Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 14, Problem 1P
Summary Introduction
Interpretation: The shipping quantity and the supplier are to be determined that can provide the lowest total cost for the company.
Concept Introduction: The Company manufactures cell phones, exclusive for its network. In order for its new make, the company is to select a supplier of the circuit board. While the annual requirement of these components is 50,000 units, the manufacturing plant operates 250 days per year. There are three suppliers available with different options.
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Alison'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
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C 285,000 240,000 200,000
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Other Costs
Supplier Lead Time Annual Admin Costs
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D 90…
Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools.
Meanwhile, Weekend Projects is a national chain of retail outlets and wants to find a supplier for a
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Weekend's warehouses operate 50 weeks a year. Management collected data on the two suppliers,
which are contained in the table below:
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40,000 Price/unit(p)
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$1.8
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Bradley $30,000 $20,000
Alexander $25,000 $22,000
$6
$5
$20,000
$30,000
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What is the total annual cost for Weekend Projects if the company chooses Alexander as the
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$608,600
O $609,600
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Hi,
We're looking to replace some of our associate learning and development (L&D) processes towards utilising Al (Artificial Intelligence). I've provided some data on three Al suppliers and the costs of our current L&D processes.
Please could you let me know which supplier would give us the greatest savings after five years, if we were to replace our current L&D process with one of these Al systems?
Al suppliers:
Upfront cost:
Annual license:
Discount:
Costs of current process:
Resource
Thanks,
Ricardo
Associate Payment
Accommodation (Expenses)
Transport (Expenses)
Loopo Circuits
£14,500.00
£5,820.00
£2,560.00
£1,440.00
Catering (Expenses) £480.00
Vovue Al
£13,940.00
£7,300.00
15% off annual license
£12,800.00
Cost (Average per Year)
Select an option below to reply.
Wazaar Cyber will be the cheapest supplier. However, even going with Wazaar, changing our process will
not save us any money after five years.
Loopo Circuits will be the cheapest supplier. In comparison to the current…
Chapter 14 Solutions
Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - Prob. 1PCh. 14 - Eight Flags operates several amusement parks in...Ch. 14 - Prob. 3PCh. 14 - Beagle Clothiers uses a weighted score for the...Ch. 14 - Prob. 5P
Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Acadia Logistics anticipates that it will need...Ch. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 1VCCh. 14 - Prob. 2VCCh. 14 - Prob. 3VCCh. 14 - Prob. 4VCCh. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3C
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