Operations Management: Processes and Supply Chains, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134855424
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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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.
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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, Student Value Edition Plus MyLab Operations Management with Pearson eText -- Access Card Package (12th Edition)
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
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