Answered: Facility Coordinate Location (x, y)…

Facility Coordinate Location (x, y) Cost of unit truck Annual Load load (ton) ABCDE 10, 80 10 452 30, 60 10 678 80, 50 10 483 Ꭰ 50, 10 10 711 80, 10 10 539

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?
Answer the given question with a proper explanation and step-by-step solution. Monczka-Trent Shipping is the logistics vendor for Handfield Manufacturing Co. in Ohio. Handfield has daily shipments of a power-steering pump from its Ohio plant to an auto assembly line in Alabama. The value of the standard shipment is $255.930. Monczka-Trent has two options: (1) its standard 2-dav shipment or (2) a subcontractor who will team drive overnight with an effective deliverv of ' dav. The extra driver costs $190. Handfied's holding cost is 35% annuallv for this kind of inventorv. Part A: Alternative 2 is more economical, with a daily cost of $_____ . (Enter your response as a whole number.)
A French car company ships 120,000 cars annually to the United Kingdom. The current method of shipment uses ferries to cross the English Channel and averages 10 days. The firm is considering shipping by rail through the Chunnel (the tunnel that goes through the English Channel) instead. That transport method would average approximately 2 days. Shipping through the Chunnel costs $80 more per vehicle. The firm has a holding cost of 25% per year. The average value of each car shipped is $20,000. Which transportation method should be selected?
Evaluate an alternative that involves consolidating all 20-foot container volumes and using onlya single consolidation center in Shanghai/Ningbo. Assume that all the existing 20-foot containervolumes and the existing consolidation center volumes are sent to this single consolidationcenter by suppliers. This new consolidation center volume would be packed into 40-footcontainers, filled to 96 percent, and shipped to the United States. The existing 40-foot volumewould still be shipped direct from the suppliers at 85 percent capacity utilization
Faw Motors, Inc., was incorporated in Volkswagen on July 01, 2003. It has 4 plants across the China that design, manufacture, and market earth moving, construction, and materials handling equipment. It also manufactures engines for earthmoving vehicles and tractor-trailers. Faw Motors products are distributed worldwide. Net income last year totaled $350,000,000. Faw Motors has developed a "Transportation Quality" program in order to reduce shipping damages to its equipment and to ensure its just-in-time production and inventory system. The program consists of two parts. The first part ensures proper lifting and tie-down provisions by working with engineers in the design process. The second part focuses on internal practices to prepare the product for shipment. The chief transportation quality engineer has developed a carrier certification program for both inbound and outbound freight. The program establishes standards requiring the carrier to adhere to 100 percent performance. Use of…
Problem 16-17 (Algo)The U.S. Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air-conditioning systems. These filters are made in a single plant located in Louisville, Kentucky, in the United States. They are distributed to retailers through wholesale centers in 100 locations in the United States, Canada, and Europe. You have collected the following data relating to the value of inventory in the U.S. Airfilter supply chain: QUARTER 1(JANUARYTHROUGHMARCH) QUARTER 2(APRIL THROUGHJUNE) QUARTER 3(JULYTHROUGHSEPTEMBER) QUARTER 4(OCTOBERTHROUGHDECEMBER) All amounts in millions of U.S. dollarsSales (total quarter): United states 414 402 520 514Canada 135 96 126 117Europe 41 34 42 25 Cost of goods sold (total quarter) 384 347 453 434 Raw materials at the Louisville plant (end-of-quarter) 73 62…
Dr Pepper bottles soft drinks that it distributes to retail outlets from ten warehouses in USA. A single bottling plant is located in Seattle. The product is shipped from the plant to the warehouses via trucks each of which possibly travels more than one warehouse in a trip. Dr Pepper outsources the transportation of the products to a third-party trucking company, DHL. DHL charges a fix fee of $500 plus a variable free of $0.80 per miles per a trip of a truck. For instance; if the length of a truck’s trip is 600 miles, then DHL charges 500 + 600*0.80 = $980 to Dr Pepper. The capacity of each truck is 36 pallets but transportation fee does not change if the all capacity is used or not. In a particular day the demands of the warehouses are as listed in the following table. Use Savings method to find the number of routes (trucks) needed, warehouses on the routes, and the sequence the truck should serve the warehouses based on the real distance matrix given below (assume the warehouses are…
You have been asked to assist in determining freight cost for the following shipment from TuJim Device Mfg in Shanghai, China You have contacted a freight forwarder and they have given you the following main freight rates: Air: $19.25/kg Ocean- $150.00w/m The shipment consists of 5 pallets each 625kg ,each 101.6cmx121.92cmx91.44cm Show all calculations used to determine freight costs
What is the 3-month simple moving average for February 2017, given that demand was 100 during October 2016, 200 in November 2016, 300 in December 2016 and 400 in January 2017? a. 350 b. 300 c. 250 d. 400
These are the weight of goods at PT.ABC expedition in kgs :(102, 98, 105, 102, 99, 86, 93, 79, 88, 86) (i) Range?(ii) Mean from the weight of expedition?(iii) Mean deviation from weight of expedition? Note: Show your solution
PROBLEM 8 Jim Huang and Roderick Wheeler were sales representatives in a computer store at a shopping mall in Arlington, Virginia, when they got the idea of going into business in the burgeoning and highly competitive microcomputer market. Jim went to Taiwan over the summer to visit relatives and made a contact with a new firm producing display monitors for microcomputers, which was looking for an East Coast distributor in America. Jim made a tentative deal with the firm to supply a maximum of 500 monitors per month and called Rod to see if he could find a building they could operate out of and some potential customers. Rod went to work. The first thing he did was send bids to several universities in Maryland, Virginia, and Pennsylvania for contracts as an authorized vendor for monitors at the schools. Next, he started looking for a facility to operate from. Jim and his operation would provide minor physical modifications to the monitors, including some labeling,…
DM Office Products (DMOP) is a wholesale supplier of office products with one facility in Pennsylvania. It has decided to build a new distribution warehouse in the state of New York to help serve the growing demand in that market. It has four major customers located in Buffalo, Syracuse, Albany, and New York City. Though New York City is the largest market, it also has the greatest competition, and DMOP is not a major player there. When DMOP ships an order to a customer, it uses its own small fleet of two trucks to deliver, so the cost of delivery is essentially the same for a full or partially full truck. The expected number of annual shipments to each city and their coordinates on an x, y grid is shown in the following table. CITY x-COORDINATES y-COORDINATES NUMBER OF SHIPMENTS Buffalo 340 865 85 Syracuse 1,435 915 89 Albany 2,315 645 129 New York City 2,290 45 69