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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?
- 8. Ms. Rabiya Mateo and Ms. Sandra Lemonon, two real-estate investment partners, are assessing the relative risks of a prime property in Taguig City, and a comparable property in a similarly vibrant area of Iloilo City. One partner discounts heavily the value of the Taguig property because of the potential earthquake damage. The Taguig City-averse partner is most likely influenced by which element of risk management analysis? a. Risk Prioritization b. Risk Severity c. Risk Psychology d. Risk ResponseLetz Products has two decisions to make, with the second decision dependent on the outcomeof the first. The company intends to build a new plant. Letz has the option of conducting itsown marketing research survey for which the results will either be positive or negative. Theinformation from this survey could help it decide whether to build a large plant, to build a smallplant, or not to build at all. Letz recognizes that although such a survey will not provide it withperfect information, it may be extremely helpful. Using the image explain to your client (Letz) what the above decision tree shows. You arerequired to show all working.What information does a decision maker need in order to perform an expected-value analysis ofa problem? What options are available to the decision maker if the probabilities of the states ofnature are unknown? Can you think of a way you might use sensitivity analysis in such a case?
- Consider the following payoff table for three product decisions (A, B, and C) and three future market conditions (payoffs = P millions) Assume that is now possible for the company to estimate a probability of 0.40 that market condition1 will exist, 0.40 for market condition 2 and a probability of 0.20 that market condition 3 will exist in the future. Determine the best decision using expected value. Determine the expected value of perfect information (EVPI)?Determine the best decision using expected opportunity loss.Exhibit 20-2Below is a payoff table involving three states of nature and two decision alternatives. Decision States of Nature Alternative s1 s2 s3 A 80 45 –20 B 40 50 15 P(s1) = .1, P(s2) = .6, and P(s3) = .3.Refer to Exhibit 20-2. The expected value of the best alternative equals _____. a. 12 b. 38.5 c. 29 d. 105Sigma Airway: In 2021, Sigma Airway was considering the possibility of adding a new economy class to the two existing classes - first class and tourist -in the hope that the total contribution to its profit from fares might be increased. Ms. Somsri, the marketing manager for Sigma had to decide within the next week whether or not to introduce such as a change. If introduced, the new class would have to be retained for at least 100 days. Somsri felt that the essential question to be answered in her analysis was whether such a deal would attract sufficient new customers to offset the loss of revenue from existing tourist customers switching to the lower-contribution economy class. Somsri, having had some experience with these problems in the past, made the following assessments: On an average day she felt that there was a 1 in 3 chance that 200 new customers would be attracted to the new class, a 1 in 3 chance at the figure would be around 100 new customers, and a 1 in 3 chance that it…
- The medical team at Birzeit Hospital are not sure whether to buy the COVID-19 vaccine from supplier A, B, or C. The analysis of previous experience dealing with the three suppliers reveals the following vaccine quality: Percent of ineffective vaccines Probability for Supplier A Probability for Supplier B Probability for Supplier C 2 0.60 0.50 0.70 5 0.30 0.30 0.00 7 0.10 0.20 0.30 The hospital buys 25000 vaccines each year which means that the probability to get 2% ineffective vaccines is 0.60 from supplier A, 0.50 from supplier B, and 0.70 from supplier C. Develop a decision tree to show your recommended alternative (supplier).The fire department has a number of failures with itsoxygen masks and is evaluating the possibility of outsourcingprevent ive maintenance to the manufacturer. Becau se of the riskassociated with a fai lure, the cost of each failure is estimated at$2,000. The current maintenance policy (with station employeesperforming ma in tena nce) has yielded the following history: This manufacturer will guarantee repairs on any and all fai lures aspart of a service contract. The cost of this service is $5,000 per year.a) What is the expected number of breakdowns per year with station employees performing maintenance?b) What is the cost of the current maintenance policy?c) What is the more economical policy?The CEO of a car manufacturing company is about to launch new car. However, there are opposite views regarding the launch. The marketing manager expects that the car will generate high revenue and profit. However, the lead designer reported that although the design met required industry and law standards and requirements, tests showed a low risk that the car could malfunction (), possibly injuring a user. By deciding to launch the car as designed, what criterion of decision making was ignored ( )? A Economic Feasibility. B Rationality. C) Ethicalness. D Legality. E Practicality