to costing and pricing oflogistics activitiesLearning outcome 5: Apply appropriate techniques to judge financial performance of alogistics or supply chain businessThe overall grade will be influenced by the application of the scenario as well as the clarityand justification of ideas presented in the report.A basic report which meets the learning outcomes with basic referencing and obviousjustifications will earn a pass grade of 40/100 (40%) or above.A grade of 50/100 (50%) will contain an adequate level of application and understanding oflogistics costings and pricing concepts with adequate justifications.A grade of 60/100 (60%) and above will contain a good level of application andappreciation of logistics costings and pricing concepts and be well applied with goodjustifications.A grade of 70/100 (70%) and above will demonstrate a level of excellence of applicationand appreciation of logistics costings and pricing concepts and be well applied withexcellent justifications.Report FormatThe written report should have a clear structure, which is evident through the use of anumbering system and/or styles of headings. These indicate a hierarchy of different levelsof importance or significance. It will be necessary to organise ideas and plan this structurein advance of writing the detailed content. This approach is different to an ‘essay’ style,which relies on the use of paragraphs and link sentences to indicate changes of topic.7032MAA Logistics & Supply Chain Economics 2021JanMay2102_7032maa assignment_Feb21.doc 3Costing data for Wiggley Freight’s vehicle fleet & staffRental Price per Artic per 5 day weekPrice per Mega Trailer per 5 day weekContract HirePrice per Artic per 5 day week for 1 year contractPrice per Mega Trailer per 5 day week for 1 year contractDriver Agency costsOne driver per 8 hour day (over time after 40 hours at time and a half)LeasingPrice per Artic per 5 day week for 6 year operating leasePrice per Mega Trailer per 5 day week for 6 year operating leasePurchaseDepreciated to zero over 6 yearsNew Volvo FH16 425 bhp 6×2 Artic tractor unitNew Van Hool mega tilt trailer£426£144£390£95£90£295£70£95,000£45,000 You pay your drivers £20,000 per year fixed salary for an eight hour minimum day.Fuel currently costs £5.20 a gallon (£1.14 per litre) and the new Volvo FH16 425 bhp 6×2Tractor unit has an average fuel economy of 8 miles per gallon.Other annual costs in the transport office include: Management costs:Overhead costs:£33,500 p/yr for a Supervisor£425 p/yr telephones & telematic technologies Assume there are 250 working days a year7032MAA Supply Chain & Logistics Economics2102_7032maa assignment_Feb21.doc 4Assignment Brief 2020/21Module Title SC & Logistics EconomicsJan 217032maaCoursework TitleWiggley Freight SPRLHand out date:21 January 2021LecturerNick WrightDue date:20 April 2021Estimated Time (hrs): 50Word Limit*: 3,000Coursework type:Assignment% of Module Mark67% or 10 creditsSubmission arrangement online via Aula:File types and method of recording: doc onlyMark and Feedback date: 15 May 2021Mark and Feedback method: Moodle marking scheme Individual CohortModule Code Module Learning Outcomes Assessed:2 Evaluate key cost structures, revenue generation and investment appraisal methods3 Critically appraise the key approaches to costing and pricing5 Apply appropriate techniques to judge financial performance of a logistics or supply chain businessTask and Mark distribution:1. Critically assess how variance analysis could be used to control the costs of the distributionoperation in Coventry and evaluate its performance. 15 marks (learning outcome 2)2. The MD also requires you to evaluate an investment appraisal method that considers the timevalue of money which could be used to secure an additional warehouse in Derby.15 marks (learning outcome 2)3. Using the costing data provided to calculate the price of freight transport to collect a full trailerload of seats from Sutton Coldfield to Sunderland, which is a journey of 203 miles, using thecosts given for contract hiring an artic tractor unit and mega semi-trailer. Ensure your priceincludes a mark-up of 25%. 25 marks (learning outcome 3)4. Critique the assumptions, key costing and pricing methodologies you made to calculate theprice of freight transport in the previous question. 15 marks (learning outcome 3)5. Critically appraise the different sources of finance available that could be used to purchase acounterbalance fork-lift truck to quicken trailer unloading.15 marks (learning outcome 5)6. Justify how you can use the costing, pricing and investment concepts you have discussed sofar to judge the financial performance of Wiggley Freight in the UK.15 marks (learning outcome 5) Notes:1. You are expected to use the Coventry University APA style for referencing. For support andadvice on this students can contact Academic Liaison Librarian or Centre for AcademicWriting (CAW).2. Please notify your registry course support team and module leader for disability support.3. Any student requiring an extension or deferral should follow the university process as outlinedThis document is for Coventry University students for their own use in completing theirassessed work for this module and should not be passed to third parties or posted on anywebsite. Any infringements of this rule should be reported tofacultyregistry.eec@coventry.ac.uk.2102_7032maa assignment_Feb21.doc 5here.4. The University cannot take responsibility for any coursework lost or corrupted on disks,laptops or personal computer. Students should therefore regularly back-up any work and areadvised to save it on the University system.5. If there are technical or performance issues that prevent students submitting courseworkthrough the online coursework submission system on the day of a coursework deadline, anappropriate extension to the coursework submission deadline will be agreed. This extensionwill normally be 24 hours or the next working day if the deadline falls on a Friday or over theweekend period. This will be communicated via your Module Leader.6. Assignments that are more than 10% over the word limit will result in a deduction of 10% ofthe mark i.e. a mark of 60% will lead to a reduction of 6% to 54%. The word limit includesquotations, but excludes the bibliography, reference list and tables.7. You are encouraged to check the originality of your work by using the draft Turnitin links onAula.Mark allocation guidelines to students 0-3940-4950-5960-6970+Work mainlyincomplete and/or weaknessesin most areasMost elementscompleted;weaknessesoutweighstrengthsMost elementsare strong, minorweaknessesStrengths in allelementsMost workexceeds thestandardexpected
