EBK OPERATIONS MANAGEMENT
EBK OPERATIONS MANAGEMENT
14th Edition
ISBN: 9781260718447
Author: Stevenson
Publisher: MCG COURSE
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Chapter 15, Problem 2P
Summary Introduction

To determine: Which shipping alternative would be most economical.

Introduction: Supply chain defined as a sequence of associations, their offices, capacities, and actions that are engaged with manufacturing and conveying a product or administration. The chain starts with essential providers of raw materials and stretches out the distance to the last client. The supply chain fragment required with getting the completed item from the producer to the purchaser is known as distribution channel.

A supply chain is a sequence starts with essential providers or raw materials and stretches out the distance to an item or administration. No business association can exist without the two operations and supply chain.

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TJ, Inc. makes three nut mixes for sale to grocery chains located in the Southeast. The three mixes, referred to as the Regular Mix, the Deluxe Mix, and the Holiday Mix, are made by mixing different percentages of five types of nuts. In preparation for the fall season, TJ, Inc. just purchased the following shipments of nuts at the prices shown: Type of Nut Shipment Amount (pounds) Cost per Shipment ($) Almond 6,100 7,500 Brazil 7,400 7,025 Filbert 7,400 6,750 Pecan 6,000 7,100 Walnut 7,400 7,875 The Regular Mix consists of 15% almonds, 25% Brazil nuts, 25% filberts, 10% pecans, and 25% walnuts. The Deluxe Mix consists of 20% of each type of nut, and the Holiday Mix consists of 25% almonds, 15% Brazil nuts, 15% filberts, 25% pecans, and 20% walnuts. An accountant at TJ, Inc. analyzed the cost of packaging materials, sales price per pound, and so forth, and determined that the profit contribution per pound is $1.70 for the Regular Mix,…
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