4. What is the total lost profit or cash flow from an 85% on-time delivery rate? 5. What is the total lost profit or cash flow from a 95% on-time delivery rate? 6. What is the percentage reduction in total lost profit or cash flow from this 10% increase in on-time delivery?

4. What is the total lost profit or cash flow from an 85% on-time delivery rate? 5. What is the total lost profit or cash flow from a 95% on-time delivery rate? 6. What is the percentage reduction in total lost profit or cash flow from this 10% increase in on-time delivery?

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

Chapter2: The Purchasing Process

Section: Chapter Questions

Problem 1GPE

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SLO-3.1 The major reason supply management can greatly improve a firm’s return on investment (ROI) is: A) the reduction of post ownership costsB) the reduction of downtime costsC) the reduction of quality costsD) the reduction of acquisition costE) every dollar saved in purchasing is = to a new dollar of profit NEWSLO-3.2 Which of the following is generally not true about supply management and the bottom line? A) Purchased items account for a large percentage of the cost of goods sold. Hence, a reduction in cost of purchased goods has a major impact on the bottom lineB) A Euro increase in sales is equivalent to a Euro decrease in materials cost in impacting the bottom lineC) Outsourcing allows firms to focus on their core competencies, which reduced potential for waste, which then can improve the bottom lineD) A dollar saved in materials cost is usually considered a dollar increase in profit, which directly translates into bottom line savingsE) Supply management can work…
Please only answer parts f) rank pays 50,000/year in fixed costs. If his shop sells Q cups of tea in a year, the other costs add up to be 10000/Q + Q/20000 per cup of tea What is the: a) average fixed cost, b) average total cost c) variable cost and marginal cost (derived from the the variable cost) d) the annula production level such that the average variable cost is minimised e) the difference between the marginal cost and average variable cost at this production level f) supports Frank's cafe is small and cant influence market price. If price is P=4 use the forumula for marginal cost to the find the cafe's (short-run) profit maximising quantity of tea in a year. Also, show that at profit maximising quantity, price is greater than ATC so that Frank will operate
Baker Mfg Inc. wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory. Baker Mfg. Inc. Net Revenue $27,500 Cost of sales $20,000 Inventory $1,210 Total assets $16,880 Part 2 a) What is Baker's inventory turnover? _______ times per year (round your response to two decimal places). Part 3 b) What is Baker's percentage of assets committed to inventory? __________% (enter your response as a percentage rounded to two decimal places). Part 4 c) How does Baker's performance compare to the industry leaders? ▼ Better? In line with industry? Worse?
Your new company has decided to use a periodic reviewsystem. You have learned that average weekly demand is 48units per week with a standard deviation of 8 units. You believethat your cycle-service level should be 94 percent. Lead timeis two weeks. Initially, you believe that you should do a reviewevery Friday. Determine the required safety stock and the targetinventory level.(a) How would this procedure change if the cycle-servicelevel needed to be 98 percent?(b) What is the impact of changing the review period fromevery Friday to every other Friday, assuming that thecycle-service level is 94 percent?
1) What is the total demand of an enterprise with an economic order quantity of 1,500 units, a cost of 11.250 TL for each order, and 75 TL for one unit of inventory?a) 20,000b) 17,500c) 7,500d) 12,500f) 2,500 2) What is the total inventory cost of this business?a) 200,000b) 239,000c) 185,250d) 168,750e) 218,500
how does procter and gamble bring together inventory and quality management?
Purple just sold Fred $4.9 billion of computer equipment. Fred immediately takes delivery and pays $1.6 billion in cash upon taking delivery; the remaining $3.3 billion is due n 30 days. Inventory associated with the order is $2.4. Ignore taxes. What is the impact of this transaction on: a. Revenues, b. Earnings, c. Receivables, d. Inventory, e. Cash Question content area bottom Part 1 a. Revenues change by $negative 3.3−3.3 billion. (Round to one decimal place. Use a negative sign for a decrease in value.) b. Earnings change by $enter your response here billion. (Round to one decimal place. Use a negative sign for a decrease in value.) c. Receivables change by $enter your response here billion. (Round to one decimal place. Use a negative sign for a decrease in value.) d. Inventory changes by $negative 9−9 billion. (Round to one decimal place. Use a negative sign for a decrease in value.) e. Cash changes by $enter your response here million.…
The most critical challenge for Chase in my opinion, was customer retention. My analysis of the value of the 100k points and point accumulation rate vs annual and merchant fees and interest suggested that Chase is actually spending most of the merchant fees on points (merchant fees are 1.5 to 2.2 cents/$, point accumulation is 1.5 cents/$) and $300 of the $450 annual fee on travel credit. I assumed that interest income would be small, just enough to cancel out administrative expenses, because affluent customers with plenty of money don't need to run balances and know how to manage their finances. At this rate, even with high spending customers, per customer annual margin will be about $400 so it could take between 3 and four years to pay off the initial investment in points alone (ignoring other customer acquisition costs, like advertising). Since retention rates are typically 60-90%, Chase could easily lose money if retention wasn't high. I suggested that they offer a retention…
With respect to inventory management, is it better to have an “overstock” than a “stockout”? Why? Why not?
Arrow Distributing Corp. likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. Net Revenue $16,100 Cost of sales $12,450 Inventory $1,100 Total assets $8,460 Part 2 a) What is its weeks of supply? enter your response here weeks (round your response to two decimal places). Part 3 b) What percentage of Arrow's assets are committed to inventory? enter your response here% (enter your response as a percentage rounded to two decimal places). Part 4 c) What is Arrow's inventory turnover? enter your response here times per year (round your response to two decimal places). Part 5 d) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, is ▼ worse the same better .
Joel is the RM for the City Center Plaza hotel. He knows that under his franchise agreement, he pays an 8 percent franchise fee and 3 percent marketing fee on all revenue generated from room sales. Additional fees for using the hotel’s CRS are $2.00 per each room reserved. Internet service provider (IDS) related charges paid by the hotel for rooms sold through Internet sites including uberhothotels.com are $10.00 per room sold. Given this information, help Joel complete the revenue estimate worksheet presented below. Net ADR Yield Estimate Worksheet: City Center Plaza Distribution Channel Group rooms Third-party merchant Rooms sold 80 100 Standard rate $185 $160 Gross revenue Franchise fee (8%) Franchise marketing fee (3%) Franchisor's CRS fee ($2 per room) IDS fee Net total revenue Net ADR yield
The task I am struggling with. What percentage of cost of a Dell computer reflects inventory costs? Assume Dell’s yearly cost is 40% to account for the cost of capital for financing the inventory the warehouse space, and the cost of obsolescence. In other words Dell incurs a cost of $40 for a $ 100 component that is in the company’s inventory for one entire year. In 2001 Dells 10-k reports showed that the company had $400 million in inventory and COGS of $ 26.442 millionThank you very much for your help.