EBK PRINCIPLES OF OPERATIONS MANAGEMENT
10th Edition
ISBN: 8220102744059
Author: HEIZER
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.
AirBoxChips is a relatively big company and has a good reputation in terms of reliability and delivery. As it is a big company, it provides supply guarantee and sells its products with a higher price. Specifically, it charges $1.20 for each chip that it sells.
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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Demand in chips has a 75%…
Chapter 8 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
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Ch. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10PCh. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Prob. 13PCh. 8 - Prob. 14PCh. 8 - Prob. 15PCh. 8 - Prob. 16PCh. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Prob. 20PCh. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Prob. 1CSCh. 8 - Prob. 2CSCh. 8 - Prob. 3CSCh. 8 - Prob. 4CSCh. 8 - Prob. 1.1VCCh. 8 - Prob. 1.2VCCh. 8 - Prob. 1.3VCCh. 8 - Prob. 2.1VCCh. 8 - Prob. 2.2VCCh. 8 - Prob. 2.3VCCh. 8 - Prob. 2.4VC
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