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Business

Operations Management

How can this goal be achieved? Are there alternative solutions which might also be effective?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Question 6 of 10 Moving to another question will save this response. Question 6 The following transactions relate to the SHEHNILA CORP. for the month of November 2015: Product - A Product – B Production 10,000 units 8,000 units Beginning Inventory 1,000 units 900 units Ending Inventory 2,000 units 100 units Unit Cost applicable to inventories and Production Direct Material Rs. 4 per unit Rs. 3 per unit Direct Labour Rs. 10 per unit Rs. 20 per unit Factory Overhead Rs. 7 per unit Rs. 14 per unit Actual FOH was Rs. 182,400, under or over applied factory overhead is to be adjusted in Cost of Goods Sold. Calculate Conversion Cost.
Question 2 - Rohe (Hong Kong) Ltd is a pharmaceutical company which manufactures and supplies various drugs for drug stores in Asia. Currently, Rohe (Hong Kong) Ltd has four factories A, B, C and D. Management has decided to build a new factory at a location central to these factories. Information regarding the yearly demands and the map coordinates for the four factories are shown in below table. Factories e Demand e x-coord- 9,000- y-coorde A- 20e 130e Be 3,000 60- 404 Ce 5,000- 70- 100- De 16,000- 90 30 (a) Determine the map coordinates of the new factory. (b) Suggest and elaborate TWO other factors that need to consider in the selection of location. e
Problem 3-14 (Algo) Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for this year was as follows: MONTH DEMAND (UNITS) 4,150 4,25e 3,950 4, 350 4,95e 4,650 5,25e 4,850 5,35e 5,65e 6,25e 5,95e January February March Аpril Мay June July August September October November December a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round Intermedlate calculatlons. Round your answers to 2 decimal places.) Month Forecast January February March April May June July August September October November December b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors…
Question 4 Right now is Quarter 2 of 2020. You are developing an aggregate production plan for 2021. rvey Suppose the beginning inventory at the first quarter of 2021 is estimated to be 196 units. ing The demand for Quarter 1 of 2021 is forecasted to be 1.208 units while the demand for Quarter 2 2021 is forecasted to be 891 units. Overtime production and subcontract will not be available in the first two quarters of 2021. If the regular production in Quarter 1 is 1,950 units and the regular production in Quarter 2 is 891 units, what is the ending inventory level in Quarter 2 of 2021?
Define INVENTORY CONTROL?
Case Problem: Specialty Toys You are an inventory specialist for Specialty Toys, Inc. The company sells a variety of new and innovative children's toys. You know that the preholiday season is the best time to introduce a new toy because many families use this time to look for new ideas for December holiday gifts. When the company discovers a new toy with good market potential, it chooses an October market-entry date. For you to get toys in your stores by October, you place one-time orders with manufacturers in June or July of each year. You are aware that demand for children's toys can be highly volatile. If a new toy catches on, a sense of shortage in the marketplace often increases the demand to high levels and large profits can be realized. However, new toys can also flop, leaving the company stuck with high levels of inventory that must be sold at reduced prices. The most important question you face is deciding how many units of a new toy should be purchased to meet anticipated…
3.May I know the correct option?
May 77.000 Problem 4 (Regression Analysis, Service Company) Bobby Gonzales owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. Gonzales business is seasonal, with a heavy schedule during the summer months and the year-end holidays and a light schedule at other times. During peak periods there are extra costs. One of the major events Gonzales' customers request is a cocktail party. He offers a standard cocktail party and has developed the following cost structure on a per person basis. Food and bevernges Labor (0.5 hour x PIO per hour) Overhead (0.5 hour x P14 per hour) Total costs per person PI5.00 5.00 7.00 P27.00 Gonzales is quite certain about his estimates of the food, beverages, and labor costs but is not as comfortable with the overhead estimate. This estimate was based on the actual data for the past 12 months presented below. These data indicate that overhead costs vary with the direct labor- hours used. The…
16. Complete the following schedule and then answer Problems 16 and 17. Forecast requirements In transit On Hand 1 35 50 Projected available balance 30 Planned Shipments Shipping quantity = 50, Lead time = 1, Safety stock = 25 2 30 Period 3 45 What will the planned shipments be for periods 2, 3, and 4? a) 25 units for each period b) 50 units for periods 2 and 4; zero units for period 3 4 65 c) 50 units for each period d) 100 units in period 2, zero units in period 3, and 50 units in period 4 e) 75 units in period 2, 35 units in period 3, 20 units in period 4 17. What is the projected available balance for period 4? a) 50 units b) 55 units c) 60 units d) 65 units e) 75 units 5 30
Question 4 Santizit, Inc. produces a constant supply of hand sanitizer bottles (adjusted for seasonality) to its distributors. Recently the sales team increased their forecast to the distributors. With the updated sales forecast, the operations management met to discuss the need to revise their optimal, or economic, order quantity. During the meeting, your manager assigns you to calculate the economic order quantity of cases of hand sanitizer bottles that the plant would need to achieve to meet the forecasted supply to the distributors. The operations supervisor provides you with some key information. • There are 12 bottles in each innerpack. • Each case contains 5 innerpacks. • The average annual holding cost per case is $6. • The cost per order is $130. • The plant operates Monday through Friday and has two weeks per year that it is shut down for maintenance. The maximum inventory at the end of each production run is 4% greater than the demand. • Assume daily demand of 12,703 bottles…
Question 3 Regular output capacity is 130 units per month. Regular cost per unit = K600. Overtime cost per unit K900. Beginning inventory is 0 units. We have the forecast of engine demand shown below: a) Develop a chase plan that matches the forecast. Calculate the cost of the plan. b) Develop a level plan that uses inventory to absorb fluctuations. Compare the costs of the level plan to the costs of the chase plan from Part (a). Inventory carrying cost per unit per month = 20. Backlog cost per unit per month = K900. There should be no backlog in the final month. Month Forecast 1 120 2 3 135 140 4 120 End of assignment 1 5 125 6 125 7 140 = 8 135 Total 1,040