Concept explainers
A
Interpretation: The optimal solution should be determined.
Concept Introduction: Decision making is a process of determining the alternative option to a given situation. It reaches the most suitable option for action. During decision making, the factors and some uncertainties are taken to consider.
B
Interpretation: The total cost of the solution should be calculated.
Concept Introduction: Decision making is a process of determining the alternative option to a given situation. It reaches the most suitable option for action. During decision making, the factors and some uncertainties are taken to consider.
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Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
- 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_forwardWhat policies would you recommend the government undertake to alleviate the trucker shortage and the container port backlog.arrow_forward
- Explain the importance of warehouses to Garden-Williams Logistics. Explain which type of warehouse Garden-Williams Logistics should make use of. Justify your answer. Identify criteria you believe is important regarding the location of a warehouse and relate it to Garden-Williams Logistics. Determine what type of warehouse activities will be conducted in your chose type of warehouse. Provide an argument indicating whether you will include a warehouse management system.arrow_forwardSuppliers A, B, and C supply components to three plants -- F, G, and H via two transshipment facilities -- T1 and T2. It costs $4 to ship from T1 regardless of final destination and $3 to ship to T2 regardless of supplier. Shipping to T1 from A, B, and C costs $3, $4, and $5, respectively, and shipping from T2 to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. The Logistics Manager has come to you for help. Answer the following question: Which of these is not an element of the objective function? Group of answer choices 4D-T1 600T1 9T2-G 3C-T2 Plz do fast asaparrow_forwardBriefly discuss the various types of water carriers and their role in the supply chain.arrow_forward
- Usman traders is a wholesale business unit based in Dubai having operations in Oman. The company is dealing with textile equipment in large quantities. The business has a separate stores department which maintains a full-fledged stores register which will be updated on a day to day basis with all the stock movements. At the end of the previous month, the company management has called for a strategic meeting to discuss the future plans to improve the performance of the business. One of the partner has raised his concern about the increasing total cost of the business and he suggested to use any appropriate Inventory control technique to reduce the overall cost of the company. The management accountant is considering to implement EOQ purchase in the business to reduce the overall cost of the company. Upon request, the stores department has provided with the following information to estimate the EOQ. Annual demand for the tableware is given as 10000 Units and the business has to spend OMR…arrow_forwardDefine AIR FREIGHT?arrow_forwardThe Logistics Scoreboardarrow_forward
- E-5 Boston Executive, Inc., produces executive limousines and currently manufactures the mini-bar inset at these costs: (refer the attached image) The company received an offer from Elite Mini-Bars to produce the insets for $2,100 per unit and supply 1,000 mini-bars for the coming year’s estimated production. If the company accepts this offer and shuts down production of this part of the business, production workers and supervisors will be reassigned to other areas. Assume that for the short-term decision-making process demonstrated in this problem, the company’s total labor costs (direct labor and supervisor salaries) will remain the same if the bar inserts are purchased. The specialized equipment cannot be used and has no market value. However, the space occupied by the mini-bar production can be used by a different production group that will lease it for $55,000 per year. Should the company make or buy the mini-bar insert?arrow_forwardPickrr has developed an online dashboard that can be used by businesses to quickly and easily ship orders across the country. This allows the user to choose from 12 different courier companies to ship, and they can even choose to ship at the least cost or ship with the lowest delivery time. Shipments done via Pickrr dashboard already cost less compared to directly approaching a courier company. The company has a small number of beta customers and is planning to charge a small subscription fee from every user when the dashboard is ramped up. How will you price the subscription, and design a sales strategy for this dashboard. Do make and state any assumptions necessary.arrow_forwardSealy Ltd. is a newly established mattress factory that has calibrated its operations towards supplying high quality mattresses to the hotel trade as well as to the general public. The company intends to maximize it supply chains operations by ensuring that the three macro processes that manage the flow of information, product and funds required to generate, receive and fulfill a customer order is optimized in its operations. The company’s transportation network is also being designed but is being analyzed in terms of possible trade-offs that may have to be made in order to optimize the operation. Additionally, another far reaching decision that the company has to make is regarding the sourcing of raw material for their operations in particular whether to source in house or to outsource the supply chain function. As a new company in the 21st Century it is expected that information technology will play a pivotal role in the operations of the company Describe the functioning of the…arrow_forward
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning