Chris Sandvig Irigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 700valves; order cost is $7 per order, and annual inventory holding costs are $2.15 per unit.Vendor AQuantity1-14Vendor BPrice$34.75Vendor CPrice$34.50Vendor DPrice$34.2533.0031.00QuantityQuantity1-149PriceQuantity$35.001-241-4950-149150-29915-2434.7525-99100-19934.0033.7532.50150-29925-99100-199200-39933.5532.3532.80300+31.6030.50200-399300+31.1031.15400+400+30.75Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost?Chris Sandvig Irigation should orderunits at a time from Vendor B(enter your response as a whole number).

Cost minimization is the method involved with lessening consumptions on superfluous or wasteful…

Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 700 valves; order cost is $7 per order, and annual inventory holding costs are $2.15 per unit. Vendor A Price Vendor B Price $34.75 Vendor C Vendor D Quantity Quantity Quantity Price Price Quantity 1-149 150-299 1-14 $35.00 $34.50 $34.25 1-24 25-99 1-49 15-24 34.75 33.55 34.00 50-149 33.75 33.00 25-99 100-199 32.50 300+ 31.00 32.80 31.60 150-299 100-199 200-399 32.35 200-399 400+ 300+ 31.10 31.15 30.75 30.50 400+ Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost? Chris Sandvig Irrgation should orderunits at a time from Vendor B (enter your response as a whole number).

Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 700 valves; order cost is $7 per order, and annual inventory holding costs are $2.15 per unit. Vendor A Price Vendor B Price $34.75 Vendor C Vendor D Quantity Quantity Quantity Price Price Quantity 1-149 150-299 1-14 $35.00 $34.50 $34.25 1-24 25-99 1-49 15-24 34.75 33.55 34.00 50-149 33.75 33.00 25-99 100-199 32.50 300+ 31.00 32.80 31.60 150-299 100-199 200-399 32.35 200-399 400+ 300+ 31.10 31.15 30.75 30.50 400+ Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost? Chris Sandvig Irrgation should orderunits at a time from Vendor B (enter your response as a whole number).

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?
Belletricity Inc., a medium electronic circuit board manufacturer in the US, is a long-term supplier to Morden Equipment (ME). ME is Belletricity’s only client. Every year, Belletricity sells around 5 million circuit boards to ME, which occupies Belletricity’s full production capacity. In 2012, ME informed Belletricity that due to business expansion, ME would increase the purchase from 5 million to 15 million starting from 2013. Belletricity has been selling circuit boards at the unit rate of USD 0.8 to ME so far. Due to the future increase of the buying volume, ME therefore asked Belletricity a price cut to USD 0.6 each. After negotiation, ME agreed to buy from Belletricity at the price of USD 1.00 starting 2013, for three years consecutively, till 2015. a) What was the rationale behind that ME agreed to pay a higher price to buy from Belletricity for the next three years? b) Why could Belletricity successfully persuade ME to accept her requested price?
As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Selling Price Variable Cost % of Revenue Soft Drink $1.20 $0.70 24 Wine $2.00 $1.00 26 Coffee $1.00 $0.35 30 Candy $0.75 $0.30 20 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $250.00 (5 booths with 3 people each). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $80.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-even point in…
No written by hand solution The questions below refer to the following SAME paragraph: Suppose a retailer Mojo, holds safety stock for an item to accommodate a 98% service level with uncertain demand. There are two supply options: Supplier X taking 5 days to deliver replenishments, and Supplier Y taking 3 days to replenish. Both suppliers charge the same price for the item. Ignoring differences in fixed order costs, the retailer should choose: Group of answer choices Supplier X Option Y only if the critical ratio is less than 0.9 Option X only if the critical ratio is greater than 0.9 Supplier Y
Crystal Ltd currently orders 10 000 units per month of Product X. The demand for Product X is constant. There is only one supplier of Product X and the cost per unit is R10. The supplier has offered a 5% discount for orders of 20,000 units or more. The cost per order is R250 and the holding cost per unit per year is R1,50. Crystal Ltd is required to keep 750 units on hand at all times as safety stock. REQUIRED: Calculate the cost of the bulk discount offered by the supplier and net benefit, if any. Comment on your findings. Round off all your answers to two decimal places.
Jordan Airline routinely overbooks its flights from Dallas to Florida. Overbooking discounted seats can be expensive because providing a bumped passenger with a last-minute flight on a competing carrier can cost $2,200. A 150-passenger jet costs about $150,000 to operate from Raleigh to Atlanta. The average ticket price is $2,000. Table. The frequency of no-shows NO-SHOWS FREQUENCY 1 15 2 10 3 10 4 5 5 5 6 5 a. how many seats should be overbooked? (show your calculations) b. Korean Airline increased the average ticket price from $2,000 to $3,000 on its Atlanta/Seoul route for the holidays. How would the increased ticket price affect the number of seats overbooked? (show your calculations)
ou may need to use the appropriate technology to answer this question. A daily newspaper is stocked by a coffee shop so its patrons can purchase and read it while they drink coffee. The newspaper costs $1.14 per unit and sells for $1.75 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with ? = 150 and ? = 30. (a)What is your recommended daily order quantity for the coffee shop? (Round your answer to the nearest integer.) (b)What is the probability that the coffee shop will sell all the units it orders? (Round your answer to four decimal places.) (c)In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate? Find the recommended order quantity at 25¢ per unit. (Round your answer to the nearest integer.) What happens to the coffee shop's order quantity as the rebate is reduced? The…
QUESITON 26 Calculate the percentage of assets committed to inventory, where Panda lnc has $44,000,000 in total assets and 11,400,000 of inventory. QUESITON 27 Supply chain management is ... A.a set of procedures connecting suppliers to customers B.Design, operation and improvement of productive systems C.A sequence of activities across organizations that are involved in producing and delivering a product or service D.a series of activities from suppliers to customers that add value to a product or service QUESITON 28 SCOR stands for A.Supply Chain Operations Reference model B.Supply Chain Operations Resilience C.Supply Chain Organsational Resources D.
The case above discusses design and innovation at Dyson Appliances Limited (DAL). As a purchasingmanager, advice on the best way to source the relevant material required in the production of DAL’s firstvacuum cleaner.
ABC stocks a switch connector at its warehouse to supply offices. The annual demand for these connectors is 32,000 units. ABC estimates its annual holding cost for these to be $20 per unit. The cost to place and process an order from the supplier is $50. The company operates 320 days per year and the lead time to receive an order from the supplier is 2 working days. The company’s inventory policy states that they should place 64 orders throughout the year and each order will be for 500 units. The new supply chain manager who just joined ABC questions the optimality of this policy and understand how much ABC would save if they had implemented economic order quantity (EOQ).a) What is the total cost of the inventory policy (ordering 500 units)?b) What is the economic order quantity (EOQ) for this product? c) What is the total cost of following EOQ policy? How much ABC would save by switching to EOQ?d) What should be the reorder point?
Q. Radhuni, a traditional bangla restaurant, incurs the following costs:a. Cost of children’s toys given away free with kids’ mealsb. Cost of the posters indicating the special “two dishes for $2.50”c. Costs of frozen onion rings and Fishesd. Salaries of the food specialists who create new Biriyani for the restaurant chaine. Cost of “to-go” bags requested by customers who could not finish their meals in therestaurantRequired: Just Classify each of the cost items (a–e) as one of the business functions of the value chain