Professional Documents
Culture Documents
should be KY
study thoroughly
Arunachalam Narayanan
Product development
Technology
Marketing
Manufacturing, and
Supply chains.
Key characteristics:
Some initiatives
Sea Ports
COUNTRY
Canada
China
Mexico
Japan
Germany
United Kingdom
South Korea
France
Taiwan
Brazil
Total
2008
601
408
367
204
152
112
83
73
61
63
$2,124
2009
431
366
306
147
115
93
68
61
47
46
$1,679
2010
525
457
393
181
131
98
88
66
62
59
$2,059
LA/Long Beach
New York/ New Jersey
Houston
Port of South Louisiana, LA
Port statistics
Rankings vary by tonnage, number of containers,
value of imports/exports
Chinese ports dominates international rankings
By tonnage:
In US , No. 1 is Port of South Louisiana, No 2 is Houston
and No.3 is LA/Long Beach
By no. of containers
Ports
Land Ports are also POE
Examples
Along US-Mexico
Laredo
El Paso
Otay Messa
Along US-Canada
Detroit (MI)
Buffalo (NY)
Ports
Air expensive
Only advantage is speed
Motor
Adjacent countries, e.g. Between US-Mexico, US-Canada or in between European
countries
Rail
International rail traffic is limited because border crossing points are scarce.
But Intermodal movements are increasing. An example (from text)
Japan to Europe by Sea alone is 28-31 days
Another intermodal route:
Japan to Seattle (by sea) : 10 days
Seattle to NY (by rail) : 5 days
NY to Europe (by sea) : 7 days
Total : 22 days
Challenges is several countries and carriers are involved, therefore cost will tend to
increase
Global Intermediaries
Freight forwarders
Foreign freight forwarders
Typical surface/ocean freight forwarders
Global Intermediaries
know this one
Airfreight forwarders
Global Intermediaries
Customs House Brokers
Typically seen in US-Mexico border transactions
CHBs are licensed by Dept. of Treasury
Public warehouses
Available for extended storage periods. Services and fee charges are
similar to domestic shipments
Bonded warehouses
operate under customs agencys supervision and are used to store,
repack, sort, or clean imported merchandise entered for warehousing
without paying import duties while the goods are in storage.
NAFTA
USA
Custom Broker
Mexican Export
Customs
Compound
Tran sfer /
Drayage
Operations
Custom Broker
US Federal
Compound
State
Compound
Long-Haul
trucking firm or
Freig ht
forwarder
Recipient/
Customer
Drayage
Operator
Long-Haul
trucking firm or
Freig ht
forwarder
Drayage
Operator
Shipper/
Customer
Vehicle and
Driver Inspection
understand this slide. He will ask this with the NAFTA question
Maquiladora
Maquiladora are factories in Mexico run by a foreign
company and exporting its products to the country of that
company.
A U.S. Manufacturer operates or subcontracts with a
facility in Mexico to manufacture, process, or assemble
products to capture labor savings.
U.S. manufacturers now operate more than 2,000 maquiladora
facilities in Mexico
Limited tariff duties (if any)
New directions
Locating factories and logistics facilities in countries
that use or consume the products.
Focused production
A plant produces only one or two products
Typically located in different countries requiring a
global logistics system
Intel example (journey of Intel microprocessor chip)
DISTRIBUTION AND
WAREHOUSING
Arunachalam Narayanan
Distribution
Facilitys Functionality
Accumulation
Sortation
Allocation
Assortment
Distribution tradeoffs
External tradeoffs
Number of distribution centers vs. cost of transportation
Number of distribution centers/warehouses vs. Cost of
inventory
Cost of additional facilities vs. level of customer service
Internal tradeoffs
Space vs. equipment
Equipment vs. people
People vs. space
Distribution Challenges
Labor availability
Demand variation
Increasing customer requirements
Managing all cost trade offs
Own or contract?
Benefit of contracting, dont have pay for facilities or personnel
It comes down to volume, cost and risk of the operation
A facility view
General guidelines
Facility design should be flexible
Proper use of automation and materials-handling
equipment
Slotting (next slide)
Guidelines based on products
High value goods must be safe-guarded against
pilferage
Temperature sensitive products in refrigerated areas.
Hazardous materials must be stored separately
Slotting by popularity
Slotting
Product placement within the facility for the purpose
of optimizing material handling and space
efficiency.
Common criteria
Popularity
Unit Size
Cube
Slotting by popularity
Class based Storing strategies
Routing strategy
By routing pickers we can increase productivity and ensure
safety. Optimal routes are not available for all layouts, it may
seem illogical for picker and may cause congestion
Routing Strategy
Layout of warehouse
Number of aisles, length and width of warehouse
Layout of warehouse
Number of cross aisles or type of cross aisles
i think this
Distribution Execution
Product-Handling Functions (terminologies)
Receiving transferring goods into facility
Put away moving goods into storage locations
Order picking selecting goods for customers
Replenishment moving product from storage locations to picking slots
Shipping loading goods for delivery
Support Functions
Inventory control
Safety, maintenance, and sanitation
Security
Performance analysis
Information technology
Primary DC process
End result
Less wastage
Safe space in truck (20% extra space in trucks)
Sorting systems
Help in storage
Distribution Metrics
Customer Facing metrics
Order accuracy and order completeness
Timeliness
Perfect order Index (POI)
Delivered to the right place
At the right time
In defect-free condition
With the correct documentation, pricing, and invoicing
Distribution Metrics
Internal Measures
Distribution cost efficiency
US warehousing and distribution cost is $119 billion in 2009
Measures Used
Best in class
performance
Asset utilization
Most often used goal is 80 to 85% of DC capacity
Resource productivity
Distribution costs averaging nearly 10 percent of a sales dollar
Resource efficiency
Compares activity completion to expected time
this chapter-learn all the problems, practice the problem from the inverntory assignment, question 1 and 3 will be in the lest in the writing portion.
Understand the relationship of all the equation and what will affect the equation
Inventory Basics
Inventory: Stock of any item or
resource used by the firm.
Raw Material
Work in Progress
Finished Goods
Spare parts, supplies, etc.
Nature of Demand
Perpetual (Constant) Demand
Sufficiently long enough demand.
Seasonal Demand.
Spike(s) in the demand pattern.
Terminating Demand.
Zero demand in the foreseeable future.
Derived Demand.
Dependent demand. (MRP)
CV2
Coefficient of variation of demand
Std. dev of Demand / Average demand
Low
High
Erratic
(GammaDistribution)
Lumpy
(PoissonDistribution)
Smooth
(Normal distribution)
Intermittent
(PoissonDistribution)
CV2 = 0.49
Low
ADI = 1.32
Erratic Demand
Frequent but unreliable demand
Lumpy Demand
know this
ABC Analysis
Divides on-hand inventory into mainly 3 classes
A class, B class, C class
More possible
ABC methods
Based on
GMROI
Hits
Sales
Product Lifecycle
Logistics Cost
Managerial Review
% Annual $ Usage
100
80
60
% $ Vol
80
15
5
% Items
15
30
55
40
20
0
0
50
100
% of Inventory Items
Inventory Objectives
Product Availability
At a 5% Stockout Rate
= (0.95) 4
= (0.95) 10
Whats more important to your customer, the item or the order fill
rate?
Inventory Objectives
Product Availability
Inventory Objectives
Product Availability
Item Combination
Frequency
Prob. of Filling
Marginal
on Order
of Order
Order Complete
Value
0.1
0.1
0.2
A, B
0.2
A, C
0.1
B, C
0.1
A, B, C
0.2
___________
1.0
Inventory Objectives
Relevant Costs
Out-of-Stock Costs.
Procurement Costs.
Lost-Sales Cost.
Order preparation.
Profit Loss.
Order transmission.
Goodwill Loss.
Backorder Cost.
Additional order handling.
Additional transportation.
Carrying Costs.
Customer Service ,
i.e., Stock Availability
Minimum cost
reorder quantity
Cost
Total cost
Procurement cost
Stockout cost
Replenishment quantity
Q
*S+I*C*
D
*k* d2 *
+I*C* SS+
2
2 +
LT
LT *
*E(Z)
Holding cost
Holding cost or carrying cost or
Inventory cost (I)
Consists of
Cost of storage (Labor and space)
Taxes
Insurance
Cost of Capital
Loss/ Damage/ Obsolescence
Inventory System
An inventory system is the set of policies and controls
that monitor levels of inventory and determines what
levels should be maintained, when stock should be
replenished, and how large orders should be
Inventory policy answers two questions:
How much to order?
When to order?
Inventory Systems
Push System
Pull system (basic model)
Single-period Model (Newsboy)
Multi period models (Repetitive
replenishments)
Demand
forecast
Q1
Warehouse #1
A1
A2
Plant
Q2
Warehouse #2
A3
Demand
forecast
Q3
A = Allocation quantity to each warehouse
Q = Requested replenishment quantity
by each warehouse
Warehouse #3
Demand
forecast
Inventory Control
Push Approach
Appropriate when production quantities exceed the shortterm inventory requirements.
When purchasing or production economies of scale outweigh the
benefits of minimum inventory levels of pull system
Warehouse
1
2
3
Current Stock
Level, units
400
350
0
Forecasted Forecast
error (std. dev.)
demand,
units
units
2,300
1,400
900
4,600
100
55
20
Areas under
Standardized
Normal
Distribution
.00
0.5000
0.5398
0.5793
0.6179
0.6554
.01
0.5040
0.5438
0.5832
0.6217
0.6591
.02
0.5080
0.5478
0.5871
0.6255
0.6628
.03
0.5120
0.5517
0.5910
0.6293
0.6664
.04
0.5160
0.5557
0.5948
0.6331
0.6700
.05
0.5199
0.5596
0.5987
0.6368
0.6736
.06
0.5239
0.5636
0.6026
0.6406
0.6772
.07
0.5279
0.5675
0.6064
0.6443
0.6808
.08
0.5319
0.5714
0.6103
0.6480
0.6844
.09
0.5359
0.5753
0.6141
0.6517
0.6879
0.5
0.6
0.7
0.8
0.9
0.6915
0.7257
0.7580
0.7881
0.8159
0.6950
0.7291
0.7611
0.7910
0.8186
0.6985
0.7324
0.7642
0.7939
0.8212
0.7019
0.7357
0.7673
0.7967
0.8238
0.7054
0.7389
0.7704
0.7995
0.8264
0.7088
0.7422
0.7734
0.8023
0.8289
0.7123
0.7454
0.7764
0.8051
0.8315
0.7157
0.7486
0.7794
0.8078
0.8340
0.7190
0.7517
0.7823
0.8106
0.8365
0.7224
0.7549
0.7852
0.8133
0.8389
1.0
1.1
1.2
1.3
1.4
0.8413
0.8643
0.8849
0.9032
0.9192
0.8438
0.8665
0.8869
0.9049
0.9207
0.8461
0.8686
0.8888
0.9066
0.9222
0.8485
0.8708
0.8907
0.9082
0.9236
0.8508
0.8729
0.8925
0.9099
0.9251
0.8531
0.8749
0.8944
0.9115
0.9265
0.8554
0.8770
0.8962
0.9131
0.9279
0.8577
0.8790
0.8980
0.9147
0.9292
0.8599
0.8810
0.8997
0.9162
0.9306
0.8621
0.8830
0.9015
0.9177
0.9319
1.5
1.6
1.7
1.8
1.9
0.9332
0.9452
0.9554
0.9641
0.9713
0.9345
0.9463
0.9564
0.9649
0.9719
0.9357
0.9474
0.9573
0.9656
0.9726
0.9370
0.9484
0.9582
0.9664
0.9732
0.9382
0.9495
0.9591
0.9671
0.9738
0.9394
0.9505
0.9599
0.9678
0.9744
0.9406
0.9515
0.9608
0.9686
0.9750
0.9418
0.9525
0.9616
0.9693
0.9756
0.9429
0.9535
0.9625
0.9699
0.9761
0.9441
0.9545
0.9633
0.9706
0.9767
2.0
2.1
2.2
2.3
2.4
0.9772
0.9821
0.9861
0.9893
0.9918
0.9778
0.9826
0.9864
0.9896
0.9920
0.9783
0.9830
0.9868
0.9898
0.9922
0.9788
0.9834
0.9871
0.9901
0.9925
0.9793
0.9838
0.9875
0.9904
0.9927
0.9798
0.9842
0.9878
0.9906
0.9929
0.9803
0.9846
0.9881
0.9909
0.9931
0.9808
0.9850
0.9884
0.9911
0.9932
0.9812
0.9854
0.9887
0.9913
0.9934
0.9817
0.9857
0.9890
0.9916
0.9936
2.5
2.6
2.7
2.8
2.9
0.9938
0.9953
0.9965
0.9974
0.9981
0.9940
0.9955
0.9966
0.9975
0.9982
0.9941
0.9956
0.9967
0.9976
0.9982
0.9943
0.9957
0.9968
0.9977
0.9983
0.9945
0.9959
0.9969
0.9977
0.9984
0.9946
0.9960
0.9970
0.9978
0.9984
0.9948
0.9961
0.9971
0.9979
0.9985
0.9949
0.9962
0.9972
0.9979
0.9985
0.9951
0.9963
0.9973
0.9980
0.9986
0.9952
0.9964
0.9974
0.9981
0.9986
3.0
3.1
3.2
3.3
3.4
0.9987
0.9990
0.9993
0.9995
0.9997
0.9987
0.9991
0.9993
0.9995
0.9997
0.9987
0.9991
0.9994
0.9995
0.9997
0.9988
0.9991
0.9994
0.9996
0.9997
0.9988
0.9992
0.9994
0.9996
0.9997
0.9989
0.9992
0.9994
0.9996
0.9997
0.9989
0.9992
0.9994
0.9996
0.9997
0.9989
0.9992
0.9995
0.9996
0.9997
0.9990
0.9993
0.9995
0.9996
0.9997
0.9990
0.9993
0.9995
0.9997
0.9998
Total Requirements
1
2
3
10
Warehouse
(1)
(2)
Total Req.
On-hand
stock
(3)= (1)-(2)
Net Req.
(4)
Proration of
excess units
(5)=(4)+(3)
Allocation
units
2
3
Total
aTotal
11
know 2 of these
he asked to write
Assumptions:
Instantaneous and complete replenishment of the material
Known and Constant demand
Known and Constant Lead time
Fixed price
Fixed order cost & inventory holding cost.
No backorders or lost sales.
2 of EOB assumption
Demand Rate
Q
Reorder
Point, R
0
Lead
time
Order
Order
Placed Received
Lead
Time
time
Order
Order
Placed
Received
12
Mathematical Description
How Much to Order
Total Cost = Ordering + Holding Cost
TC
(D/Q) S + ( Q/2)(i C)
where
D
C
S
Q
H
= annual demand
= item cost
= ordering cost
= order quantity
= holding cost = iC
Mathematical Description
At optimality:
ordering costs = holding costs
(D / Q) S =
Q* =
(Q / 2) H
2 DS
H
(D/Q)* S
Q*
Quantity
13
2 D S
H
D
=N =
Q*
= Q* =
d =
D
Working Days
ROP = d
/ Year
LT
=T =
Working Days
/ Year
D = Annual Demand
S = Setup (order) cost per order
H = Holding (carrying) cost
d = Demand per day
LT = Lead time in days
EOQ Model
Given:
d = 50 units/week
I = 10%/year
S = $10/order
C = $5/unit
LT = 3 weeks
TC ordering cost
DS IC Q
Q
2
carrying costs
EOQ Model
14
EOQ Model
Henrys Computer Store sells a printer for $200. Demand is constant
during the year, and annual demand is forecasted to be 600 units.
Holding cost is $20 per unit per year, whereas the cost of ordering is
$60 per order. Currently, the company is ordering 12 times per year (50
units each time). There are 250 working days per year, and the leadtime is 10 days.
a. Given the ordering policy of 50 units at a time, what is the total of the
annual ordering and holding cost?
b. If the company used the absolute best inventory policy, what would be
the total of ordering and holding costs?
c.
15
POQ Model
Inventory Levels
Inventory Level
Production portion of cycle
Supply
Begins
Time
Supply
Ends
POQ Model
Inventory Levels
Inventory Level
Inventory level with no demand
Production
Portion of Cycle
Q*
Supply
Begins
Supply
Ends
Max. Inventory
Q(1- d/p)
Time
16
Reorder Point
When to Place an Order
Reorder point when demand is certain
R = demand during replenishment lead
R = dL
Reorder point when demand is not certain
(assuming there is no lead time variation)
R = expected demand + safety stock .
R =
dL
lead time word. He meant for you to z value and multiply that
demand during lead time number. Look over this equation on
your left
Question
Why
L
*L
And not
L
17
Safety Stock
Probability of Stock out
Q
R
0.5
0
Z
Safety Stock
0.5
Safety Stock
Probability of Stockout
Reorder point with safety stock.
R = dL + Z L
C = $5/unit
LT = 3 weeks
P = 99%
Q*
18
P
Week 1
Week 2
+
d=10
d =50
Week 3
d=10
d=10
d =50
=17.3
d =50
X = 150
X'
d LT
'
DDLT
50(3) 150
LT
ROP d * LT
10 3 17.3
z(
'
DDLT
Hence,
ROP X z
DDLT
19
LT ( d2 ) d 2 (
2 )
LT
20
Safety Stocks
Typical SS
After Sales Force
Involvement
Planner Initial
Safety Stock
Setting
Average
Inventory
ROP
Constant Safety
Stock
Time
Lead
Time
Incoming Orders
ROP
Safety
Stock
Excess Inventory
Time
21
there is one problem where he asked you to calculate safety stock and give you z value =0. then your safe stock would = 0 too
another different question where he asked: safety stock depend on what? it should be all 3 of these factore: fill rate or cust. service level, demand and lead time
Fill rate
Increase - SS increases
Decrease - SS decreases
Demand variability
Lead Time variability
9500
8500
Total Cost
7500
6500
5500
4500
0.
50
00
00
0.
55
00
0
0.
60 0
00
00
0.
65
00
00
0.
70
00
0
0.
75 0
00
0
0.
80 0
00
00
0.
85
00
00
0.
90
00
00
0.
95
00
0
0.
96 0
00
00
0.
97
00
0
0.
98 0
00
00
0.
99
00
0
0.
99 0
50
00
0.
99
90
00
0.
99
99
0
0.
99 0
99
9
0.
99 0
99
99
1.
00
00
00
3500
Service Level
EOQ Assumptions
Assumptions:
Constant demand
Constant lead time
Price
Fixed order cost
Inventory holding cost.
No backorders or lost sales.
22
Discount
(%)
Discount Price
(C)
0 to 999
No discount
$5.00
1,000 to 1,999
$4.80
$4.75
23
Q OPT =
2DS
=
iC
2(5,000)(4 9)
= 700 units
0.2(5)
Q OPT =
2DS
=
iC
2(5,000)(4 9)
= 714.4 units
0.2(4.80)
Q OPT =
2DS
=
iC
2(5,000)(4 9)
= 718.2 units
0.2(4.75)
TC = DC +
D
Q
iC
S +
Q
2
TC(0-999)=(5000*5)+(5000/700)*49+(700/2)(0.2*5)
= $25,700
TC(1000-1999) = (5000*4.8)+(5000/1000)*49+(1000/2)(0.2*4.8)
= $24,725
TC(2000&more) = (5000*4.75)+(5000/2000)*49+(2000/2)(0.2*4.75)
= $24,822.50
Finally, we select the least costly Qopt, which is 1000 units.
Quantity Discount
24
ROP, or SS, or
DDLT. Im not
Application:
Supplies, components & end items.
Variations:
Two bin system:
Bin 1 = Q - R
Bin 2 = R
(s,S) policy:
When inventory is less than or equal to s, order up
to S.
(R,mQ):
When inventory is less than or equal to R order
multiples of Q.
25
Planner Selected
Min is based on a guess of how
long it takes to get product in, how
much the customer will need
during that time period, and a
rough guess at forecast accuracy
(the last two are often called a
fudge factor).
Max is typically based on a
convenient order size (suppliers
minimum order size or a rough
guess at typical customer order
patterns).
DDLT
FUDGE FACTOR
Demand
Var.
Item 1
99 %
Low
Item 2
90 %
Low
High
Item 3
95 %
High
Low
Item 4
99 %
High
High
Item 5
75 %
High
High
Coordinated Replenishment
26
Coordinated Replenishment
140
120
"A"
Reorder
Point
100
Item to Be
Ordered
80
"B"
Reorder
Point
60
40
20
0
A
know this
Best Practices
Coordinating purchases of items from the same supplier across
business units (divisions) to capture transportation economies of
scale and increase supplier rebates.
Quantifying holding costs and compare to different products to
determine which should be ordered in larger amounts to capture
freight and handling efficiencies.
27
A fruit grower stocks its dried fruit products in 12 warehouses around the
country. What is the turnover ratio for the distribution system?
Warehouse
1
2
3
4
5
6
Annual
Average
warehouse
inventory
throughput, $
level, $
21,136,032
2,217,790
16,174,988
2,196,364
78,559,012
9,510,027
17,102,486
2,085,246
88,228,672 11,443,489
40,884,400
5,293,539
Turnover ratio
Warehouse
7
8
9
10
11
12
Totals
Annual sales
Average inventory
Annual
warehouse
throughput, $
43,105,917
47,136,632
24,745,328
57,789,509
16,483,970
26,368,290
425,295,236
warehouse
Average
inventory
level, $
6,542,079
5,722,640
2,641,138
6,403,076
1,991,016
2,719,330
43,701,344
$425,295,236
$43,701,344
9 .7
knwow what have trade offs? All of the model have trade off
Fill rate
Safety stock
Stock out cost
learn the example he give on blackboard. n=4 and Ii=2000. He asked what
happen if he reduce to 3 warehouse.
Always calculate the IT first and used that IT to divide square root of n
IT Ii n
IT = amount of inventory at one location.
Ii = amount of inventory at each of n locations.
n = number of stocking points.
28
I / n
T
Inventory-Throughput Curve
Warehouse average inventory, Ii ($000s)
3000
2500
2000
Ii = 1.57Di0.72
R = 0.85
1500
1000
500
0
0
10000
20000
30000
40000
50000
29
P&G
Large Supermarket Chains--Direct Sales
Smaller Supermarkets--Distributors
Computer Industry
Dell -HP -Gateway --
Distribution Strategies
Arunachalam Narayanan
Response Time
Product Variety
Product Availability
Customer Experience
Time-to-Market
Order Visibility
Returnability
Transportation Costs
Cost
Customer Service
Number of Facilities
Number of Facilities
Facility Costs
Number of Facilities
Number of Facilities
Response Time
Total Logistics Cost
Number of Facilities
From textbook
Figure 7.7
Direct to Consumer Fulfillment
know all fulfillment model-he will give you the term and definition and ask which one is right
Store Fulfillment
The order is placed through the Internet site and sent to the nearest store
for customer pick up.
Advantages
low start-up costs for the retailer
returns can be handled through the store
Disadvantages
conflict may arise between inventories
must have real-time visibility to in-store inventories
stores lack sufficient space to store product
Outsourced fulfillment
Another firm will perform the fulfillment.
Advantage - low start-up costs and possible
transportation of economies (for small and medium
firms)
Disadvantage loss of control over service levels
Disadvantage:
Storage space at the store for pickup items a problem
Example
Current Wal-Mart ship to store option
Other Considerations:
Inventory/Risk Pooling
Demand Variability & Aggregation
Facility Consolidation
Safety Stock and Average Inventory
What Happens to Inventory Levels When 2 Warehouses
Are Consolidated?
Square root rule of inventory
Why is the variability less?
know this. it is one of the write out question-and he asked you to cal average inventory. He wont give you that table so learn the step
Example
Example (contd.)
Week
Example (contd.)
Std
Dev.
CVAR
Avg.
Dem.
During
LT
Safety
Stock
NJ
Centralized
39.25
38.63
77.88
13.18
12.05
20.71
0.34
0.31
0.27
39.25
38.63
77.88
1.125
1.250
2.375
1.36
1.58
1.92
1.21
1.26
0.81
1.125
1.250
2.375
8
58
MA
33
45
37
38
55
30
18
NJ
46
35
41
40
26
48
18
55
Total
79
80
78
78
81
78
36
113
MA
NJ
Total
Other considerations
ROP
Avg.
Inv.
Product A
MA
Product B
Avg.
Demand
Product A
24.91 64.16
22.77 61.39
39.15 117.02
132.1
131.0
186.0
91
88
132
26.3%
22.36
23.57
32.49
13.74
14.77
19.88
30.3%
Inv. Reduc.
Product B
MA
NJ
Centralized
2.56
2.99
3.63
3.69
4.24
6.01
Inv.Reduc.
OUTBOUND
8:00
Products
Flow Through in
Less than 24/48
Hrs
10:00
12:00
G
14:00
E
D
Returnables
10
10
B
10
10
10
10
10
B
10
50
10
10
10
50
50
10
10
10
G
10
10
10
10
10
10
10
10
10
10
50
E
10
10
10
10
10
10
50
50
Disadvantages
Sometimes longer distance traveled
Airlines
Inflexibility in routes