TABLE 7.8 DATA FOR THE EQUIPMENT INSTALLATION PROJECT Activity Immediate Predecessor(s) Normal Time (weeks) Crash Time (weeks) Normal Cost ($) Crash Cost ($) A 1 7,000 10,000 B 3,000 3,000 A 3 1 12,000 40,000 D В 3 2 12,000 28,000 E 1 8,000 8,000 F D, E 3 5,000 15,000 G E 3 9,000 18,000

TABLE 7.8 DATA FOR THE EQUIPMENT INSTALLATION PROJECT Activity Immediate Predecessor(s) Normal Time (weeks) Crash Time (weeks) Normal Cost ($) Crash Cost ($) A 1 7,000 10,000 B 3,000 3,000 A 3 1 12,000 40,000 D В 3 2 12,000 28,000 E 1 8,000 8,000 F D, E 3 5,000 15,000 G E 3 9,000 18,000

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Description: Table 7.8 contains data for the installation of new equipment in a manufacturing process at Excello Corporation. Your company is responsible for the installation project. Indirect costs are $15,000 per week, and a penalty cost of $9,000 per week will

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 12P

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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.
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