Concept explainers
a)
Case summary:
Person H and 400 co-workers were terminated from a company as a result of downsizing. She tried for another job for almost 8 months. However, she could not able to find a job. Hence, she thought making money by mowing the lawns of her neighbors. After so many rejections from the job search, she decided to make it as her business.
In the initial stages, it was little slow. However, after few months, most of the neighbors preferred Person H to mow their lawns over professional lawn care services. Other services performed by Person H are shrubbery, trimming, fertilizing lawns, and weeding gardens.
To determine: The kind of things that requires
b)
Case summary:
Person H and 400 co-workers were terminated from a company as a result of downsizing. She tried for another job for almost 8 months. However, she could not able to find a job. Hence, she thought making money by mowing the lawns of her neighbors. After so many rejections from the job search, she decided to make it as her business.
In the initial stages, it was little slow. However, after few months, most of the neighbors preferred Person H to mow their lawns over professional lawn care services. Other services performed by Person H are shrubbery, trimming, fertilizing lawns, and weeding gardens.
To determine: The inventory items that person H have and inventory decision that she has to make periodically.
c)
Case summary:
Person H and 400 co-workers were terminated from a company as a result of downsizing. She tried for another job for almost 8 months. However, she could not able to find a job. Hence, she thought making money by mowing the lawns of her neighbors. After so many rejections from the job search, she decided to make it as her business.
In the initial stages, it was little slow. However, after few months, most of the neighbors preferred Person H to mow their lawns over professional lawn care services. Other services performed by Person H are shrubbery, trimming, fertilizing lawns, and weeding gardens.
To determine: The
d)
Case summary:
Person H and 400 co-workers were terminated from a company as a result of downsizing. She tried for another job for almost 8 months. However, she could not able to find a job. Hence, she thought making money by mowing the lawns of her neighbors. After so many rejections from the job search, she decided to make it as her business.
In the initial stages, it was little slow. However, after few months, most of the neighbors preferred Person H to mow their lawns over professional lawn care services. Other services performed by Person H are shrubbery, trimming, fertilizing lawns, and weeding gardens.
To determine: The importance of quality assurance to Person H’s business.
e)
Case summary:
Person H and 400 co-workers were terminated from a company as a result of downsizing. She tried for another job for almost 8 months. However, she could not able to find a job. Hence, she thought making money by mowing the lawns of her neighbors. After so many rejections from the job search, she decided to make it as her business.
In the initial stages, it was little slow. However, after few months, most of the neighbors preferred Person H to mow their lawns over professional lawn care services. Other services performed by Person H are shrubbery, trimming, fertilizing lawns, and weeding gardens.
To determine: The kinds of maintenance that must be performed.
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Operations Management
- Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?arrow_forwardScenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.arrow_forwardScenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?arrow_forward
- 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. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?arrow_forwardScenario 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_forwardThe following are some check points: * Problem 6: Month 9 forecast: 26.333; Month 9 error: -3.333 * Problem 7: Month 7 forecast: 22.68; Month 7 error -0.68 * Problem 16A: ROLLED DOWN unit forecast for part C is 22, F is 2, I is 254, and L is 3.arrow_forward
- Identify some of the important short term and long term considerations in forecasting capacity requirements? Explain each point thoroughly. What steps can organizations take to ensure a realistic determination of capacity requirements?arrow_forwardUsing the accompanying log-log graph, answer the following questions: What are the implications for management if it has forecast its cost on the optimum line? What could be causing the fluctuations above the optimum line? If management forecast the tenth unit on the optimum line, what was that forecast in hours? If management built the tenth unit as indicated by the actual line, how many hours did it take?arrow_forwardActual sales data (in pounds) for roasted coffee beans at a grocery store are given in the table below: Week 1 2345 Actual Sales 180 201 165 174 192arrow_forward
- This historical demand for 4 periods demand is 70, 60, 80, and 90 respectively. What is the two-period weighted moving average forecast for fifth period assuming equal weights of 0.5 each O a. None is correct O b. 81.20 O. 70.1 Od. 0.0 O e. 85.00arrow_forward1.A firm has 77 units of a product on hand. Forecasts of demand are 26 units per week. An MPS quantity of 90 units is planned to arrive in period 3. Customer orders are 29 for period 1, 27 for period 2, and 19 for period 3.What is the projected on-hand inventory at the end of period 3? (use excel to show formulas)arrow_forwardWeighted moving average using Excel:3.1 Calculate demand forecast for weeks 7-24 using 6 week weighted moving average with weights 0.55, 0.1, 0.1, 0.1, 0.1, 0.053.2 Calculate demand forecast for weeks 7-24 using 6 week weighted moving average with weights 0.2, 0.2, 0.2, 0.15, 0.15, 0.13.3 Plot the two weighted moving average forecasts together with the actual demand. Comment on the obtained graph.3.4 Using the forecasting error measures seen in class, evaluate the forecasting error of each method. Accordingly which method is better?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningManagement, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub