EBK OPERATIONS MANAGEMENT
13th Edition
ISBN: 8220103675987
Author: Stevenson
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 15, Problem 1P
A manager at Strateline Manufacturing must choose between two shipping alternatives: two-day freight. Using five-day freight. Using five-day freight would cost $135 less than using two-day freight. The primary consideration is holdi.t1g cost, which is $10 per unit a year. Two thousand items are to be shipped. Which alternative would you recommend? Explain.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
After applying the NWC Rule for the initial tableau of the given transportation model, evaluate the vacant
cells. What is the cell which has the most negative evaluation value and what is the cell evaluation value?
DESTINATION
SOURCE
DEMAND
X
Y
N
OX-R; 1
OY-S; -1
OX-S; -1
OY-S; -2
P
75
8
12
EI
11
Q
80
5
8
11
R
120
7
10
10
S
50
11
13
14
SUPPLY
100
125
100
325
Which of the following modes of transportation is the best in Loss and Damage?
Select one:
O 1. Air
O 2. Truck
O 3. Rail
O 4. Sea
O 5. Pipeline
d-Term Exam)_BUS 384 (page 15 of 20)
2316036-SUPPLY CHAIN AND LOGISTICS MANAG
Soru 15
Logistics firms or divisions deliver goods from places of lower value to the customer to places where they
Cevap
are of higher value, which of the following does it provide?
kaydedildi
5,00 üzerinden
içaretlenmiş
Lütfen birini seçin
O a Ownership benefit
P Soruyu
igaretle
Ob Structure benefit
Oc Space benefit
Od Shape benefit
O e Time benefit
Seçimimi Temızle
Onceki sayfa
Sonraki sayfa
O O
||>
Chapter 15 Solutions
EBK OPERATIONS MANAGEMENT
Ch. 15.2 - READING AT 3M, A LONG ROAD BECAME A SHORTER ROAD...Ch. 15.2 - READING AT 3M, A LONG ROAD BECAME A SHORTER ROAD...Ch. 15.9 - Prob. 1RQCh. 15.9 - Prob. 2RQCh. 15.9 - Prob. 3RQCh. 15.9 - Prob. 4RQCh. 15.9 - Prob. 5RQCh. 15.14 - Prob. 1RQCh. 15.14 - Prob. 2RQCh. 15 - Prob. 1DRQ
Ch. 15 - Prob. 2DRQCh. 15 - Prob. 3DRQCh. 15 - Prob. 4DRQCh. 15 - Prob. 5DRQCh. 15 - Prob. 6DRQCh. 15 - Prob. 7DRQCh. 15 - Prob. 8DRQCh. 15 - Prob. 9DRQCh. 15 - Prob. 10DRQCh. 15 - Prob. 11DRQCh. 15 - Prob. 12DRQCh. 15 - Prob. 13DRQCh. 15 - Prob. 14DRQCh. 15 - Prob. 15DRQCh. 15 - Prob. 16DRQCh. 15 - Prob. 17DRQCh. 15 - Prob. 18DRQCh. 15 - Prob. 19DRQCh. 15 - Prob. 20DRQCh. 15 - Prob. 21DRQCh. 15 - Prob. 1TSCh. 15 - Prob. 2TSCh. 15 - Prob. 3TSCh. 15 - Prob. 1CTECh. 15 - Prob. 2CTECh. 15 - Prob. 3CTECh. 15 - Prob. 4CTECh. 15 - A manager at Strateline Manufacturing must choose...Ch. 15 - Prob. 2PCh. 15 - A manager must make a decision on shipping. There...Ch. 15 - Prob. 1CQCh. 15 - Prob. 2CQ
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?arrow_forwardSuppose the Motorboat dealership in part (a) above dealing in costly motorboats follows the policy of carrying a few units in stock and ordering for replenishment as soon as a motorboat is sold from the stock. The unit cost of the motorboat is $60,000 and the holding or carrying cost is $5,000 per unit per year. The management of Motorboat dealership believe that the shortage cost due to waiting for the motorboat is $2,000 per unit short per month. The demand is seen to be Poisson distributed with an average rate of 2 units per month and the replenishment lead time can be considered to be exponential with a mean of one month. Considering the system as an M/M/s queuing system, find the optimal stock to be carried which can minimize the sum total of carrying and shortage costs.arrow_forwardWhat is the net ADR yield given the following information: ADR = $180 Distribution channel costs = $40arrow_forward
- Given that: Sales = $300,000,000 Transportation cost = $15,000,000 Warehousing cost = $4,000,000 Inventory carrying cost rate (W) = 30% Cost of goods sold = $95,000,000 Other operating costs = $55,000,000 Average Inventory (AI) = $15,000,000 Accounts receivable = $35,000,000 What is the total operating cost? Group of answer choices 56,500,000 48,500,000 75,500,000 78,500,000 68,500,000arrow_forwardA company's distribution and warehouse expenses do NOT include which one of the following? a) The costs of processing, boxing, packaging, handling, and shipping orders to footwear retailers and -online buyers b)A standard import tariff of $4.00 per pair on any pairs imported from the company's foreign production facilities--tariffs are due and payable at the port of entry rather than when the pairs are sold c)Annual leasing and maintenance fees of $1 million for each of the company's four distribution centers; however, such expenses fall to 5 times the number of pairs sold when warehouse volume in any region is less than 200,000 pairs annually (should company managers decide to abandon selling footwear in a geographic region, leasing and maintenance costs will fall to $0 (resuming if/when sales begin again) d)The inventory costs of carrying unsold pairs over from the prior year ($0.50 per pair on required inventrory and $1 per pair on additional unsold pairs) e)Per pair freight…arrow_forwardYour company produces two types of products. One is in liquid form(highly toxic) and the other one is in packages. Your customer is located in Antalya and your company is located in Gebze region.The typical shipment method is tank truck and box type trucks. Considering these two alternative type of shipments, which one will have a higher cost and why? (Your answer is accepted in case you can back your decision with at least three sentences.) PLS JUST 3 OR 4 SENTENCES short answer.arrow_forward
- Define what is meant by "landed cost." What might be an advantage of offering a single landed cost amount to a customer, rather than splitting the cost out separately; (product cost plus freight cost?)arrow_forwardDoes variation in demand matter? What is its respective implications? (High/low)arrow_forwardK Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 30 units and is valued at $100 per unit. Inbound shipments from vendor 1 will average 300 units with an average lead time (including ordering delays and transit time) of 4 weeks. Inbound shipments from vendor 2 will average 490 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $39,000. (Enter your response as a whole number.) b. The average aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is $ 39,500. (Enter your response as a whole number.) c. How would your analysis change if average weekly demand increased to 60 units per week? The average aggregate inventory value of the product if Ruby-Star used vendor 1…arrow_forward
- ***** The company Marombeiro is a commercial representative of a food supplement widely consumed in gyms. The average daily demand for the product is 1,500 units and a standard deviation of 300 units. Average shipping time is 5 days. Of course, if the order is placed at the end of the week, it may take a little longer to receive the shipment, so the standard deviation of the delivery time is 2 days. The unit has a value of R$ 50.00 per unit in stock, an order cost of R$ 50.00 and an annual maintenance fee of 20%. Suppose Company Marombeiro wants to change the service to 99%. How many days of safety stock the company will have. ( )5.12 days ( )5.67 days ( )5.33 days ( )4.77 daysarrow_forwardHow does the Wilson approach adapt to seasonal variations in demand and inventory management?arrow_forwardPls solve this question correctly in 5 min i will give u like for sure Question # 1 Teresa Cohan is attempting to perform an inventory analysis on one of her most popular products. Annual demand for this product is 5,000 units; unit cost $200; carrying cost is considered to be approximately 10% of the unit price. Order costs for her company typically run nearly $30 per order and lead time averages 10 days. Discounted unit cost of Rs. $150 (carrying cost remain the same) for more than 300 units is also being offered. (Assume a 50-week year. a)What is economic order quantity? b)What is the reorder point? c)What is the total carrying + ordering cost? d)What is optimal number of orders per year? e)Would you recommend availing the discount?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY