3. Answer the following article. i. Ethical Dilemma As a manufacturer of athletic shoes whose image indeed performance is widely regarded as socially responsible, you find your costs increasing Traditionally, your athletic shoes have been made in Indonesia and China. Although the ease of doing business in those countries has been improving, wage rates have also been increasing. The labor cost differential between your e your current suppliers and a contractor s and a contractor who will get the shoes made in Vietnam now exceeds $1 per pair. Your sales next year are projected to be 10 10 million pains, and your analys suggests that this cost differential is not offset by any other tangible costs you face only the political risk and potential damage to your commitment to social responsibility. T Thus the S1 per pair savings she should flow directly to yo your b bottom line There is t repre 4. Fernando Garza's firm wishes to use factor rating to help select an outsourcing provider of logistics services. ii. Perhaps more significantly, you will have little or no control over working conditions, sexual harassment, and pollution What do you do and on what basis do you make your decision? With weights from 1-5 (5 highest) and ratings 1-100 (100 highest), use the following table to help Garza make his decision: CRITERION WEIGHT 5 3 2 Quality Delivery Cost RATING OF LOGISTICS PROVIDERS OVERNIGHT WORLDWIDE SHIPPING DELIVERY 90 80 85 80 70 70 UNITED FREIGHT 75 70 95 Garza decides to increase the weights for quality, delivery, and cost to 10, 6, and 4, respectively. How does this change your conclusions? Why? If Overnight Shipping's ratings for each of the factors increase by 1096, what are the new results?
3. Answer the following article. i. Ethical Dilemma As a manufacturer of athletic shoes whose image indeed performance is widely regarded as socially responsible, you find your costs increasing Traditionally, your athletic shoes have been made in Indonesia and China. Although the ease of doing business in those countries has been improving, wage rates have also been increasing. The labor cost differential between your e your current suppliers and a contractor s and a contractor who will get the shoes made in Vietnam now exceeds $1 per pair. Your sales next year are projected to be 10 10 million pains, and your analys suggests that this cost differential is not offset by any other tangible costs you face only the political risk and potential damage to your commitment to social responsibility. T Thus the S1 per pair savings she should flow directly to yo your b bottom line There is t repre 4. Fernando Garza's firm wishes to use factor rating to help select an outsourcing provider of logistics services. ii. Perhaps more significantly, you will have little or no control over working conditions, sexual harassment, and pollution What do you do and on what basis do you make your decision? With weights from 1-5 (5 highest) and ratings 1-100 (100 highest), use the following table to help Garza make his decision: CRITERION WEIGHT 5 3 2 Quality Delivery Cost RATING OF LOGISTICS PROVIDERS OVERNIGHT WORLDWIDE SHIPPING DELIVERY 90 80 85 80 70 70 UNITED FREIGHT 75 70 95 Garza decides to increase the weights for quality, delivery, and cost to 10, 6, and 4, respectively. How does this change your conclusions? Why? If Overnight Shipping's ratings for each of the factors increase by 1096, what are the new results?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:3. Answer the following article.
i.
Ethical Dilemma
As a manufacturer of athletic shoes whose image indeed
performance is widely regarded as socially responsible, you
find your costs increasing Traditionally, your athletic shoes
have been made in Indonesia and China. Although the ease
of doing business in those countries has been improving, wage
ii.
rates have also
between increasing. The labor cost differential
between your current suppliers and a contractor who will get
the shoes made in Vietnam now exceeds 1 per
r. Your sales
sects that this for by any
any other
tag you face only and potential
ANAS
There
repressive and is a long way from a democracy. Perhaps more
significantly, you will have little or no control over working
4. Fernando Garza's firm wishes to use factor rating to help select an outsourcing provider
of logistics services.
conditions, sexual harassment, and pollution. What do you do,
and on what basis do you make your decision?
T
bottom line.
With weights from 1-5 (5 highest) and ratings 1-100 (100 highest), use the following
table to help Garza make his decision:
CRITERION WEIGHT
5
3
Quality
Delivery
Cost
2
RATING OF LOGISTICS PROVIDERS
OVERNIGHT WORLDWIDE
SHIPPING
DELIVERY
90
70
70
80
85
80
UNITED
FREIGHT
75
70
95
Garza decides to increase the weights for quality, delivery, and cost to 10, 6, and
4, respectively. How does this change your conclusions? Why?
If Overnight Shipping's ratings for each of the factors increase by 10%, what are
the new results?
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