Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 11, Problem 2P
Hau Lee Furniture, Inc., described in Example 1 of this chapter, finds its current profit of $10,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $25,000 so he can obtain the bank’s approval for the loan.
a) What percentage improvement is needed in the supply chain strategy for profit to improve to $25,000? What is the cost of material with a $25,000 profit?
b) What percentage improvement is needed in the sales strategy for profit to improve to $25,000? What must sales be for profit to improve to $25,000?
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Students have asked these similar questions
Hau Lee Furniture, Inc., spends
50%
of its sales dollars in the supply chain and finds its current profit of
$28,000
inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to
$33,000
so he can obtain the bank's approval for the loan.
Current Situation
Sales
$140,000
Cost of material
$70,000
(50%)
Production costs
$28,000
(20%)
Fixed cost
$14,000
(10%)
Profit
$28,000
(20%)
Part 2
a) What percentage improvement is needed in the supply chain strategy for profit to improve to
$33,000?
What…
Is this statement true or false? Please explain in detail.
Savings in the supply chain exert more leverage as the firm`s net profit margin decreases
Consider the supply chain illustrated below:
Last year, the retailer’s weekly variance of demand was 200 units. The variance of orders was 500, 600, 750, and 1,350 units for the retailer, wholesaler, distributor, and manufacturer, respectively. (Note that the variance of orders equals the variance of demand for that firm’s supplier.)
a) Calculate the bullwhip measure for the retailer.
b) Calculate the bullwhip measure for the wholesaler.
c) Calculate the bullwhip measure for the distributor.
d) Calculate the bullwhip measure for the manufacturer.
e) Which firm appears to be contributing the most to the bullwhip effect in this supply chain?
Chapter 11 Solutions
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Ch. 11.S - Prob. 1DQCh. 11.S - Prob. 2DQCh. 11.S - Prob. 3DQCh. 11.S - Prob. 4DQCh. 11.S - Prob. 5DQCh. 11.S - Prob. 6DQCh. 11.S - Prob. 7DQCh. 11.S - Prob. 8DQCh. 11.S - Prob. 9DQCh. 11.S - Prob. 10DQ
Ch. 11.S - Prob. 1PCh. 11.S - Prob. 2PCh. 11.S - Prob. 3PCh. 11.S - Prob. 4PCh. 11.S - Prob. 5PCh. 11.S - Prob. 6PCh. 11.S - Prob. 7PCh. 11.S - Prob. 8PCh. 11.S - Prob. 9PCh. 11.S - Prob. 10PCh. 11.S - Prob. 11PCh. 11.S - Prob. 12PCh. 11.S - Your options for shipping 100,000 of machine parts...Ch. 11.S - If you have a third option for the data in Problem...Ch. 11.S - Prob. 16PCh. 11.S - Prob. 17PCh. 11.S - Prob. 18PCh. 11.S - Prob. 19PCh. 11.S - Prob. 20PCh. 11 - Prob. 1EDCh. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - Prob. 6DQCh. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - What is CPFR?Ch. 11 - Prob. 10DQCh. 11 - Prob. 11DQCh. 11 - Prob. 12DQCh. 11 - Prob. 13DQCh. 11 - Prob. 14DQCh. 11 - Prob. 15DQCh. 11 - Prob. 16DQCh. 11 - Prob. 17DQCh. 11 - Prob. 1PCh. 11 - Hau Lee Furniture, Inc., described in Example 1 of...Ch. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - Prob. 6PCh. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 1CSCh. 11 - Prob. 2CSCh. 11 - Prob. 3CSCh. 11 - Prob. 4CSCh. 11 - Prob. 1.1VCCh. 11 - Prob. 1.2VCCh. 11 - Prob. 1.3VCCh. 11 - Prob. 2.1VCCh. 11 - Prob. 2.2VCCh. 11 - Prob. 2.3VCCh. 11 - Prob. 2.4VC
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