Company RM is one of the 10 largest power boat manufacturers. It spends most of its resources on purchases. The company believes that both the supplier and the firm will benefit only when the supplier understands the needs of end users. Company RM has taken initiatives to cut down cost and raise standards on quality and innovations. First, the company has worked on the partnership with the suppliers and cut down its cost without compromising on quality. The suppliers meet with the designers of the firm to discuss the materials to be incorporated in the new product. Second, the company has joined ABBA, a purchasing group to work with suppliers for reducing cost. Third, the company has tied up with a local supplier to directly provide to the assembly line to implement just-in-time process. Finally, Company R works with an agency to outsource the recruiting of employees, and there the company incorporates innovative approaches in all of its processes. To determine : The importance of supply chain to company RM.

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Answer 1

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 11, Problem 1.3VC

Summary Introduction

Case summary:

Company RM is one of the 10 largest power boat manufacturers. It spends most of its resources on purchases. The company believes that both the supplier and the firm will benefit only when the supplier understands the needs of end users.

Company RM has taken initiatives to cut down cost and raise standards on quality and innovations. First, the company has worked on the partnership with the suppliers and cut down its cost without compromising on quality. The suppliers meet with the designers of the firm to discuss the materials to be incorporated in the new product.

Second, the company has joined ABBA, a purchasing group to work with suppliers for reducing cost. Third, the company has tied up with a local supplier to directly provide to the assembly line to implement just-in-time process.

Finally, Company R works with an agency to outsource the recruiting of employees, and there the company incorporates innovative approaches in all of its processes.

To determine: The importance of supply chain to company RM.

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Question content area Part 1 Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two bin system (C items). The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.) Part 2 Rank the SKUs in descending order on the basis of their annual dollar usage and fill in the table with the ranked SKU's percentage of dollar usage. (Enter your responses rounded to two decimal places.)

Sam's Pet Hotel operates 51 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: > Demand 70 bags/week > Order cost $58.00/order > Annual holding cost 30 percent of cost > Desired cycle-service level = 80 percent >Lead time 4 weeks (24 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 70 bags is incorrect and actual demand averages only 45 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)

a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $enter your response here. (Enter your response as a whole number.) b. The aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is shown below. c. How would your analysis change if average weekly demand increased to 160 units per week? The aggregate inventory values are shown below.

Answer 2

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Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 11, Problem 1.3VC

Summary Introduction

Case summary:

Company RM is one of the 10 largest power boat manufacturers. It spends most of its resources on purchases. The company believes that both the supplier and the firm will benefit only when the supplier understands the needs of end users.

Company RM has taken initiatives to cut down cost and raise standards on quality and innovations. First, the company has worked on the partnership with the suppliers and cut down its cost without compromising on quality. The suppliers meet with the designers of the firm to discuss the materials to be incorporated in the new product.

Second, the company has joined ABBA, a purchasing group to work with suppliers for reducing cost. Third, the company has tied up with a local supplier to directly provide to the assembly line to implement just-in-time process.

Finally, Company R works with an agency to outsource the recruiting of employees, and there the company incorporates innovative approaches in all of its processes.

To determine: The importance of supply chain to company RM.

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Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 11, Problem 1.3VC

Summary Introduction

Case summary:

Company RM is one of the 10 largest power boat manufacturers. It spends most of its resources on purchases. The company believes that both the supplier and the firm will benefit only when the supplier understands the needs of end users.

Company RM has taken initiatives to cut down cost and raise standards on quality and innovations. First, the company has worked on the partnership with the suppliers and cut down its cost without compromising on quality. The suppliers meet with the designers of the firm to discuss the materials to be incorporated in the new product.

Second, the company has joined ABBA, a purchasing group to work with suppliers for reducing cost. Third, the company has tied up with a local supplier to directly provide to the assembly line to implement just-in-time process.

Finally, Company R works with an agency to outsource the recruiting of employees, and there the company incorporates innovative approaches in all of its processes.

To determine: The importance of supply chain to company RM.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 11, Problem 1.3VC

Summary Introduction