A firm is attempting to minimize its shipping costs. The firm has 3 factories and must supply the needs of its 3 customers without shortages. Since the firm has no storage facilities, each factory must make daily shipments to its customers. The table below shows the capacity of each factory, the amount required by each customer, and the cost of shipping from each factory to each customer. Factory/Capacity A/130 units B/110 units C/100 units Factory A B C Customer 1 10 8 5 Requirement-170 units Total cost Shipping Costs ($/unit) Customer 2 Shipping Costs ($/unit) Customer 1 Customer 2 Customer 3 14 7 9 Requirement-57 units Complete the table below to show the quantity shipped from each factory to each customer. (Leave no cells blank - be certain to enter "0" wherever required.) What is the total cost of meeting customer requirements each day? Customer 3 14 12 7 Requirement-113 units.

A firm is attempting to minimize its shipping costs. The firm has 3 factories and must supply the needs of its 3 customers without shortages. Since the firm has no storage facilities, each factory must make daily shipments to its customers. The table below shows the capacity of each factory, the amount required by each customer, and the cost of shipping from each factory to each customer. Factory/Capacity A/130 units B/110 units C/100 units Factory A B C Customer 1 10 8 5 Requirement-170 units Total cost Shipping Costs ($/unit) Customer 2 Shipping Costs ($/unit) Customer 1 Customer 2 Customer 3 14 7 9 Requirement-57 units Complete the table below to show the quantity shipped from each factory to each customer. (Leave no cells blank - be certain to enter "0" wherever required.) What is the total cost of meeting customer requirements each day? Customer 3 14 12 7 Requirement-113 units.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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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?
Alyce operates a factory that manufactures pencil boxes which she sells to stationery store. Additional information: Annual demand is 1 million pencil boxes per year Setup cost is $5000 per batch Holding cost is $3 per year for each pencil boxes Maximum production capacity is 2 million pencil boxes per year Currently, pencil boxes are manufactured in 10 batches. 1 a) Find the optimum production quantity that Alyce should produce to minimize her costs. b) Calculate the current annual holding cost and setup cost. c) Draw a diagram showing stock level for the first batch, assume 1 year has 250 working days
the members of an instamural softball team decided to get cutom t-shirts made. there arer two screening shoops in town that they can choose from wave graphic charges a setup fee of $22 and then each shirt is $7. The shirt shack doesnt charge a setup fee but each shirt is $9. if for some bizarre reason the team decided to only order three shirts question 1. the goal to find the # of shirts for which the two shops would charge the same. a. wright a equation that describes the cost c of buying x shirts from the shirt shack b. wright an equation thsat describes the cost C of buying x shirts from wave graphics c. now you have a sytem of equations with each shop by making a table of values number of x shirts are 3,6,9,12,15 whats the cost for each one shack and cost of wave graphic for each one?
Demand for stereo headphones and music players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for this year was as follows: MONTH DEMAND (UNITS) January 4,150 February 4,250 March 3,950 April 4,350 May 4,950 June 4,650 July 5,250 August 4,850 September 5,350 October 5,650 November 6,250 December 5,950 a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.8. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this…
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Problem 20-10 (Algo) You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day's paper for $0.45 a copy. You sell a copy of San Pedro Times for $1.40. Daily demand is distributed normally with mean = 340 and standard deviation = 68. At the end of each morning, any leftover copies are worthless and they go to a recycle bin. a. How many copies of San Pedro Times should you buy each morning? (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Round your z-value to 2 decimal places and final answer to to 2 decimal places.) 8 Answer is complete but not entirely correct. Optimal order quantity 0.05 b. Based on a, what is the probability that you will run out of stock? (Round your answer to the nearest whole number.) * Answer is complete but not entirely correct. Probability 3 X %
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Yu Amy Xia bas developed a specialized airtightvacuum bag to extend the freshness of seafood shipped to restaurants.She has put together the following demand cost data: You decides that the initial inventory of 250 units will incur the$0.20/unit cost from each prior quarter (unlike the situation inmost other companies, where a 0 unit cost is assigned).a) Find the optimal pla n using the transportation method.b) What is the cost of the plan?c) Does any regula r time capacity go unused? If so, how much in which periods?b) What is the extent of backordering in units and dollars?
13.2 A company manufactures component parts for machine tools in North America and ships them to Southeast Asia for assembly and sale in the local market. The components are shipped by sea, transit time averages 6 weeks, and the shipping costs $2700 per shipment. The company is considering moving the parts by air at an estimated cost of $7500; the shipment taking 2 days to get there. If inventory in transit for the shipment costs $125 per day, should they ship by air?
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,120 February 4,220 March 3,920 April 4,320 May 4,920 June 4,620 July 5,220 August 4,820 September 5,320 October 5,620 November 6,220 December 5,920 a. Using linear regression analysis, what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round…
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1. Using the data provided here for problem 1. Calculate the following: 6 7 8 | 9 Week Demand 1| 2 3 4 5 2554 2333 4678 4525 2243 2988 2301 3777 3245 2122 2987 2487 2567 10 11 12 13 a. Average weekly demand. b. Target inventory for 98% Inventory Service Level for this period if you get replenished with new inventory every two weeks. Formulas used: a. b.