7032MAA Evaluate key cost structure s, revenue generation and investment appraisal methods.

7032MAA Logistics and Supply Chain Economics Assignment - Coventry University, UK

Assessment Title - Garment Flow Ltd - Downstream Fashion Distributors

Learning outcomes -

1. Evaluate key cost structure s, revenue generation and investment appraisal methods.

2. Critically appraise the key approaches to costing and pricing of logistics activities.

3. Apply appropriate techniques to judge financial performance of a logistics or supply chain business.

Background - Garment Flow Ltd, a UK based garment distribution business, specialising in value adding services for retail importers, ma inly from China, have hired you as UK Logistics Manager based in their Coventry distribution centre. They consolidate and distribute all types of garment to a network of independent retailers and specialist brands throughout the UK.

The main purpose of your job is to profitably manage the UK distribution operation, which consists of a distribution cent re and warehouse based outside of Coventry with good access to the motorway system, operating a small fleet of vehicles of various configurations and financed using bought, rented and leased assets.

Business is growing and the Managing Director is considering expanding the distribution operation through the growth of the existing vehicle fleet. The accountant has compiled some vehicle costings data to assist you with answering the following questions posed by the Managing Director.