7032MAA Assignment Help
Logistics Economics Assignment help
Correct Logistics Ltd, a UK based third party provider business, specialising in eFulfilment
for a number of online brands and businesses, and have hired you as UK Logistics
Manager based in their Coventry distribution centre. The business distributes to a network
of specialist shops hosted within the major retail and grocery chains throughout the UK.
The main purpose of your job is to profitably manage the UK distribution operation, which
consists of a distribution centre and warehouse based in Coventry, running a small fleet of
trucks of various configurations.
The Managing Director is considering expanding the distribution operation through growth
by expanding sales and the efficiency of the vehicle fleet. The accountant has given you
some vehicle costings data which is attached.
Requirements and Deliverables
1. The MD would like you to use existing academic literature to analyse the different
approach taken by management accounting compared with financial accounting.
12 marks (learning outcome 2)
2. Justify using variance analysis how various budgets could be used to control costs
and evaluate the performance of the distribution operation in Coventry.
15 marks (learning outcome 2)
3. As interest rates rise the MD requires you to evaluate and recommend an
investment appraisal tool that considers the time value of money which could be used to
justify an additional warehouse in Reading. 15 marks (learning outcome 2)
4. Using the costing data provided to calculate a single journey one-way price of
freight transport to collect a full trailer load from Purfleet docks to Coventry, which is a
journey of 144 miles, using the costs given for leasing an artic tractor unit, a semi-trailer
and employing a driver. Ensure your price includes a mark-up of 10%, states costing
assumptions and shows all calculations. 8 marks (learning outcome 3)
5. Distinguish the key difference between marginal, absorption and activity based
costing and use them to critique the assumptions, key costing, and pricing methodologies
you made to calculate the price of freight transport in the previous question.
20 marks (learning outcome 3)
6. Discriminate between the different sources of finance available to Correct Logistics
that could be used to purchase a conveyor sortation machine for the warehouse.
10 marks (learning outcome 5)
7. Create a summary for use by staff that demonstrates how they should use the
costing, pricing and investment concepts you have discussed so far to judge the financial
performance of Correct Logistics. 20 marks (learning outcome 5)
Your report for the Managing Director should be no more than 1,500 words, summarising
each deliverable. Your detailed answers to each question will be included on an
embedded maximum 5 minute MP3 recording within your report. Include a separate page
for a referenced bibliography to be submitted by Friday 7th April 2023.