OM (with OM Online, 1 term (6 months) Printed Access Card)
6th Edition
ISBN: 9781305664791
Author: David Alan Collier, James R. Evans
Publisher: Cengage Learning
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Chapter 6, Problem 1PA
Summary Introduction
Interpretation:Important supply chain related considerations and decisions to be made by a small scale firm planning to expand into the global market.
Concept Introduction:
Going global is something anticipated by many business organizations that operate within the day. With the rise of concepts such as globalization, as the barriers between nations have been brought down organizations expand their presence to counties outside their origin. However, when doing so, organizations need to consider many important aspects and make sound decisions as reversing such a decision could even cause the company closure. Having in place streamlined supply chain operations is essential in going global as it could be considered the backbone of a global business.
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Problem 11-6 (Algo)
Richard's Sporting Goods needs to fill an online order for 150 hockey sticks. The manager is considering shipping the order by truck to
the customer in Wisconsin, at a carrier charge of $70. The delivery will take five days and the order is paid on delivery (Richard's
doesn't get paid until the sticks are received). The hockey sticks are valued at $50 for each stick and Richard's uses a 30 percent
annual inventory carrying charge.
a. What will be the total shipping and transit inventory cost of the shipment? (Use 365 days in a year. Do not round intermediate
calculations. Round your answers to 2 decimal places.)
Transit inventory cost
24
0.21
Total cost
2$
100.80
b-1. If the shipment could be delivered in only 2 days at a cost of $95, then what will be the total shipment cost? (Use 365 days in a
year. Do not round intermediate calculations. Round your answer to 2 decimal places.)
Total cost
107.30
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draw a generic supply chain diagram illitrating the south african organization having the a chinese supplier to suplly them with PPE gear.
Note:-
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Chapter 6 Solutions
OM (with OM Online, 1 term (6 months) Printed Access Card)
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