Q5-) A regional infrastructure building and maintenance contractor must decide to buy a new compact horizontal directional drilling (HDD) machine now, or wait and buy it 2 years from now when a large pipeline contract will require the new equipment. The HDD machine will include an innovative pipe loader design and a maneuverable undercarriage system. The cost of the system is $68,000 if purchased now or an estimated $81,000 if purchased 2 years from now. At /= 10% per year and f = 5% per year, determine if the contractor should buy now or later (a) without any adjustment for inflation, and (b) with inflation considered.

Q5-) A regional infrastructure building and maintenance contractor must decide to buy a new compact horizontal directional drilling (HDD) machine now, or wait and buy it 2 years from now when a large pipeline contract will require the new equipment. The HDD machine will include an innovative pipe loader design and a maneuverable undercarriage system. The cost of the system is $68,000 if purchased now or an estimated $81,000 if purchased 2 years from now. At /= 10% per year and f = 5% per year, determine if the contractor should buy now or later (a) without any adjustment for inflation, and (b) with inflation considered.

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. 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?
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Case Study: Read the following Case study-From a small kiosk in a shopping mall established in 1997, Dr Cafe has become one of the leading coffee-shop chain in the Middle East with over 600 branches in the world. Dr Cafe success has built upon its popularity among young and trendy people and its unique approach of selecting the "best beans" in the world. Between 2008 and 2010, Dr Cafe has continued its aggressive expansion to Malaysia and Singapore with more branches in sight. In fact, in its plans for 2030, Dr Cafe has set its vision to expand globally and increase its network to over 30,000 branches!The marketing department has been assigned by Dr Cafe's CEO to investigate and propose possible options for expansion into a completely new area; Europe.Being a student of marketing management, how you can help to the marketing manager in this regard with the following questions. Discussion Question #1: What variables need to be considered while developing a list of potential…
Case Study EC Accommodation Services (ECAS) is a hospitality entity situated in the less scenic part of a resort towncalled Swakopmund. The owners, Mr and Mrs Johannes strongly believe that there is a need for lowcost family accommodation in the resort town of Swakopmund. ECAS comprises of huge family-style furnished rooms but without a television set fitted-in. Although there is plenty of room for future expansion, the grounds outside are fairly bare (unpaved) without any notable landscaping done except for coastal sand that covers the whole ground area. Mrs Johannes stays at the property. She serves breakfast to the guests in their rooms and provides teamaking facilities such as an electric jug and related cutlery. The resort town of Swakopmund has of late seen some major investments, so much that there are a lot of good restaurants and take-aways in the area such as Spur, Wimpy and KFC. Besides ECAS being situated not far away from the beach, shops and other areas of interest, the…
Case Study EC Accommodation Services (ECAS) is a hospitality entity situated in the less scenic part of a resort towncalled Swakopmund. The owners, Mr and Mrs Johannes strongly believe that there is a need for lowcost family accommodation in the resort town of Swakopmund. ECAS comprises of huge family-style furnished rooms but without a television set fitted-in. Although there is plenty of room for future expansion, the grounds outside are fairly bare (unpaved) without any notable landscaping done except for coastal sand that covers the whole ground area. Mrs Johannes stays at the property. She serves breakfast to the guests in their rooms and provides teamaking facilities such as an electric jug and related cutlery. The resort town of Swakopmund has of late seen some major investments, so much that there are a lot of good restaurants and take-aways in the area such as Spur, Wimpy and KFC. Besides ECAS being situated not far away from the beach, shops and other areas of interest, the…
Q.1 Explain below sins of service/poor service that Mandate are not aware of that is possibly happening in the business unit. - Apathy - Brushing customer off -coolness toward customers -Treating customer condescendingly -Roots syndrom - Following the rules - The customer turnaround Q.2 After explaining above seven sins of service/poor servic, Discuss the reasons why CRM failure exists (seven deadly sins for an unsatisfactory CRM outcome) for the top management to be aware and make sure they can turn the business around. Q.1 Explain below sins of service/poor service that Mandate are not aware of that is possibly happening in the business unit. - Apathy - Brushing customer off -coolness toward customers -Treating customer condescendingly -Roots syndrom - Following the rules - The customer turnaround Q.2 After explaining above seven sins of service/poor servic, Discuss the reasons why CRM failure exists (seven deadly sins for an unsatisfactory CRM outcome) for the top management…
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