. Inc. is continuously seeking to reduce its supply chain inventory. The costs of products produced last year amounted to 7,48 million dollars and the inventory to 1,46 million dollars. This year, merchandise sold cost 8.57 million dollars and inventory spending 1,62 million dollars. a) What were the delivery weeks last year?

. Inc. is continuously seeking to reduce its supply chain inventory. The costs of products produced last year amounted to 7,48 million dollars and the inventory to 1,46 million dollars. This year, merchandise sold cost 8.57 million dollars and inventory spending 1,62 million dollars. a) What were the delivery weeks last year?

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. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
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?
1.Which of the following pertains to an efficient supply chain? A)It deals with innovative products B)The product life cycle will be short C)It is worthwhile to invest in good forecasting systems D)All of the above 2.Which of the following costs do not come under inventory carrying cost calculation? A)Investment in a software for updating stock position online B)Investment in stores space C)Salaries of procurement personnel D)Cost of maintaining the inventory stocks 3.Which of the following will have lesser bullwhip effect in a supply chain? A)Supply Chain co-ordination B)Opening more stocking points closer to the point of consumption C)Empowering the lower echelons of the inventory to take decisions on fulfilling the demand D)All of the above
1.Which of the following pertains to an efficient supply chain? A)It deals with innovative products B)The product life cycle will be short C)It is worthwhile to invest in good forecasting systems D)All of the above PS: OPTION D INCORRECT 2.Which of the following will have lesser bullwhip effect in a supply chain? A)Supply Chain co-ordination B)Opening more stocking points closer to the point of consumption C)Empowering the lower echelons of the inventory to take decisions on fulfilling the demand D)All of the above PS: OPTION B INCORRECT
Q1: Unfinished or semi finished goods are known as Select one: a. parts and components b. Goods in transit c. Tools and equipment d. Work in Progress Q2: Inventory can be found at all points in the supply chain Select one: a. False b. True
GCMMF (AMUL) — Managing Supply Chain to Align Customer Demands: Gujarat Cooperative Milk Marketing Federation (GCMMF) is the largest food products marketing organization in India. It is a state-level apex body of milk cooperatives in Gujarat, which aims to provide remunerative returns to farmers and also serves the interest of consumers by providing quality products and value for their money. It had Amul as the flagship brand, which is a market leader in milk products. The annual sales turnover of GCMMF in 2019-2020 was Rs. 38,542 crores. The product mix includes bread spread, powder milk, cheese, dessert, health drink and fresh milk. The State Marketing Federation comprises of 17 dairies, 10,675 villages and 2.2 million milk producers in Gujarat State. The value chain of GCMMF consists of -Milk Production - 2.6 million Farmers ;Milk Collection – 1,27,92 Village Co-op Societies; Milk Processing – 13 Milk Processing Unions; Marketing – GCMMF;Distribution – 3000 Distribution Points;…
Supply chain management covers the planning and execution of processes required to execute a product's flow, from acquiring goods and materials through production and distribution to the final customer. In what way does the company reach its maximum efficiency and how can we determine the improvement in the ultimate outcome?
Use a company that produces or delivers a service familiar to you. Using the SCOR five step model, describe (as good as you can) an effective supply chain model for your organization. Give as much detail as possible for each step.
1. Supply Chain focuses only on the physical movement of material and supplies Select one: a. False b. True 2. One of the other departments or functions within an organisation is referred to as servitization. Which of the following statements describes servitization. Select one: a. A transformation process wherein production organisations embrace a service orientation and/or develop more and better services b. Selling the goods or services of the organisation c. Purchasing raw materials, machinery and equipment for the organisation d. Providing management with the relevant information that will enable it to manage effectively and efficiently 3. For each supply chain driver, managers must make tradeoffs between Select one: a. Efficiency and responsiveness b. Costs and benefits c. Time and responsiveness d. Cost and performance e. Value addition The Certainty in decision environment of strategic decisions alludes to: Select one: a. Costly…
The item fill rate is categorized as which type of supply chain performance metric? Select one: a. Variety b. Delivery c. Customer service d. Flexibility e. Cost
12. Supply chain is a system of organizations, people, activities, data and properties involved in moving a productor service from supplier to customer. A. True B. False
One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently being assembled at your plant. The supplier has bid $0.10 per part, given a forecast you provided of 200,000 parts in year 1; 300,000 in year 2; and 500,000 in year 3. Shipping and handling of parts from the supplier’s factory is estimated at $0.01 per unit. Additional inventory handling charges should amount to $0.005 per unit. Finally, administrative costs are estimated at $20 per month. Although your plant is able to continue producing the part, the plant would need to invest in another molding machine, which would cost $10,000. Direct materials can be purchased for $0.05 per unit. Direct labor is estimated at $0.03 per unit plus a 50 percent surcharge for benefits; indirect labor is estimated at $0.011 per unit plus 50 percent benefits. Up-front engineering and design costs will amount to $30,000. Finally, management has insisted that overhead be allocated if the parts are made in-house…