Boston Retail Company (clothing chain) is working with several suppliers of new and second-hand clothes. Store managers have the freedom to decide which supplier(s) they wants to work with and the amount and types of clothes they want to order for their stores in each season. The prices charged by each supplier are based on the price per piece of cloth and the total number of clothes ordered. A store manager first places the order with a supplier. After receiving and accepting the order, the supplier bills the store and the store pays the supplier to have the order delivered. A quality and quantity test is performed when receiving the order. After the test, the employees store and display the clothes in their store. When the clothes have been stored, staff needs to handle (e.g., check, iron, fold) each piece of the clothes so that they are in good shape and conditions. At the end of every season, the store needs to get rid of the clothes that are out of season and/or have minor damages, by disposing, recycling, or donating them. Boston Retail Company employs both full-time and part-time employees. Each store manager is responsible for selecting and hiring employees for her own store. The full-time employees are trained shop assistants. It is not easy to recruit good full-time shop assistants and it takes at least 10 hours to train each of them, so that they can manage all aspects of the store in a professional and reliable way. Besides the full-time shop assistants, store managers can also hire part-time employees to help with selling during weekends and holidays. Most part-time employees are local college students. Each part-time employee works as 60% of a full-time employee. The part-time employees are only responsible for communications with customers and selling, without performing any other tasks (e.g., managing inventory or accounts). The turnover rate of these part-time employees is very high. Below is the information of an order that a store manager is considering to place with a second-hand cloth supplier. Category Costs (USD$) Original Price 12000 Ordering 500 Delivering 650 Invoicing 240 Quality and Quantity Test 300 Handling and Storage 350 Elimination 600 Because this is the first time that the store swap to this supplier, the store needs to pay for an extra 100 dollar as the supplier swapping fee. Based on the given information, calculate the costs incurred by the company at each hierarchical level Supplier level = ??? $ Order level = ??? $ Unit level = ??? $
Boston Retail Company
Boston Retail Company (clothing chain) is working with several suppliers of new and second-hand clothes. Store managers have the freedom to decide which supplier(s) they wants to work with and the amount and types of clothes they want to order for their stores in each season. The prices charged by each supplier are based on the price per piece of cloth and the total number of clothes ordered. A store manager first places the order with a supplier. After receiving and accepting the order, the supplier bills the store and the store pays the supplier to have the order delivered. A quality and quantity test is performed when receiving the order. After the test, the employees store and display the clothes in their store. When the clothes have been stored, staff needs to handle (e.g., check, iron, fold) each piece of the clothes so that they are in good shape and conditions. At the end of every season, the store needs to get rid of the clothes that are out of season and/or have minor damages, by disposing, recycling, or donating them.
Boston Retail Company employs both full-time and part-time employees. Each store manager is responsible for selecting and hiring employees for her own store. The full-time employees are trained shop assistants. It is not easy to recruit good full-time shop assistants and it takes at least 10 hours to train each of them, so that they can manage all aspects of the store in a professional and reliable way. Besides the full-time shop assistants, store managers can also hire part-time employees to help with selling during weekends and holidays. Most part-time employees are local college students. Each part-time employee works as 60% of a full-time employee. The part-time employees are only responsible for communications with customers and selling, without performing any other tasks (e.g., managing inventory or accounts). The turnover rate of these part-time employees is very high.
Below is the information of an order that a store manager is considering to place with a second-hand cloth supplier.
|
Category |
Costs (USD$) |
|
Original Price |
12000 |
|
Ordering |
500 |
|
Delivering |
650 |
|
Invoicing |
240 |
|
Quality and Quantity Test |
300 |
|
Handling and Storage |
350 |
|
Elimination |
600 |
Because this is the first time that the store swap to this supplier, the store needs to pay for an extra 100 dollar as the supplier swapping fee.
Based on the given information, calculate the costs incurred by the company at each hierarchical level
Supplier level = ??? $
Order level = ??? $
Unit level = ??? $
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