Please answer both parts. Do save theAn organization purchases the same component from three different suppliers viz V1, V2 and V3. This is acritical component in the manufacturing operations of the company. The organization has collated last year'sperformance of the suppliers as tabulated below.SupplierV1V2V3Quantity Supplied [nos.]11709761040Quantity Accepted [nos.]9669101040Unit price [Rs.]5253.655Delivery promised [days]151515Actual deliveries made in [weeks]181721WeightageQuality-80%Price - 10%Delivery-10%a. Evaluate the ratings of the three suppliers.b. Based on the vendor rating, suggest suitable follow-up action.

Answered: Do sa An organization purchases the…

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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Answer the given question with a proper explanation and step-by-step solution. Monczka-Trent Shipping is the logistics vendor for Handfield Manufacturing Co. in Ohio. Handfield has daily shipments of a power-steering pump from its Ohio plant to an auto assembly line in Alabama. The value of the standard shipment is $255.930. Monczka-Trent has two options: (1) its standard 2-dav shipment or (2) a subcontractor who will team drive overnight with an effective deliverv of ' dav. The extra driver costs $190. Handfied's holding cost is 35% annuallv for this kind of inventorv. Part A: Alternative 2 is more economical, with a daily cost of $_____ . (Enter your response as a whole number.)
As mentioned in the chapter, some analysts predict barcodes maybe replaced by a wireless technology called radio-frequency identification (RFID). RFID is a system of installing tags containing tinycomputer chips on, say, supermarket items. These chips automatically radio the location of the item to a computer network whereinventory data is stored, letting store managers know not onlywhere the item is at all times but also when and where it was madeand its color and size. Proponents believe RFID cuts costs and simplifies inventory tracking and reordering. It may also allow marketersto respond quickly to shifts in demand, avoid under- and overstocking, and reduce spoilage by automatically removing outdated perishables from the shelves. Privacy advocates, however, think thechips provide too much product-preference information that mightbe identified with individual consumers. In the meantime, Walmartrequires its major suppliers to use the new technology on productsstocked by the giant…
Please briefly explain why the correct option is right and why the other options are incorrect. 1) Which of the following is the PRIMARY reason for institutionalizing continuous improvement in the supply chain? a)To help suppliers enhance capability in their processes, allowing both the buyer and supplier to reap the benefits b)To determine where the supplier is making errors without raising costs in the supply chain c)To enable suppliers to voice concerns about how the organization is managing contracts with the supplier d)To make the buying organization more receptive to supplier concerns, including any negative feedback
. All the following behaviours are possible obstacles to supply chain coordination, except _____a) Each stage of the supply chain views its actions locally and is unable to see the impact ofits actions on other stagesb) Different stages of the supply chain react to the current local situation rather than trying toidentify the root causesc) Based on local analysis, different stages of the supply chain blame each other for thefluctuations, with successive stages in the supply chain becoming enemies rather thanpartnersd) None of the above
Par Inc., is a small manufacturer of golf equipment and supplies. Par's distributor believes a market exists for both a medium-priced golf bag, referred to as a standard model, and a high-priced golf bag, referred to as a deluxe model. The distributor is so confident of the market that, if Par can make the bags at a competitive price, the distributor will purchase all the bags that Par can manufacture over the next three months. A careful analysis of the manufacturing requirements resulted in the following table, which shows the production time requirements for the four required manufacturing operations and the accounting department's estimate of the profit contribution per bag: PRODUCTION TIME (HOURS) PRODUCT, CUT & DYE, SEWING, FINISHING, INSPECTION & PACKAGING, PROFIT/BAGSTANDARD 7/10, 1/2, 1, 1/10, DELUXE 1, 5/6, 2/3, ¼ The director of manufacturing estimates that 630 hours of cutting and dyeing time, 300 hours of sewing time, 708 hours of finishing time, and 270 hours of…
Which of the following combinations would result inneeding to utilize the largest number of suppliers?a) a high value of S and high value of Ub) a high value of S and low value of Uc) a low value of S and high value of Ud) a low value of S and low value of U
2. Karen Weber, the purchasing agent for Smith Manufacturing, views the purchase of widgets as a routine buying decision. What factors might lead her to alter this position? More important, what factors determine whether Karen considers a particular supplier, such as Albany Widget?
Morton Corporation manufactures computers and wants to select a supplier to purchase chips for its computers. There are two major suppliers of chips – AirBoxChips and SoftChips. AirBoxChips is a relatively big company and has a good reputation in terms of reliability and delivery. As it is a big company, it provides supply guarantee and sells its products with a higher price. Specifically, it charges $1.20 for each chip that it sells. SoftChips is small company having limited capacity. Even though it charges $0.90 for each chip that it sells, it does not provide supply guarantee. If it is a low-demand year, Softchips is able to satisfy Morton’s demand fully. However, if it is a high-demand year, it allocates only 90,000 chips for the purchase of Morton. If Morton cannot purhcase chips from its contracted supplier, it buys chips on the spot market. Spot market prices for chips are $2.00 per unit in a low-demand year and $4.00 per unit in a high-demand year. Demand in chips has a 75%…
k of PDF : https://docdro.id/psUSO2n https://docdro.id/KV8USNQ question : 1/ According to Weele, the items that we measure determines the role of the purchasing function. List these roles, and show the mapping. 2/ According to Simpson and et.al, why should we measure the performance of our suppliers? 3/ According to Simpson and et. al, what are the characteristics of our suppliers should we measure? List these down in terms of evaluative criteria and its details.
Hi, I am looking for the formula for calculating maximum acceptable purchase price in a make or buy situation. The amount of units being produced is unknown. What is known are the variable cost per unit and fixed cost per unit of existing manufacturer, as well as the price to obtain the product from another supplier. Thanks!
A manufacturer is evaluating whether to outsource or perform in-house product specification testing. The fixed cost of the equipment located in the facility is $500,000, and the weighted average variable cost per test if performed in-house is $20.85. A third-party located three miles from the manufacturer will perform the same tests with more advanced and faster equipment. The third-party distributes the results electronically to the manufacturer at a price of $21.00. If the annual volume last year was 200,000 tests, should the manufacturer do all specification tests in-house or outsource? Use the Excel template Break-Even to determine the best decision.
Refer to the slides on buy-back contracts to answer this question. A publisher sells books to Borders at $12 each. The marginal production cost for the publisher is $1 per book. Borders prices the book to its customers at $24 and expects demand over the next two months to be normally distributed, with a mean of $20,000 and a standard deviation of $5000. Borders places a single order with the publisher for delivery at the beginning of the two-month period. Currently, Borders discounts any unsold books at the end of the two months down to $3, and any books that did not sell at full price sell at this price. How many books should Borders order? What is the expected profit? How many books does it expect to sell at a discount? What is the profit that the publisher makes given Borders’ actions? A plan under discussion is for the publisher to refund Borders $5 per book that does not sell during the two-month period. As before, Borders will discount them to $3 and sell any that remain.…

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