15 of 29 As manager of a retail outlet readying for an uncertain Christmas season, you're not sure how many extra staff to hire and you must pre-commit (decide before knowing busyness). What is the most you would be wiling to pay for a perfect forecast of season busyness? (Choose the closest maximum price). Season Quiet (50% Eke hood) Busy (50% fikelihood) Low staff levels High staff levels $15,000 $10.000 $22,000 $54.000 OA $2500 OB. $2100 OC. $2300 OD. $1900 lUnsure

15 of 29 As manager of a retail outlet readying for an uncertain Christmas season, you're not sure how many extra staff to hire and you must pre-commit (decide before knowing busyness). What is the most you would be wiling to pay for a perfect forecast of season busyness? (Choose the closest maximum price). Season Quiet (50% Eke hood) Busy (50% fikelihood) Low staff levels High staff levels $15,000 $10.000 $22,000 $54.000 OA $2500 OB. $2100 OC. $2300 OD. $1900 lUnsure

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 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...

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Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?
1. How does long term capacity strategy affect the stability of business organization, give an example of long-term capacity strategy. 2. In opening a restaurant, what might be the kind of forecast you think would be appropriate?
How do you lllustrate Kibbles and Bit’s forecasted revenue and expenses for the next 3 years?
Using the accompanying log–log graph, answer the following questions: a) What are the implications for management if it has forecast its cost on the optimum line? b) What could be causing the fluctuations above the optimum line? c) If management forecast the 10th unit on the optimum line, what was that forecast in hours? d) If management built the 10th unit as indicated by the actual line, how many hours did it take?
Climate Control, Inc., makes expedition-quality rain gearfor outdoor enthusiasts. Management prepared a forecast ofsales (in suits) for next year and now must prepare a produc-tion plan. The company has traditionally maintained a levelworkforce strategy. All nine workers are treated like familyand have been employed by the company for a number ofyears. Each employee can produce 2,000 suits per month.At present, finished goods inventory holds 24,000 suits. Thedemand forecast follows: Use the Sales and Operations Planning with SpreadsheetsSolver in OM Explorer or develop your own spreadsheetmodels to address the following questions. a. Management is willing to authorize overtime in pe-riods for which regular production and current lev-els of anticipation inventory do not satisfy demand.However, overtime must be strictly limited to no morethan 20 percent of regular-time capacity. Managementwants to avoid stockouts and backorders and is notwilling to accept a plan that calls for shortages.…
Using the accompanying log-log graph, answer the following questions: What are the implications for management if it has forecast its cost on the optimum line? What could be causing the fluctuations above the optimum line? If management forecast the tenth unit on the optimum line, what was that forecast in hours? If management built the tenth unit as indicated by the actual line, how many hours did it take?
What is CAPACITY REQUIREMENTS FORECASTING?
Briefly define or explain each of these terms: f. Time-phased plan
What are demand forecasting and capacity strategy? Give an example of demand forecasting for a business.
Suzy's Temporary Employee (STE) business, located in a big city, can do an online criminal background check in-house for $3.48 per search with a fixed cost of $30,000. A third-party online security firm offered to do a similar security search for $9.00 per person with an annual service contract with STE. If STE's forecast is 3,100 searches next year, should STE continue to do the search in-house or accept the third-party offer? Use the Excel template Break-Even to determine the best decision. Round your answer for the breakeven quantity to the nearest whole number and round your answer for the amount of saving/loss to the nearest dollar. Breakeven quantity: searches Since the demand forecast of 3,100 searches is than the breakeven quantity, STE outsource the work. STE $ by outsourcing.