Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Question
Chapter 14, Problem 3P
A
Summary Introduction
Interpretation: Using a preference matrix, the total weighted score for each supplier is to be calculated.
Concept Introduction: Based on the required performance criteria, using the preference matrix, the companies are allowed to choose their best alternative.
B
Summary Introduction
Interpretation: The suppliers that survived the total score hurdle based on the scores they obtained in the score hurdle.
Concept Introduction: Based on the required performance criteria, using the preference matrix, the companies are allowed to choose their best alternative.
C
Summary Introduction
Interpretation: The advantages the company can entertain with the proposed new policy, over the current policy.
Concept Introduction: Based on the required performance criteria, using the preference matrix, the companies are allowed to choose their best alternative supplier.
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Please provide answers to subparts d to J:
Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager is determining a minimum-cost inventory plan for an upcoming phone to be launched in the market. She has collected the following information: • Annual demand: 1000 phones • Phone cost: $1,214 each • Phone RRP: $1,349 each • Net weight: 163 g each • Tare weight: 277 g each • Annual inventory holding cost: 15% • Cost per order to replenish inventory: $75 • Annual in-transit holding cost: 10% • Freight rate: $8.10 per kg • Time to process order for freight: 1 days • Freight transit time: 3 days Solve this problem using a non-linear programming (NLP) model to determine the followings: d. The total cost for holding the inventory e. The total cost for transportation f. The total cost for holding the phones during transit g. The total cost for this inventory plan h. The number of orders i. Ordering point j. The profit from this inventory plan
Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools.
Meanwhile, Weekend Projects is a national chain of retail outlets and wants to find a supplier for a
particular tool set that promises to be a big seller. Expected annual sales are 100,000 units (D).
Weekend's warehouses operate 50 weeks a year. Management collected data on the two suppliers,
which are contained in the table below:
Annual Freight
Costs Shipping
Quantity (Q)
Annual
Lead
Annual
Supplier
20,000
40,000 Price/unit(p)
Administrative
Holding
Cost/Unit(H) (L)(wks)
$1.5
$1.8
Time
Cost
Bradley $30,000 $20,000
Alexander $25,000 $22,000
$6
$5
$20,000
$30,000
4
What is the total annual cost for Weekend Projects if the company chooses Alexander as the
supplier and determines the shipping quantity at 40,000 units per shipment?
$608,600
O $609,600
$606,600
O $607,600
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question :
1/ According to Weele, the items that we measure determines the role of the purchasing function. List these roles, and show the mapping.
2/ According to Simpson and et.al, why should we measure the performance of our suppliers?
3/ According to Simpson and et. al, what are the characteristics of our suppliers should we measure? List these down in terms of evaluative criteria and its details.
Chapter 14 Solutions
Operations Management: Processes and Supply Chains (11th Edition)
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