EBK BUSINESS ANALYTICS
3rd Edition
ISBN: 9780135231906
Author: Evans
Publisher: VST
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 5PE
Suppose that a manufacturer can produce a part for
- If the anticipated production volume is
- What is the best decision?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Unioil produces vegetable based cooking oil and butter spreads. Unioil uses large quantities of crude palm oil (CPO)in its production process as a main raw material. It is April 2021 now and Unioil estimates a need of 25,000 metric tons (MTs)of CPO in September 2021. Current spot price of CPO is RM2200 per MT. You as the procurement manager of Unioil, have the following alternatives to hedge the possible increase in the CPO price by September 2021:
a) The analysist predicts that the CPO will be trading at RM3400 per MT in September 2021.
b) Forward contracts on CPO for September 2021 delivery is available at RM3600 per MT.
C) September 2021 Futures contract on CPO (FCPO) is available and currently trading at RM2280 per MT. (FCPO has a contract specification of 25 metric tons per contract). What would be your net purchase price in September 2021 if the CPO closing price in September 2021 is RM3500 per MT? Justify whether this is a perfect hedge?
d) European Options on September…
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 $1200 per month.
The total landed cost per month for Supplier B is __$
Draw two diagrams, one depicting the supply chain for those products sourced in China and the other depicting the bags produced in San Francisco. Show all the major steps, including raw material, manufacturing, finished goods, distribution inventory, and transportation. Other than manufacturing cost, what other costs should Timbuk2 consider when making the sourcing decision?
Chapter 1 Solutions
EBK BUSINESS ANALYTICS
Ch. 1 - Discuss how you might use business analytics in...Ch. 1 - How might analytics be used in the following...Ch. 1 - A supermarket has been experiencing long lines...Ch. 1 - For each of the following scenarios, state whether...Ch. 1 - Suppose that a manufacturer can produce a part for...Ch. 1 - A bank developed a model for predicting the...Ch. 1 - Four key marketing decision options are price P,...Ch. 1 - Total marketing effort is a term used to describe...Ch. 1 - A manufacturer of headphones is preparing to set...Ch. 1 - In this chapter, we noted the importance of...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.Similar questions
- How do I do this question in order for me to get the EMC using 1, 2 and 3 suppliers?arrow_forwardAlison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Sadly, space does not permit an exhaustive list but once the test is over, check out their website. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars. Table 1 Unit costs Supplier Price/Unit Carrying Cost A 123 22 B 125 19 C 126 18 D 100 40 Annual Freight Costs Supplier 15,000 units 25,000 units 50,000 units A 380,000 260,000 237,000 B 615,000 547,000 470,000 C 285,000 240,000 200,000 D 380,000 260,000 237,000 Other Costs Supplier Lead Time Annual Admin Costs A 30 250,000 B 15 275,000 C 7 225,000 D 90…arrow_forwardHow is the source at Ashley furniture? Source:It includes the selection of suppliers that will deliver the goods and services to create the company's product.arrow_forward
- A. Calculate the total cost for each supplier. B. Which supplier would you select? C. If you could move the lot size up to ship in truckload quantities, calculate the total cost for each supplier.arrow_forwardDesign a complete supply chain network for a FMCG company based in Pakistan. However, suppliers are both local and international but the distribution is confined in Pakistan only. This is a push-based industry and business model is horizontal. You are required to do the following activities and don’t write anything in detail. Use bullet points to answer. The value chain diagram Identify the types of inventory at each stage of value chain Modes and Legal forms of transportation at each stage Warehouses at each stage, its type and strategies for warehouse location You are supposed to present a summary of your supply chain design in a matrix form.arrow_forwardDefine the term redeployment? What significance does redeployment have?arrow_forward
- Following are some of the information on demand and costs of a mobile phone manufacturer: Monthly Sales for previous year were 10,000 Mobile Phones. Overall Market has grown at 15% from the previous year. The company uses a third-party storage solution for keeping its inventory. The charges are Rs. 100/unit. For procuring the raw material company relies on a contractor which provides them a one stop solution and charges Rs. 3000 per order. The actual cost of the raw material is approximately 7000/unit. Using the above given information answer the following questions? What is the Economic Order Quantity for the company? If a working year is 300 days find out how many orders the company will place for the current year and what would the gap between two orders? What will be the total cost of inventory policy for the company? If the delivery lead time for receiving the order is 20 days what should be the reorder point for the company?arrow_forwardTommy's Family Furniture is looking for a new supplier for its armchairs. Tommy is primarily interested in only two criterion: price and name brand value. He considers the value of the name brand to be three times more important than price. Tommy has narrowed his choices to two suppliers. On a 10-point scale, he has assigned Amy's Armchairs a score of 8 on price and 5 on name brand value. He has assigned Annie's Armchairs a score of 3 on price and 6 on name brand value. Apply the factor weighting technique to help Tommy choose a new armchair supplier.arrow_forwardProvide hypothetical situation that would lead to outsourcing risks and provide a solution to such a situation.arrow_forward
- When Trek is looking for a new supplier or evaluating an existing one,what parameters does it use?arrow_forwardDescribe outsourcing methods, taking into account the complexities of the supply chain design. Furthermore, what is the appropriateness of outsourcing with regard to decision making and vertical integration, as these principles influence the management of the whole supply chain?arrow_forwardA sourcing strategy is essentially a business case for an organisation to determine an optimal approach to procure resources. AusMed which manufactures medical ventilators, wants to procure a heating tube which is a critical component of humidification equipment. In comparison to the value of the ventilator, the heating tube cost less. Moreover, there are very few suppliers in the world that can supply the heating tubes. Outline the steps involved in the sourcing the heating tube? Discuss what sourcing strategy that AusMed needs to adopt while procuring heating tube?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Contemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage Learning
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning
Use of ALGEBRA in REAL LIFE; Author: Fast and Easy Maths !;https://www.youtube.com/watch?v=9_PbWFpvkDc;License: Standard YouTube License, CC-BY
Compound Interest Formula Explained, Investment, Monthly & Continuously, Word Problems, Algebra; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=P182Abv3fOk;License: Standard YouTube License, CC-BY
Applications of Algebra (Digit, Age, Work, Clock, Mixture and Rate Problems); Author: EngineerProf PH;https://www.youtube.com/watch?v=Y8aJ_wYCS2g;License: Standard YouTube License, CC-BY