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.
Q: Discuss the basic information about the company and its offerings. About the Company of: (Zesto…
A: Zest-O began as a packaged juice brand to become a leading beverage brand in Philippines. The…
Q: 1. What steps should the company launching the product take in order to mitigate product launch…
A: Cautious planning and market analysis should be done in advance so that every possible risk can be…
Q: Sourcing sustainability is described as the ability to meet the current needs of the supply chain…
A: Sourcing sustainability is described as the ability to meet the current needs of the supply chain…
Q: A steam boiler is purchased on the basis of guaranteed performance. However, initial tests indicates…
A: The operating cost = ₱400 more per year than guaranteed. The expected life = 25 years Money worth =…
Q: A firm engages in forward vertical integration when it incorporates more stages of the value chain…
A: Strategy forms the foundation for a business by defining it, providing a set of values along with a…
Q: After the purchasing department approves the purchase requisition, a _____ will be prepared to…
A: Seller is the person from whom the company purchases its raw materials and resources for…
Q: Q2. Draw a flow-chart of risk assessment of general security? Also explain its following…
A: What is RISK ASSESSMENT? A risk assessment process is about identifying, assessing the situation…
Q: A mission-critical system is a system that is crucial to the success of a company
A: Mission Critical system:- A mission-critical system is an important part of the infrastructure of a…
Q: To integrate the supplier into the system, which of the following is not required for the supplier…
A: Supplier integration can be described as the alliance of internal resources. and abilities of chosen…
Q: Which of the following statements is true regarding the leverage of supply chain savings?…
A: The leverage of a company : This can be defined as the usage of the borrowed funds or debt capital…
Q: Before the changes in packaging, shipping costs are $ per month. (Enter your response rounded to two…
A:
Q: Relative to customer service, explain why it is suggested that we “under- promise” and…
A: "Under- promise" and "over-deliver" is a strategy where you serve the customer more than you have…
Q: With an overall cost of goods totaling $64,000 and sales of $181,000, what is the food cost…
A: Food cost percentage is a proportionate measurement between total inventory cost and total sales.…
Q: The JIT solution: Requires carrying materials inventory in order to lower the cost of inventory…
A: A Just in time (JIT) solution refers to when businesses place orders for raw materials directly…
Q: A certain wine retailer sells what it calls QPR wines. QPR refers to quality price ratio. It simply…
A: The customers are most attracted to the prices of the products and it greatly influences their…
Q: WO (2) measures to be incorporated into a supply chain in ensuring the risk of Covid-19 is…
A: As Covid keeps on traveling all around the world, it is probably going to prompt creation and supply…
Q: List ways to avoid the following reasons for businesses failure; inability to develop and monitor…
A: The rate of business failures is considerable all over the world. However, there are various reasons…
Q: KALI, Inc., manufactures home appliances that are marketed under a variety of trade names. However,…
A: Given that: Sample size , n = 15 Acceptance Number, c = 1 p0 = 0.04 Using; f(x) =…
Q: Automobile repair costs continue to rise with the average cost now at $500 per repair. Assume that…
A: Mean (μ) = $500 Standard deviation (σ) = $88
Q: Globecom Ltd (Globecom) is a new large-scale online retailer which is experiencing rapid growth by…
A: From the above case study, we came to recognize below five risks to the Globecom's business. They…
Q: Duscuss the purchasing department's primary goals are of the following: To locate suppliers that can…
A: Purchasing departments are in the middle of successful supply chain management. Mainly, they help…
Q: You are working as a Strategic Management Accountant for a company that manufactures Electrical…
A: Supply chain disruption happens due to certain externalities impacting your supply chain like to…
Q: hired to complete a profitability analysis and you decided to start by completing a cost analysis…
A: Given: Number of attendees 0 50 100 175 200 Variable cost per attendee $135 $135 $135 $135 $135…
Q: Which of these systems is meant for the top management? 1.TPS 2. DSS 3. MIS 4.ESS 2.In the…
A: The answer to the first question is ESS. The answer to the second question is True.
Q: Compare and contrast the importance of meeting customer demand with the alternatives
A: Customers are the people taking part in economic exchange with the firm. They purchase the product…
Q: Cost-Volume-Profit Analysis (CVP analysis), also commonly referred to as Break-Even Analysis, is a…
A: Cost-Volume-Profit Analysis (CVP analysis), also commonly referred to as Break-Even Analysis, is a…
Q: ABC Company placed an order on December 1. It normally receives the order after 9 days. If the…
A: The reorder point is the level reached at which the order is placed to replenish the inventory…
Q: Discuss how Amazon can use the information lever to predict demand. What is Amazon’s scope of…
A: Amazon is the world's biggest web-based retailer and is, to be sure, a trailblazer in the web-based…
Q: What is the difference of price and cost? From (a) point of view of a customer; and (b) point of…
A: Cost On their financial accounts, some corporations will report the complete cost of manufacturing a…
Q: Which of the following situations illustrate the problem of the introduction of new goods in the…
A: Introduction of new products is one of the major problem which is faced while formulation of the…
Q: n writing an offer letter to a digital company expressing your interest in purchasing some advanced…
A: An offer letter for material requisition is an interest letter to transact the marketing function by…
Q: ThinkMed is a producer of medical devices that accepts certain levels of customization in its…
A: Suppler is a person or organization that provides the materials for the functioning of our…
Q: Help! Please show complete and explicit solution with step by step explanation thankyou! Note: the…
A: Heat loss is defined as the decrease of heat existing in space from heat transfer through walls,…
Q: Do you have an old computer or two that you no longer use? How about an old TV that needs replacing?…
A: Management of the financial resources of an organization is an important part of the organization.…
Q: What will be procurement strategy for a university plans to launch its new campus in the city. You…
A: According to the inquiry, an acquirement system needed to dispatch another grounds alludes to a…
Q: You really want to buy the product and yet you do not have enough money to buy that item. Luckily,…
A: Above question is answered below:
Q: Morton Corporation manufactures computers and wants to select a supplier to purchase chips for its…
A: a The decision tree is shown below
Q: Need answer of each question minimum 100 words to What is the return of the creditors? How can it…
A: Buys return book is an auxiliary book which records products got back to the provider (for example…
Q: If a small, U.S. business with sales of $300 million wanted to expand into global markets, develop a…
A: The organisation must determine and look into, various significant criteria and decisions before…
Q: M K gift store buys items for ₹65. At an original retail price of ₹89, it expects to sell 1,000…
A: Gross profit is the remaining revenue after the cost is fulfilled. It is calculated as selling price…
Q: Discuss this statement and recommend a systematic approach that project teams should take to manage…
A: Minimum cost in the organization is a goal that managers seek to attain. It is important as it helps…
Q: Could you please answer this statement from the perspective of 'it depends': Savings in the supply…
A: Savings:- Savings are money you have left over after paying all your bills and expenses, such as…
Q: When there is no production, total cost is equal to total fixed cost. Select one: a. True b. False
A: What sort of firm causes costs however delivers no yield? This can just allude to a firm that has…
Q: Which of the following scenarios is likely to result in an unused (potentially sustainable)…
A: In general terms, sustainable competitive advantage refers to a scenario whereby an organization is…
Q: In-house supply the origins of any quality problems usually easier to trace in-house and improvement…
A: In-house supply the origins of any quality problems usually easier to trace in-house and improvement…
Q: SCOR is a local nonprofit organization that provides advice and direction to new and/or small…
A: There is NGO naming SCOR that works to provide advice and give assistance to small enterprises.
Q: Fear of losing market share results in a higher level of risk aversion. How does this affect our…
A: Definition : The risk aversion is basically who chooses lower returns and the risks which are…
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!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- In each of the following, name the term defined. Answersare listed at the bottom. A supply chain that must deal with high levels of both supply and demand uncertainty. In order to cope with high levels of supply uncertainty, a firm would use this strategy to reduce risk. Used to describe functions related to the flow of material in a supply chain. When a firm works with suppliers to look for opportunities to save money and benefit the environment. Refers to an estimate of the cost of an item that includes all costs related to the procurement and use of an item, including the costs of disposing of after its useful life.You are the management accountant for a small company that makes and distributes picante sauce. You’ve been asked to prepare a presentation that will illustrate the company’s value chain. a. What activities or types of companies would you include in the upstream (supplier) part of the value chain? b. What activities would you include in the internal value chain? c. What activities or types of companies would you include in the downstream (distribution and retailing) part of the value chain? Need Proper explanationIn addition to performing value analysis on the services its properties offer, Starwood evaluates the performance of its suppliers against contract metrics. Using the bed linens and terrycloth supplier as an example, describe some of the metrics Starwood should use.
- In purchasing an item, there are two conceptual dimensions, generally speaking, either product or service. Compare and contrast the two concepts in terms of similarity and difference. What kind of item can be an example, which includes both dimensions of product and service?Five years ago it cost Bernie’s Bikes Inc. about $52 dollars to build a single bike. Today, it only costs the company about $31 because they have automated the process and are able to purchase component parts in larger quantities.What allowed the company to reduce the price to build a bike? A. trade deficit B. product differentiation C. trade surplus D. economies of scaleIs it possible to keep production prices below those of the competition?Explanation
- 1.) Developing a reliable and trustworthy supplier base is critical to success. True False 2.)The tragedy surrounding the Rana Plaza Factory collapse would have most likely been avoided with sound corporate social responsibility practices in place. True False 3.)Supply strategies are crucial to a business’s success. True False 4.)Location of a factory would not be considered a key factor in the decision-making process surrounding supplier choice. True False 5.)Fast fashion does not negatively impact the environment. True False 6.)Most apparel companies own their own factories and control their own fabric supply. True False 7.)Retailers have embraced the omnichannel model to provide buying options for their customers. True False 8.)Strategic line planning is considered necessary in developing the end product. True False 9.)Near-shoring’s main benefit is reducing lead time. cutting down on travel costs. using less people.…HOW MANY SUPPLIERS ARE BEST FOR MANAGING RISK? Xiaotian Geng, president of Shanghai Manufacturing Corp., wants to create a portfolio of suppliersfor the motors used in her company’s products that will represent a reasonable balance between costsand risks. While she knows that the single-supplier approach has many potential benefits with respectto quality management and just-in-time production, she also worries about the risk of fires, natural disasters, or other catastrophes at supplier plants disrupting her firm’s performance. Based on histori-cal data and climate and geological forecasts, Xiaotian estimates the probability of a “super-event” that would negatively impact all suppliers simultaneously to be 0.5% (i.e., probability 5 0.005) during thesupply cycle. She further estimates the “unique-event” risk for any of the potential suppliers to be 4%(probability 5 .04). Assuming that the marginal cost of managing an additional supplier is $10,000, andthe financial loss incurred if a…(Please do not give solution in image format thanku) Read the statement below and answer the questions that follow. Supply chain integration is the process of incorporating all parties involved in a product's fulfilment into a singular system. This calls for a lot of planning and alignment to make sure that everyone is constantly working toward the same objective. You managing the supply chain at Edgars in South Africa. You are requested to discuss the following questions and explain how your position would help the retail store to reduce costs and become competitive in the market. QUESTION 2 Excessive inventory investment, poor customer service, lost revenues, misguided capacity plans, ineffective transportation, and missed production schedules can all result from inaccurate information from one end of a supply chain to the other.…
- Consider the below excerpt of a spend analysis conducted by Toyota South Africa regarding their raw material category. Make two recommendations for improvement to their raw materials category.Supplier Category: Raw materials Total spend per supplierAuto Parts SA ZAR 40,000,000Safe Brake SA ZAR 20,000,000LUK Repco SA ZAR 10,000,000HOLTS Rad SA ZAR 5,000,000BEHR Ech SA ZAR 5,000,000After the purchasing department approves the purchase requisition, a _____ will be prepared to acquire the goods or services from the supplier. Group of answer choices Purchase order Supplier invoice Voucher CheckWhich of the following statements about supply chain coordination contracts is TRUE? A A risk-averse business owner should enter a revenue-sharing rather than a buy-back contract. B The supplier faces increased overhead costs in a revenue-sharing contract. C Products with a short peak demand period should enter a buy-back contract rather than a revenue-sharing contract. D Buy-back contracts usually work more efficiently than revenue-sharing contracts.