Spreadsheet Modeling & Decision Analysis: A Practical Introduction to Business Analytics (MindTap Course List)
8th Edition
ISBN: 9781305947412
Author: Cliff Ragsdale
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 5, Problem 4.1C
Summary Introduction
Case summary:
Person HL is the VP of purchasing of consumer electronics division of Company M. The company recently introduced a new video camcorder that has taken over the market. Person HL is finding it difficult to keep up with the distributor’s orders of the camcorder. The major distributors are in City PH, City DR, City BE, and City HN. Company M has contracts with companies in Country HK, Country KA, and Country SE. Company M also has a standing contract with a shipping company to transport the products from the suppliers to the ports in City SF and City SD.
To draw: A network flow model for the given problem.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The Bright Company wants to figure out the best way to ship their new product,
Flying Widgets, from their factories through their warehouses to their retail outlets.
They would like to set up a Transhipment table so they can use POM to find the least
cost shipping routes. They have hired you to set up the Transhipment table based on
the information below. You will be paid handsomely if you can come up with the
correct table.
Shipping Costs
Shipping Costs
01
02
03
04
Wi
W2
W3
W1
4.
2
F1
4
W2
4
F2
4
2
W3
4.
3.
4.
Also, Flying Widgets can be shipped from Factory 1 to Factory 2 for $3 per unit.
Factory 1 can produce 300 units and factory 2 can produce 100 units.
Outlet 1 demand is 50 units, Outlet 2 is 150 units, Outlet 3 is 100 units, and
Outlet 4 is 100 units.
Supply chain management (SCM) is a critical component of organizational management that focuses on the efficient coordination of the flow of goods, services, and information from raw material suppliers to end customers. Effective supply chain management involves the strategic planning and execution of processes to optimize the procurement, production, and distribution of products or services. Key aspects of SCM include supplier relationship management, inventory management, logistics, and demand forecasting. By streamlining supply chain processes, organizations can minimize costs, improve operational efficiency, and enhance customer satisfaction. Additionally, SCM plays a vital role in risk management by identifying potential disruptions and implementing contingency plans to mitigate their impact. In today's globalized and interconnected marketplace, effective supply chain management is essential for maintaining competitiveness and resilience. How can organizations leverage technology…
The AB e-commerce company has started operating by using a 3PL partner and benefits from saving time and money with a more streamlined order fulfillment process and inventory management. By outsourcing fulfillment, the 3PL is automatically notified when an order is placed.Also, partnering with a 3PL helps reduce logistics costs in the long run. Unlike hiring an internal team to manage inventory and shipping, 3PLs store the inventory and their team of fulfillment experts are trained to keep overall logistics costs down. Furthermore, 3PL arrangement helps split inventory across locations so the company can eliminate shipping to the highest, most expensive shipping zones and keep inventory closer to more customers.To have a more integrated distribution process, would reducing dependency on 3PL be a viable option in the long term for the AB company for cost management and control? Justify with your understanding of supply chain management concepts. also, using your knowledge of other open…
Chapter 5 Solutions
Spreadsheet Modeling & Decision Analysis: A Practical Introduction to Business Analytics (MindTap Course List)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?arrow_forwardScenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?arrow_forwardPickrr has developed an online dashboard that can be used by businesses to quickly and easily ship orders across the country. This allows the user to choose from 12 different courier companies to ship, and they can even choose to ship at the least cost or ship with the lowest delivery time. Shipments done via Pickrr dashboard already cost less compared to directly approaching a courier company. The company has a small number of beta customers and is planning to charge a small subscription fee from every user when the dashboard is ramped up. How will you price the subscription, and design a sales strategy for this dashboard. Do make and state any assumptions necessary.arrow_forward
- Supply chain management is a critical function within organizations that involves the coordination of activities related to the sourcing, procurement, production, and distnbution of goods and services. Effective supply chain management aims to optimize the flow of materials, information, and finances across the entire supply chain network, from suppliers to end customers. Key components of supply chain management include strategic sourcing, which involves selecting the right suppliers based on factors such as quality, cost, and reliability, inventory management, which seeks to minimize carrying costs while ensuring product availability, and logistics management, which focuses on the efficient transportation and storage of goods. Additionally, supply chain managers must collaborate closely with internal departments as well as external partners to mitigate risks, manage disruptions, and continuously improve the performance of the supply chain. By adopting technologies such as data…arrow_forwardYou are a logistics manager of Medical Device Depot, Inc., located in Ellicott City, MD. Your job is to develop logistics solutions for your international customers. Now you receive an order about one unit of SR-130 Portable X-Ray System Based on the information of company webpage, this equipment has the value of $16,000 and its storage dimension is 26"W x 53" Lx 28"H. This customer is located in Shanghai, China. You may need to google or contact service providers to get quotes. You need to propose two transportation options including transit time and total costs. The two options are: 1) Air shipping: from Ellicott City, MD (BWI airport) to Shanghai, China (SHA airport); 2) Ocean shipping: from Ellicott City, MD (Port of Baltimore) to Shanghai, China (Port of Shanghai).arrow_forwardPhilibert Enterprises Inc is a manufacturing and distribution company that is engaged insupplying exotic Caribbean Food products of high quality for the European and NorthAmerican markets. The Product Quality and consistency of supplies of the product are twocritical success factors. Philibert Enterprises Inc. has been using its website as its principalpoint of contact for its customers It recently won a major contract to supply the Marks&Spencer chain in the UK, where persons of Caribbean origin are a significant group in thepopulation. This is in addition to the growing popularity of Caribbean Cuisineinternationally. High productivity levels are necessary to meet the product quality anddelivery time requirements. The Marketing Manager is expected to work closely with theHuman Resource Manager to develop a reward system that will enable greater reliabilitywith respect to response time and assure quality and compliance with HACCAP1requirements. 1. how can the following criteria…arrow_forward
- Philibert Enterprises Inc is a manufacturing and distribution company that is engaged insupplying exotic Caribbean Food products of high quality for the European and NorthAmerican markets. The Product Quality and consistency of supplies of the product are twocritical success factors. Philibert Enterprises Inc. has been using its website as its principalpoint of contact for its customers It recently won a major contract to supply the Marks&Spencer chain in the UK, where persons of Caribbean origin are a significant group in thepopulation. This is in addition to the growing popularity of Caribbean Cuisineinternationally. High productivity levels are necessary to meet the product quality anddelivery time requirements. The Marketing Manager is expected to work closely with theHuman Resource Manager to develop a reward system that will enable greater reliabilitywith respect to response time and assure quality and compliance with HACCAP1requirements. 1. Outline the factors that…arrow_forwardDistribution systems and strategies do not guarantee the success or growth of e-commerce and e-business in the distribution industry. However, recognising the importance of distribution systems and strategies and developing and continuously improving distribution systems significantly affected the current success of Amazon. Analyse these statements and advise Amazon on the factors to consider when selecting a distribution channel.arrow_forwardThe air cargo product is an important source of revenue and differentiator for cargo airlines. Regardless of whether these are combination carriers of all-cargo specialists, airlines compete intensely for the airport to airport cargo service. Singapore Airlines Cargo (SIA Cargo) competes intensely for market share in a highly competitive air cargo sector. SIA Cargo is a division that sits within Singapore Airlines. It operates a dedicated freighter fleet which the division complements with belly capacity on passenger flights that are operated by Singapore Airlines and its subsidiaries. (a) Discuss how SIA Cargo distinguishes itself from competition in the current COVID-19 environment for the following market segments that it serves: E-commerce logistics Perishables Pharmaceuticals It is important that you contextualise your answer to SIA Cargo and not give generic answers. (b) Why do you think that it is essential for SIA Cargo to offer differentiated products and services? Give…arrow_forward
- Third-party logistics (3PL) is a good term for shipping and delivery firms. What are third-party suppliers and why do corporations employ them?arrow_forwardPhilibert Enterprises Inc is a manufacturing and distribution company that is engaged in supplying exotic Caribbean Food products of high quality for the European and North American markets. The Product Quality and consistency of supplies of the product are two critical success factors. Philibert Enterprises Inc. has been using its website as its principal point of contact for its customers, It recently won a major contract to supply the Marks& Spencer chain in the UK, where persons of Caribbean origin are a significant group in the population. This is in addition to the growing popularity of Caribbean Cuisine internationally. High productivity levels are necessary to meet the product quality and delivery time requirements. The Marketing Manager is expected to work closely with the Human Resource Manager to develop a reward system that will enable greater reliability with respect to response time and assure quality and compliance with HACCAP equirements. tline the factors that…arrow_forwardSupply Chain Logistics networks are designed to maximize operational efficiency. Companies attempt to optimize logistics through either a developed network or designing their own network. Discuss when it would be appropriate for a company looking to expand to design their own logistics network or utilize a 3pl or 4pl provider. Specifically address what criteria company would use to make this decision.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
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