Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter 13, Problem 3VC
Question:
3. What are some concerns the team needs to consider when using dynamic pricing with frequent changes in price?
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Q³
Question 2
"In air cargo revenue management, for every flight we operate, we first must forecast the capacity so we can understand how much space we can sell. Unlike on the passenger side where the number of seats is rather standard, the cargo capacity will vary based on the route, the aircraft, the number of passengers, the number of bags passengers are carrying and other metrics."
Karri Kauppi, Head of Cargo Revenue Management & Pricing, Finnair
Source: The Complexities of Air Cargo Revenue Management
https://www.kambr.com/articles/the-complexities-of-air-cargo-revenue-management
(a) According to Karri Kauppi, cargo revenue management (CRM) is complex. The first thing in CRM is to forecast the air cargo capacity which would depend on factors e.g. the route, the aircraft, the number of passengers, the number of bags and other metrics.
Appraise how Karri practises CRM in forecasting air cargo capacity and pricing available cargo space for sale in order to maximize profitability.…
QUESTION 7
In sourcing, variable costs include:
a
All costs associated with an item except for the price paid for the product.
b
All costs associated with shipping an item
c
All costs associated with an item.
d
All costs associated with storing an item
Chapter 13 Solutions
Operations Management
Ch. 13 - Prob. 1DQCh. 13 - Why are SOP teams typically cross-functional?Ch. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Question: 7. What is level scheduling? What is the...Ch. 13 - Question: 8. Define mixed strategy. Why would a...Ch. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Question: 11. What is the relationship between the...Ch. 13 - Prob. 12DQCh. 13 - Question: 13. What are major limitations of using...Ch. 13 - Prob. 14DQCh. 13 - Question: 13.1 Prepare a graph of the monthly...Ch. 13 - Prob. 2PCh. 13 - The president of Hill Enterprises, Terri Hill,...Ch. 13 - Prob. 4PCh. 13 - Prob. 5PCh. 13 - Prob. 6PCh. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Question: 13.10 The SOP team (see Problem 13.9)...Ch. 13 - Prob. 11PCh. 13 - Prob. 12PCh. 13 - Prob. 13PCh. 13 - Question: 13.14 Jerusalem Medical Ltd., an...Ch. 13 - Prob. 15PCh. 13 - Prob. 16PCh. 13 - Prob. 17PCh. 13 - Question: 13.18 Jose Martinez of El Paso has...Ch. 13 - Prob. 19PCh. 13 - Prob. 20PCh. 13 - Prob. 21PCh. 13 - Prob. 22PCh. 13 - Prob. 1CSCh. 13 - Prob. 2CSCh. 13 - Prob. 1VCCh. 13 - Prob. 2VCCh. 13 - Question: 3. What are some concerns the team needs...
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- QUESTION #1 Mrs. Johnson, the owner of a small manufacturing business has patented a new device for kitchen appliance. Before trying to commercialize the device and add it to her existing product line, the she wants reasonable assurance of success. Variable costs are estimated at $8 per unit produced and sold. Fixed costs are about $60,000 per year. a. Forecasted sales for the first year are 15,000 units if the price is reduced to $20. With this pricing strategy, what would be the product's total contribution to profits in the first year? b. If the selling price is set at $30, how many units must be produced and sold to break even? Use both algebraic and graphic approachesarrow_forwardQuestion and Observe: At what level of demand (number of units) per year would these two alternatives be equal? Graphically represent these two alternatives and their tradeoff point.arrow_forwardQuestion 3 (Module 2): In the past, Arup Mukherjee's tire dealership in Sudbury sold an average of 1,000 radials each year. In the past two years, 200 and 250, respectively, were sold in fall, 350 and 300 in winter, 150 and 165 in spring, and 300 and 285 in summer. With a major expansion planned, Mukherjee projects sales next year to increase to 1,200 radials. What will be the demand during each season?arrow_forward
- Question 4 b) Company ABC wishes to evaluate whether to produce a component internally or purchase from a vendor. The firm has the following options: Internal Production Process 1 Process 2 Purchase from Vendor Vendor 1 Vendor 2 Vendor 3 Variable cost of $17 per unit; annual fixed cost of $200,000 Variable cost of $14 per unit; annual fixed cost of $240,000 Offers a price of $20 per unit for any volume up to 30,000 units Offers a price of $22 per unit for 1,000 units or less, and $18 per unit for large quantities Offers a price of $21 per unit for the first 1,000 units and $19 per unit for additional units If the annual demand is 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best?arrow_forwardQuèstion 3 There are several pricing methods. Juice Co. just opened in Bahrain and they serve all different kinds of juices and snacks. They also use a lot of oranges and lemons in their juices, but all of the orange and lemon peels are thrown away and wasted. 1. What pricing strategy would you suggest Juice Co. use? 2. Define it. For the toolbar, press ALT+F10 (PC) or ALT+FN+F1O (Mac). B I Paragraph Arial 10pt A V x² X, 深|T 田田 田田用国 +, ABE 田 T (6) O WORDS POWE A Moving to another question will save this response. hp 19 144 !!! > 血arrow_forwardQuestion content area Part 1 Maria manages a bakery, that specializes in ciabatta bread, and has the following information on demand and costs: Ciabatta Bread Sold Per Hour (Q) Price (P) Total Cost (TC) 0 $6.00 $1.50 1 5.50 5.50 2 5.00 8.50 3 4.50 11.00 4 4.00 13.00 5 3.50 14.50 6 3.00 15.50 7 2.50 17.00 8 2.00 19.50 Part 2 a. To maximize profits, Maria should sell enter your response here loaves of ciabatta bread per hourarrow_forward
- Q2) 3. What is long range plan?arrow_forwardQ3. Polygram Sound Systems manufacturers and sell sound systems for both home and auto. All parts of the sound systems, with the exception of CD players, are produced in the Rochester, New York, plant. CD players used in the assembly of Concord, New Hampshire. Polygram purchasing agent Mary Kim submit a purchase requisition for CD players once every 4 weeks. The company's annual requirement is 24000 units, and the cost per unit is $40.00. Polygram does not purchase in greater quantities because Morris Electronics does not offer discounts and promises delivery within 1 week upon receiving the purchase requisition, and rarely is there a shortage of CD players. (Total time between date of order and date of receipt is 8 days). Associated with the purchase of each shipment, there are procurement costs which amount to $20 per order, (these includes the costs of preparing the requisition, inspecting and storing the delivered goods, updating inventory records, issuing a voucher and a check for…arrow_forwardQuestion 3: Jerry has preferences over cats, c, and hats, h, that can be described by u(c, h) = min{2c, 2h}. Sketch the following curves (where pertinent, put c on the horizontal axis and h on the vertical axis): (1) Jerry's price consumption curve as the price of cats p. changes. (2) Jerry's demand curve for cats. (3) Jerry's income consumption curve. (4) Jerry's Engel curve for cats and Jerry's Engel curve for hats.arrow_forward
- Question 25 The price elasticity of demand for the following product is.... Product 1 a) perfectly inelastic b) unit elastic c) inelastic d) elastic Price 1 $30 Units Sold 150 000 Price 2 $24 Units Sold 180 000arrow_forwardFist mandatory variable Profit expectation in a year Tel Aviv (ILS) France (euro) Initial disbursement 1000000.00 300000.00 Annual collection 3000000.00 1000000.00 Annual payment 800000.00 600000.00 Annual interest rate ??? ??? Question: Give the maximum score to an expected profits of 500000 euro?|arrow_forwardQUESTION 15 Compare and contrast “strategic blunder” and “strategic drift”arrow_forward
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