PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
11th Edition
ISBN: 9780135226742
Author: HEIZER
Publisher: PEARSON
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Chapter 11.S, Problem 10P
Summary Introduction

To select: The best vendor for Company WE.

Introduction: Supply chain management is one of the important elements of a business which impacts business product development. With expanding businesses in global conditions, supply chain activities can impact on the cost effectiveness of these businesses.

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A firm wants to stop its sales agents from pricing too aggressively to make sales by requiring the agent to obtain a marketing manager’s permission to reduce price below a specific threshold. This solution would only work if   a) The marketing manager has no information about the matter at hand   b) The marketing manager can only get all the information on the case from the sales agent   c) Enough unbiased information is transferred to the manager to prevent an unprofitable price reduction   d) All of the above   Please clearly explain your answer
eBook Problem 7-15 Par, Inc., is a small manufacturer of golf equipment and supplies. Par's distributor believes a market exists for both a medium-priced golf bag, referred to as a standard model, and a high-priced golf bag, referred to as a deluxe model. The distributor is so confident of the market that, if Par can make the bags at a competitive price, the distributor will purchase all the bags that Par can manufacture over the next three months. A careful analysis of the manufacturing requirements resulted in the following table, which shows the production time requirements for the four required manufacturing operations and the accounting department's estimate of the profit contribution per bag: Product Standard Deluxe Cutting and Dyeing 7/10 1 Production Time (hours) Sewing ½ 516 Finishing 1 2/3 Inspection and Packaging 1/10 1/₁ Profit per Bag $10 $9 The director of manufacturing estimates that 630 hours of cutting and dyeing time, 600 hours of sewing time, 708 hours of finishing…
Discuss other reasons why a supplier would want to control the end-user price of its products.

Chapter 11 Solutions

PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB

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