Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for the many rides at the parks. Eight Flags needs 40,000 gallons (D) of oil annually; the parks operate 50 weeks a year. Management is unsatisfied with the current supplier of oil and has obtained two bids from other suppliers. The data are contained in the following table. Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time (L) Annual Administrative (p) $3.90 15,000 Supplier Sharps Winkler 5,000 $5,600 $5,400 10,000 $4,200 $3,700 Cost/Unit (H) $0.78 $0.76 (wks) Cost $3,700 $3,300 3 $4,500 $5,000 $3.80 Which supplier and which shipping quantity will provide the lowest costs for Eight Flags? Using v and a shipping quantity of is the lowest cost altenative, with annual total costs to Eight Flags of $ (Enter your response as an integer.)

Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for the many rides at the parks. Eight Flags needs 40,000 gallons (D) of oil annually; the parks operate 50 weeks a year. Management is unsatisfied with the current supplier of oil and has obtained two bids from other suppliers. The data are contained in the following table. Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time (L) Annual Administrative (p) $3.90 15,000 Supplier Sharps Winkler 5,000 $5,600 $5,400 10,000 $4,200 $3,700 Cost/Unit (H) $0.78 $0.76 (wks) Cost $3,700 $3,300 3 $4,500 $5,000 $3.80 Which supplier and which shipping quantity will provide the lowest costs for Eight Flags? Using v and a shipping quantity of is the lowest cost altenative, with annual total costs to Eight Flags of $ (Enter your response as an integer.)

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...

See similar textbooks

Similar questions

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?
Wanda Lux must select a supplier for a plastic bottle and proprietary dispenser for its new hair shampoo. Three suppliers have placed bids; at Wanda’s request, all bids are for a shipping quantity of 20,000 bottles with annual requirements of 40,000 units. Wanda’s factory operates 250 days a year. The first table (below) shows each supplier’s price, estimated annual freight costs, and current lead times; management has added estimates for holding costs and administrative oversight costs for each supplier. Beyond costs, however, Wanda has three other criteria considered important in the selection of a supplier. The second table (see below) shows all the criteria, their weights, and the scores for all of them except total costs, where a score of 1 indicates “poor” and 10 indicates “superior.” Because all three suppliers have done business with Wanda Lux before, management will assign a score of “10” to the supplier with the lowest total annual cost, a score of “8.5” for the next lowest…
Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for the many rides at the parks. Eight Flags needs 30,000 gallons of oil annually; the parks operate 50 weeks a year. Management is unsatisfied with the current supplier of oil and has obtained two bids from other suppliers. The data are contained in Table. Which supplier and which shipping quantity will provide the lowest costs for Eight Flags?
A. which of the following shipping modes should be selected for shipping cargo from South Korea to the US? ocean Freight Air freight It depends on the product type and Transit time requirement pipeline B.which of the below Transportation modes is most appropriate to transport liquids and natural gases? track ocean Freight pipeline Railway Freight air freight C. what are the criteria to measure whether a supplier is qualified? company code of conduct Financial stability production capacity and quality all of the above
1.Upstream supply chain members are A. retailers B. manufacturers C. end-use customers D. suppliers 2.The integrated group of business processes that form a supply chain are A. marketing, manufacturing and finance B. procurement, production and distribution C. manufacturing and service D. demand, value, and quality 3.The bullwhip effect occurs when A. slight to moderate demand variability becomes magnified as demand information is transmitted back upstream. B. slight to moderate demand variability becomes magnified as supply information is transmitted back upstream. C. slight to moderate demand variability becomes magnified as demand information is transmitted back downstream. D. slight to moderate demand variability becomes magnified as supply information is transmitted back downstream. 4.The key element in achieving supply chain integration is A. quality management B. ISO certification C. information technology D. EDI 5.A disadvantage of RFID technology that has hindered its…
Northcutt manufactures high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1400 sets a month. Supplier A is a domestic firm, and Suppliers B and C are located overseas. Cost information for the suppliers is as follows: Supplier A- Price of $150 per set, plus packing cost of $3.00 per set. Total inland freight costs for all 1400 units would be $550 per month. Supplier B- Price of $74.00 per set, plus packing cost of $2.00 per set. International transportation costs would total $4000 per month, while total inland freight costs would be $850 per month. Supplier C- Price of $97 per set, plus packing cost of $4 per set. International transportation costs would total $4800 per month, while total inland freight costs would be $1200 per month. The total landed cost per month for Supplier B is __$
1.Indicate whether the supply or Demand curve would shift to the right, shift to the left or movement along the demand/supply curve under each of the following instances An announcement by local supermarkets on radios and television channels that more companies and individuals with pick up cars have come on board to offer delivery services of groceries to customers during the rock down period. What would happen to the supply of delivery transport service? The Namibian government decides to stop subsidising the City of Windhoek, public transport division. what would happen to the supply of public transport? The government of Namibia decides to increase the income of all the civil servant by 30% as many demanded the need to buy their own vehicle. what would happen to the demand curve for vehicles?
Three important points of ASHLEY FURNITURE's planning are as follows: -Use of a suite of software to plan its supply chain operations. -Has a transportation optimization system to decide on the most suitable routes of transportation for delivering its products. -Provide inventories on a weekly basis Explain in each point why they are important.
You have been asked to assist in determining freight cost for the following shipment from TuJim Device Mfg in Shanghai, China You have contacted a freight forwarder and they have given you the following main freight rates: Air: $19.25/kg Ocean- $150.00w/m The shipment consists of 5 pallets each 625kg ,each 101.6cmx121.92cmx91.44cm Show all calculations used to determine freight costs
Friedland Timbers asa Source: Waters, C. D. J. (2019). Logistics: an introduction to supply chain management. Johann Klassen is the Managing Director of Friedland Timbers asa. which makes specialised wood products for the construction industry. He has recently been worried by late deliveries to some important customers. The industry is very competitive, and Johann knows that customers will go to other suppliers if he cannot guarantee deliveries. The marketing manager is particularly upset because he has worked with these customers for a long time, and promised deliveries that were not made. Johann asked the production manager for an explanation. She told him that ‘Our own suppliers were late in delivering certain types of wood. This shortage of a key raw material disrupted our production plans. We cannot be blamed for this. If anyone in the company is to blame, it is the warehouse manager who does not keep enough stocks of raw materials to cover for late deliveries.’ Johann then went…
The leading private medical clinic organization in Ghana is UPSAIT400 Group. It uses information technology to run hundreds of specialized institutes in addition to 15 hospitals. The need for more servers and storage technology is increasing by 25% annually. Every application was being set up on a separate server by UPSAIT400, and a variety of UNIX and Windows operating systems were being used on the servers and other computers. Many various suppliers' technologies are required to be managed by UPSAIT400, including those from Hewlett-Packard (HP), Sun Microsystems, Microsoft, and IBM. As an astute system administrator, what choices need to be taken into account while creating a solution to this issue?
Urban Company (formerly known as Urban Clap) is an Indian gig marketplace that offers home installation, maintenance and repair services, and home beauty and wellness services. In May 2020, Urban Company reported an operating revenue of INR 216 crore and its valuation was at INR 918 crore. In FY20, the home maintenance and repair services contributed 45% of total revenue and the beauty and wellness services contributed 55% of total revenue. In March 2020, the company wasservicing 22 locations within and outside India, had a network of 25,000professionals, and were performing 800,000 service tasks every month. Enumerate the utilisation of Distribution Management of Urban Company in effectively managing their services of maintenance & repair and home beauty & wellness