Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 9, Problem 3.3Q
Summary Introduction
Case Summary:A spend analysis of C’s gate sports camp is provided and looking for a new contract for outside catering. A tender invite was sent and attracted six catering companies for bidding. For finalizing catering tender, food quality score and delivery risk score was awarded to each company.
Interpretation:It is to be determined which company should be chosen for outside catering contract.
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Chapter 9 Solutions
Practical Operations Management
Ch. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6P
Ch. 9 - Prob. 7PCh. 9 - Prob. 8PCh. 9 - Prob. 9PCh. 9 - Prob. 10PCh. 9 - Prob. 11PCh. 9 - Prob. 12PCh. 9 - Prob. 13PCh. 9 - Prob. 14PCh. 9 - Prob. 15PCh. 9 - Prob. 16PCh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Prob. 1.1QCh. 9 - Prob. 1.2QCh. 9 - Prob. 1.3QCh. 9 - Prob. 2.1QCh. 9 - Prob. 2.2QCh. 9 - Prob. 2.3QCh. 9 - Prob. 2.4QCh. 9 - Prob. 2.5QCh. 9 - Prob. 3.1QCh. 9 - Prob. 3.2QCh. 9 - Prob. 3.3Q
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- Explain why a markup of 10% on a $600,000 cost estimate (bid = $660,000) will produce a profit less than $60,000.arrow_forwardWhat's the difference between a standard commercial contract and an outsourcing contract? Which of the two is more important? Why? What elements should you take into account while forming a vendor selection team and its charter? Which of the eight steps in the vendor identification and selection process is the most important? Why? Justify your answer. The key areas of concern in recognizing and managing BPO expenses are the financial and strategic costs. Which is the more essential of the two? Justify your answer. What was the importance of the BPO industry during the COVID Pandemic of 2020?arrow_forwardA tender advert appeared in the print media on 12th March 2020 to run for four (4) weeks. A week from the date of issue, it was discovered that the conditions of contract were not included in the bidding document. So far, a good number of prospective bidders had already accessed the document. The tender was due to close on 9th April 2020 and no extension were allowed because the procurement under discussion was very urgent. REQUIRED: Explain the steps you would take as a procurement expert to normalize this situation?arrow_forward
- Cost-Based Pricing Decision Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires $2,610 of direct materials, $2,349 of direct labor, and $1,697 of overhead. Jeremy normally applies a standard markup based on cost of goods sold to arrive at an initial bid price. He then adjusts the price as necessary in light of other factors (e.g., competitive pressure). Last year's income statement is as follows: Sales $175,500 Cost of goods sold 94,770 Gross margin $80,730 Selling and administrative expenses 46,300 Operating income $34,430 Required: 1. Calculate the markup that Jeremy will use. Round your answer to one decimal place. % 2. What is Jeremy's initial bid price? Round your answer to the nearest dollar.arrow_forwardTo arrive at the final price(s) for your offering(s):1 ln you considered you customers and compelilors and set three possible prices. Now, modify three prices in light of (a) pricing considerations for demand, cost, profit, and competition-oriented approaches descriced in this chapter, and (b) possibilities for discounts, allowances, and geographical adjustments.2 Perform a break-even analysis for each of these three uew prices.3 Choose the final price(s).arrow_forwardWhat are the different kinds of price adjustments? In which situations do companies use each one?arrow_forward
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