Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
12th Edition
ISBN: 9780134742205
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 14, Problem 8P
A
Summary Introduction
Interpretation: The best selector to be selected, if there is a low demand for the new service of the company, for the moderate demand, and for the high demand assumptions.
Concept Introduction: The Company receives orders from the customers online, and then the company assembles and delivers those orders in specially designed cardboard boxes. Now, after a period of time, the company has decided to relieve the contract with an international supplier.
B
Summary Introduction
Interpretation: The suitable supplier that achieves the lowest expected cost is to be concluded.
Concept Introduction: The Company receives orders from the customers online, and then the company assembles and delivers those orders in specially designed cardboard boxes. Now, after a period of time, the company has decided to relieve the contract with an international supplier.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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
Adelie Enterprises has decided to dropthe international supplier from consideration. Furthermore,Adelie has decided to order boxes in lots of 10,000 to op-timize the use of available storage space at its distributionfacility. To more completely consider the cost/volume trad-eoffs associated with selecting the local or national supplier,management has collected the following data. Adelie servicesits customers 250 days per year.
a. On purely a total cost basis, which supplier should beselected if there is low demand for Adelie’s new service;which supplier should be selected under moderatedemand assumptions; and which supplier should beselected under high demand?b. Which supplier achieves the lowest expected cost ifthe probability of low demand is 35 percent, moderatedemand is 45 percent, and high demand is 20 percent?
None
Chapter 14 Solutions
Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - Prob. 1PCh. 14 - Eight Flags operates several amusement parks in...Ch. 14 - Prob. 3PCh. 14 - Beagle Clothiers uses a weighted score for the...Ch. 14 - Prob. 5P
Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Acadia Logistics anticipates that it will need...Ch. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 1VCCh. 14 - Prob. 2VCCh. 14 - Prob. 3VCCh. 14 - Prob. 4VCCh. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- In the course of supply chain, we have studied two basic supply chain strategies. Now, using examples, compare and contrast the characteristics of an efficient supply chain and a responsive supply chain. Answer format: It is preferred that your answers are in a bullet style with having specific and relevant heading for each bullet point. Length of each answer: Between 150 and 250 words (each part) Marks distribution of the question is as follows: Originality. Comprehensiveness & Clarity of explanation: 50% Reasoning/ Rationality/ Logic: 50%arrow_forwardConsider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer's demand over an 8-week period was 90 units each of the first 2 weeks, 220 units each of the second 2 weeks, 280 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is often the case in supply chains due to economies of scale, that total units are the same in each case, but firms further up the supply chain (away from the retailer) place larger, less frequent, orders. Week Retailer Manufacturer Supplier1 90 180 6202 90 0 03 220 440 04 220 0 05 280 560 1,3606 280 0 07 400 800 08 400 0 0 a) What is the bullwhip measure for the retailer? The bullwhip measure for the retailer is ??? (Enter your response rounded to two decimal places.) b) What is the bullwhip measure for the…arrow_forwardWeek 1 2 3 4 5 6 7 8 Retailer 110 110 190 190 310 310 410 410 Manufacturer 220 380 620 820 Supplier 600 1,440arrow_forward
- Consider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer's demand over an 8-week period was 110 units each of the first 2 weeks, 190 units each of the second 2 weeks, 310 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is often the case in supply chains due to economies of scale, that total units are the same in each case, but firms further up the supply chain (away from the retailer) place larger, lessfrequent, orders. WEEK RETAILER MANUFACTURER SUPPLIER 1 110 220 600 2 110 3 190 380 4 190 5 310 620 1420 6 310 7 400 800 8 400 a) What is the bullwhip measure for the retailer? The bullwhip measure for the retailer is ______. (Enter your response rounded to two decimal places.) b) What is the bullwhip measure for the manufacturer? The bullwhip measure for the…arrow_forwardConsider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer's demand over an 8-week period was 110 units each of the first 2 weeks, 220 units each of the second 2 weeks, 280 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is often the case in supply chains due to economies of scale, that total units are the same in each case, but firms further up the supply chain (away from the retailer) place larger, lessfrequent, orders. Week Retailer Manufacturer Supplier 1 110 220 660 2 110 3 220 440 4 220 5 280 560 1360 6 280 7 400 800 8…arrow_forwardExplain and identify TWO (2) types of risk in the supply chain with relevant examples.arrow_forward
- The supply chain manager for Keskin Industries, SeanWillems, has developed the data shown in Table S 11.3 for twovendors. Based on the weights and rankings shown, which is thepreferred vendor?arrow_forwardMo. Your manager is keen to improve your company's supply chain management, in particular to reduce costs and waste. You have been asked to write a report which includes details of two practices from another company which you would suggest adopting in your own company. Include the following: • What you admire about the other company's approach to its supply chain management • Which two of its practices you would adopt • Why your company would benefit from them Write in the space below.arrow_forward“Supply chain management has been a very vital tool in the competitive world of business, and this depends on the product and its supply chain. Managing inventory is a critical activity for the success of supply chain since inventory impacts the costs of goods sold as well as supports customer service”. Discuss the validity of this statementarrow_forward
- The concept of Supply Chain Management (SCM) emphasizes co-operation and collaboration among the firms within a given supply chain. The essence of this concept is that when the firms in a supply chain collaborate, it leads to a win-win situation, i.e. all firms will gain.’ (Van Der Heijden, 2009). Discuss the implications of this statement and how this ‘win-win situation’ can be achieved.(course hero)arrow_forwardChrysler and General Motors vigorously compete with each other in many automobile and truck markets. When Jose Ignacio Lopez was vice president of purchasing for GM, he made it clear that his buyers were not to accept luncheon invitations from suppliers. Thomas Stalcamp, head of purchasing for Chrysler at the time, instructed his buyers to take suppliers to lunch. Rationalize these two directives in light of supplier relations and the impact on supply chain management.arrow_forwardState and explain the critical objectives of a supply chain ?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Contemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage Learning
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY