Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management
Operations Management: Processes And Supply Chains (12th Global Edition) - Does Not Include Mylab Operations Management
12th Edition
ISBN: 9780134890357
Author: Lee J. Krajewski, Manoj K. Malhotra
Publisher: Pearson Global Edition
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Chapter 14, Problem 2P

Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for the many rides at the parks. Eight Flags needs 30,000 gallons of oil annually; the parks operate 50 weeks a year. Management is unsatisfied with the current supplier of oil and has obtained two bids from other suppliers. The data are contained in Table 14.4.

Which supplier and which shipping quantity will provide the lowest costs for Eight Flags?

Chapter 14, Problem 2P, Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to

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Eight Flags operates several amusement parks in the Midwest. The company stocks machine oil to service the machinery for the many rides at the parks. Eight Flags needs 30,000 gallons of oil annually; the parks operate 50 weeks a year. Management is unsatisfied with the current supplier of oil and has obtained two bids from other suppliers. The data are contained in Table. Which supplier and which shipping quantity will provide the lowest costs for Eight Flags?
please answer correctly in a detailed manner.
Let’s assume you will supply a container of chemicals from China. The supplier has a bad reputation of choosing low-cost & low-quality service providers for logistics. The on-time delivery and short lead time is quite important for your company. The supplier has a fair and variable price list based on different shipment alternatives and INCOTERMs. So in order to supply the goods in line with your priorities, which incoterm(s) would you prefer in case the goods are delivered in container by sea? Why? (Explain in min. 3-4 sentences.)

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