Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 8, Problem 3P
Summary Introduction
To select: The company which quotes the least cost.
Introduction: Location is one of the important element for a business that controls the cost and expenses. Location strategies support in framing other strategies for a firm where optimal location point will provide competitive advantage to a firm.
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You have been asked to analyze the bids for 200
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ANSWER 8.4
Morton Corporation manufactures computers and wants to select a supplier to purchase chips for its computers. There are two major suppliers of chips – AirBoxChips and SoftChips.
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SoftChips is small company having limited capacity. Even though it charges $0.90 for each chip that it sells, it does not provide supply guarantee. If it is a low-demand year, Softchips is able to satisfy Morton’s demand fully. However, if it is a high-demand year, it allocates only 90,000 chips for the purchase of Morton.
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Chapter 8 Solutions
Principles Of Operations Management
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