Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter 11.S, Problem 9DQ
Question:
9. Describe some disadvantages of using a slow shipping method.
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Question 8.4
Super Auto Company rented a warehouse in Halifax, NS to store its engines valued at $500,000. The
engines need to be shipped to the Montreal, QC, plant. The annual holding cost rate for auto engine
has been estimated at 15%. There are five shipping companies available. Their delivery time and costs
are listed in the table below. Which carrier is most economical?
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20
$500
$800
В
15
12
$1200
8.
$1600
E
$2000
Question 3
Dr. Peter Kraljic claims that there is no single best way existed for managing purchasing in allcircumstances. He proposed “Kraljic Purchasing Portfolio model”. Elaburate the FOUR (4)Purchasing Portfolio with suitable examples
answer should be elaborated with proper examples.
D & R A1 2 -3
Question 2. Contango and Backwardation
Explain the relationship between contango, cost-of-carry, and convenience yield.
Chapter 11 Solutions
Operations Management
Ch. 11.S - Prob. 1DQCh. 11.S - Question: 2. It the probability of a super-event...Ch. 11.S - Question: 3. If the probability of a super-event...Ch. 11.S - Question: 4. Describe some ramifications of the...Ch. 11.S - Question: 5. Describe causes of the bullwhip...Ch. 11.S - Question: 6. Describe how the bullwhip measure can...Ch. 11.S - Question: 7. Describe some potentially useful...Ch. 11.S - Prob. 8DQCh. 11.S - Question: 9. Describe some disadvantages of using...Ch. 11.S - Question S11.1 How would you go about attempting...
Ch. 11.S - Question S11.2 Phillip Witt, president of Witt...Ch. 11.S - Question S11.3 Still concerned about the risk in...Ch. 11.S - Question S11.4 Johnson Chemicals is considering...Ch. 11.S - Prob. 5PCh. 11.S - Question S11.6 Consider the supply chain...Ch. 11.S - Question S11.7 Over the past 5 weeks, demand for...Ch. 11.S - Prob. 8PCh. 11.S - Prob. 9PCh. 11.S - Question S11.10 As purchasing agent for Woolsey...Ch. 11.S - Question S11.11 Using the data in Problem S11.10,...Ch. 11.S - Question S11.12 Develop a vendor-rating form that...Ch. 11.S - Question S11.13 Your options for shipping 100,000...Ch. 11.S - Prob. 14PCh. 11.S - Prob. 15PCh. 11.S - Question S11.16 Recently, Abercrombie Fitch (AF)...Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - Prob. 4DQCh. 11 - Question 5. What is vertical integration? Give...Ch. 11 - Question 6 What are three basic approaches to...Ch. 11 - Prob. 7DQCh. 11 - Question 8. What is the difference between...Ch. 11 - Question 9. What is CPFR?Ch. 11 - Question 10. What is the value of online auctions...Ch. 11 - Question: 11. Explain how FedEx uses the Internet...Ch. 11 - Question 12. How does Walmart use drop shipping?Ch. 11 - Prob. 13DQCh. 11 - Question: 14. What can purchasing do to implement...Ch. 11 - Question 15. What is e-procurement?Ch. 11 - Prob. 16DQCh. 11 - Question: 17. What is SCOR, and what purpose does...Ch. 11 - Question: 11.1 Choose a local establishment that...Ch. 11 - Prob. 2PCh. 11 - Question: 11.3 Hau Lee Furniture, Inc., described...Ch. 11 - Question: 11.4 Kamal Fatehl, production manager...Ch. 11 - Question: 11.5 Baker Mfg. Inc. (see Table 11.9)...Ch. 11 - Question: 11.6 Arrow Distributing Corp. (see...Ch. 11 - Question: 11.7 The grocery industry has an annual...Ch. 11 - Question: 11.8 Mattress Wholesalers, Inc., is...Ch. 11 - Question: Dardens Global Supply Chains Video Case...Ch. 11 - Prob. 2CSCh. 11 - Question: Dardens Global Supply Chains Video Case...Ch. 11 - Prob. 4CSCh. 11 - Question Supply Chain Management at Regal Marine ...Ch. 11 - Question Supply Chain Management at Regal Marine ...Ch. 11 - Question Supply Chain Management at Regal Marine ...Ch. 11 - Prob. 2.1VCCh. 11 - Prob. 2.2VCCh. 11 - Prob. 2.3VCCh. 11 - Prob. 2.4VC
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- Q.2. Discuss TWO short term and TWO long term strategies for minimizing supply chains disruptions globallyarrow_forwardQuestion 3Explain the three strategies that are available for distribution of goods.arrow_forwardQUESTION 3 A store has collected the following information on one of its products: Demand = 5,000 units/year Ordering costs = $12/order Holding costs = $4/unit/year Lead-time = 5 days weeks Unit cost = $748/unit Number of weeks per year = 50 weeks a) The firm currently orders 500 units per order. What is the total cost of ordering and holding these goods under this system? b) Determine their economic order quantity and cost of ordering and holding goods using the EOQ. c) Form the ratio of the order quantities under the old policy and EOQ. Form the ratio of the EOQ to the old order quantity. Then form the ratio of their total system costs under the two ordering policies. Average these two ratios and compare this number with the ratio of the old total cost with the total cost under an EOQ policy. d) How do they compare?arrow_forward
- QUESTION 3a. Delightful Coffee Limited (DCLL) purchases coffee from Hopeful Harvest Plantations (HHP)in Santa Cruz, Trinidad. HHP sells coffee at four (4) different prices, depending on the size ofthe order, as shown in Table 3 (below):Table 3. Hopeful Harvest Plantations - Coffee pricesWeight of Coffee Price ($USD)Less than 45 kilograms $18 per kilogram45 to 449 kilograms $17 per kilogram,450 to 1000 kilograms $16 per kilogramMore than 1000 kilograms $15 per kilogramThe cost to place an order at DCLL is $50. Annual demand is 4,500 units. The holding (orcarrying) cost is 20 percent of the material price. (i) Calculate the EOQ at each Price Break.arrow_forwardQUESTION 3a. Delightful Coffee Limited (DCLL) purchases coffee from Hopeful Harvest Plantations (HHP)in Santa Cruz, Trinidad. HHP sells coffee at four (4) different prices, depending on the size ofthe order, as shown in Table 3 (below):Table 3. Hopeful Harvest Plantations - Coffee pricesWeight of Coffee Price ($USD)Less than 45 kilograms $18 per kilogram45 to 449 kilograms $17 per kilogram,450 to 1000 kilograms $16 per kilogramMore than 1000 kilograms $15 per kilogramThe cost to place an order at DCLL is $50. Annual demand is 4,500 units. The holding (orcarrying) cost is 20 percent of the material price. (i) Calculate the EOQ at each Price Break and Indicate which EOQs are feasible and those which are not feasible. Please answer the above questionarrow_forwardQUESTION 3a. Delightful Coffee Limited (DCLL) purchases coffee from Hopeful Harvest Plantations (HHP)in Santa Cruz, Trinidad. HHP sells coffee at four (4) different prices, depending on the size ofthe order, as shown in Table 3 (below):Table 3. Hopeful Harvest Plantations - Coffee pricesWeight of Coffee Price ($USD)Less than 45 kilograms $18 per kilogram45 to 449 kilograms $17 per kilogram,450 to 1000 kilograms $16 per kilogramMore than 1000 kilograms $15 per kilogramThe cost to place an order at DCLL is $50. Annual demand is 4,500 units. The holding (orcarrying) cost is 20 percent of the material price. (iii) What is the economic order quantity that DCLL should buy each time? Please answer the above questionarrow_forward
- Question: 1. How many pounds should she order per day if z= .20? Please show the solution. Thank you.arrow_forwardQUESTION 1• Students are required to: Discuss the approaches that can be implemented to minimise supply chain inventory. Each of the points must be explained in full, with examples• Explain the impact of economies of scale (EoS) on inventory management. Students must reflect on the importance of this technique in relation to continuous inventory availability.arrow_forwardQUESTION: Warehouse management plays a strategic role in the overall supply chain process. Effective warehousing strategies can assist the firms in increasing supply chain surplus. On the basis, of online data availability, select any organization and analyze its warehousing strategies.arrow_forward
- Question 7 The major stated advantage of maquiladoras is to lower costs of taxation. True Falsearrow_forwardQuestion 4 The systems approach highlights the significance of the interdependence of logistics activities. Explain the relationship between the following logistics activities: • Transportation costs and facility location Inventory requirements and transportation mode Packaging requirements and transportation mode Choice of incoterms and transportation mode Inventory requirements and shipment trackingarrow_forwardQuestion 16 "USC' STANDS FOR UNIT SHIPPING COST AREA X AREA Y AREA Z SUPPLIES 300 300 PLANT A 600 USC: 5 USC: 7 USC: 7 200 300 PLANT B 500 USC: 4 USC: 2 USC: 8 DEMANDS 300 500 300 WHICH OF THE FOLLOWING IS TRUE ABOUT THE SUPPLY ALLOCATION ABOVE? The allocation of supplies is not yet optimal (i.e., the revenue can be increased) The allocation of supplies is not yet optimal (i.e., the total shipment cost can still be lowered) O The allocation of supplies is optimal (i.e., the total transportation cost cannot be lowered anymore)) O The allocation of supplies is optimal (i.e., the revenue is maximized)arrow_forward
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