Read the following scenario and answer the questions given bellow. • A car rental company has its offices in three major cites of the area. A costumer once registered with the company, can avail its services from any nearby office. Every office keeps record of the vehicles, their drivers and renting details. Salaries of administrative staff are controlled at a single site while the drivers are paid (according to the services they provide) from their local office. Rates for famous tourism spots are fixed (with a slight difference for different vehicles), while other spots are charged according to the mileage covered. 1. Give details of any of the relations replicated on more than one site
Q: Based on the photograph, the section of question 2, if the economy is currently producing at point F…
A: In business review, the production possibility frontier or PPF is a curve representing the varying…
Q: What recommendation would you make to the GLC board of directors regarding a container ship…
A: Board of Directors is the elected group of individuals who represent the shareholders. The board is…
Q: Required: i. According to the Situation Approach what leadership style(s) should Daniel adopt?
A: There are generally 4 typea of leadership styles 1. Autocratic leadership style 2. Democratic…
Q: What is the best of the best payoff value? DIHL Co. is a Danao-based logistics company owned by…
A: Since the actual requirement of the alpha value not mentioned in the question, we have answered the…
Q: Discuss Vernon’s 1966 Product Life Cycle model as a means of explaining the evolution and sequencing…
A: The product life cycle (PLC) represents the life of a product on the market in terms of…
Q: Levi-Strauss Co manufactures clothing. The quality control department measures weekly values of…
A: SOLUTION: Solving iv , v and vi
Q: Rent'R Cars is a multisite car rental company In the city. It is trying out a new "return the car to…
A: From/To D E F G Supply A 14 14 13 6 65 B 10 5 10 5 40 C 8 10 12 16 150 Demand 60 80 45 70…
Q: during the past four months, george vazquez has been putting together his plan for a new venture.…
A: “Hi and thanks for your question, as you have asked multiple questions at a time, we will be solving…
Q: Civil engineering consulting fi rms that provide ser- vices to outlying communities are vulnerable…
A: The present value of the contracts is the present value of the cash inflow streams discounted at a…
Q: A global manufacturer of electrical switching equipment (ESE) is considering outsourcing the…
A: a. Number of breakers per year = x From the given case, 8000000 + (11)x = (16)x x = 1600000…
Q: Please turn in the Decision Table for the following scenario. A company has various rules for how…
A: Payment to suppliers decision table: One of the process description tools is the decision table. It…
Q: Airbus has been working on the design of the A72WX; the newest plane in the fleet. In order to…
A: Outsourcing refers to a scenario whereby an organization decides to hire a third party to carry out…
Q: The table below shows the maximum output levels for Here and There Cloth Computers 110 Here 60 on…
A:
Q: a. How would you place the three business units of ABC Group across the Boston Consulting Group’s…
A: The Boston Consulting Group, growth share matrix is considered as a tool used for planning which…
Q: #1 — Walmart’s supercenters are a point of competitive strength Walmart’s supercenters are the most…
A: The concept of hypermarket has brought a massive revolution in the retail marketing industry. These…
Q: Small Potatoes is a family-operated seed business that has grown rapidly. Small Potatoes specializes…
A: An individual will suggest the firm after determining the following factors. Cost of outsourcing…
Q: Table below is the cost breakdown per pound for typical big three cereal firms and private labels,…
A: From the given statistics it can be deduced that the margin of Big three is already higher than that…
Q: Using a weighted moving average with three periods, determine the demand for period 13. Use 3, 2,…
A: This question is part of the forecasting approach and this topic falls under the operations…
Q: According to the Path-Goal theory, why is Daniel an effective leader? ii. How does Daniel’s…
A: Daniel is the manager of a small business called The copy Centre .Total 18 employees working at his…
Q: Satory Malaysia Food & Beverage is the Malaysian subsidiary of a big Japanese keiretsu, Satori…
A: Company SM food & Beverage is a subsidiary of country J. It has two plants in two different…
Q: Sustainability and uncertainty discuss the impacts of modern discoveries as substitutes of…
A: In any business or personal life, uncertainty is the most common element as everything in the future…
Q: uestic Belhana Restaurant Company operates a chain of branches at Alexandria and they like to start…
A: Find the Given details below: Given details: Payoff Probability Small Branch Expanded…
Q: satory Malaysia Food & Beverage is the Malaysian subsidiary of a big Japanese keiretsu, Satori…
A: Once a company starts the business, and gets well settled into it, it starts looking for market…
Q: Rao Technologies, a California-based high-tech manufacturer, is considering outsourcing some of its…
A: For w = 0, Source A is better. For w = 10, Source A is better For w = 30, Source A is better
Q: situation is probably best summed up by the fact that the culinary highlight in the district is the…
A: Hospitality Management This type of management is an industry that joins eateries, hotels, clubs,…
Q: Phosphorus is a critical nutrient for sustaining plant and animal life. Phosphorus for crop…
A: A. Yes, the exponential growth model is accurate for the planet production of mined phosphate rocks…
Q: а- Given the pay-off table below showing the profit (present value Rs.), a firm might expect in a…
A: This question problem is where we have to minimize cost and maximize profits, we have all…
Q: Explain how Jollibee Foods Corporation, Globe Telecom, Inc, Petron Corporation anticipate that the…
A: Jollibee Foods Corporation is a fast food restaurant that offers foods and beverages to its…
Q: What was the contribution from sector allocation to security selection? Confirm that the sum of…
A: Expected Return: This time period, specifically, relates to the earnings or loss that an investor…
Q: The executives of a clothing manufacturer want to outsource some of their manufacturing to more…
A: The clothing manufacturing company wants to outsource some of its functions to cost-efficient…
Q: Kryoneriperfume company is considering the followingtwo alternatives for the supply of vetiver oil…
A: To know which alternative is better, We need to calculate the probabilities of two suppliers (No. of…
Q: THE Samsung Electronics factory in Thai Nguyen, in northern Vietnam, employs more than 60,000…
A: In the given case study, foreign investors have the advantage of owning Sabeco because of the theory…
Q: In the Philippines, offshore business process outsourcing is expected to yield a 7.8 percent annual…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Cambridge's annual sales first surpass Crimson's annual sales
A: Given, annual sales of Crimson Pharmacy= S = 2.3 + 0.5t annual sales of Cambridge Pharmacy=S = 1.2 +…
Q: Q2b A company consists of three factories in different locations, dstributing its products to four…
A: Given data is
Q: Choose the place of work that is not covered by OSHA 1994. (a) University. (b) Bank. (c) Workshop.…
A: Occupational Safety and Health Act, 1994, is an Act in Malaysia that provides the legislative…
Q: Q3: Read the case situation given below and answer the following questions. Pearl Continental Hotel…
A: Business management is the control of organizing all periods of ranch activity through arranging.…
Q: Which is the ideal evaluation design method for impact evaluation of Additional Financing for the…
A: So we can say that where I think development organizations have an ultimate mandate to contribute to…
Q: Sourabh Gupta can purchase copper bottles for $ 34 per piece and can manufacture it in house where…
A: In this scenario, there are two options, whether we would go with making the product in house or…
Q: Toyota SA Motors (TSAM) has announced a R4.28bn investment in local vehicle assembly and parts…
A: Marketing deals with identifying the consumer needs and selling products and services that fulfill…
Q: Economics Energy plus biscuit from (Bangladesh) Olympic industries limited is one of the first…
A: When a company divides their customer market according to various factor such as age, culture,…
Q: Where do you think here's a chance of supply chain delays or commodity shortages?
A: When supplies depart the manufacturing facility (supply of finished products) or arrive at the…
Q: Daniel Asante is the manager of a small business called The Copy Center, which is located near a…
A: The success of the firms might be directly proportional to the efforts and dedication of the…
Q: In a table form, identify FIVE Key Risks Indicators that AFRICA WORLD AIRLINES, University of Cape…
A: The aviation industry has entered into a market with several opportunities. In pursuit of these…
Q: Discuss how lack of IT Governance have led to problems in the IT Project in case above.
A: The IT Governance or ITG is referred to as the processes that are included in the ensuring of the…
Q: In the following situations graphically illustrate what happens to the market for blankets in St.…
A: This question talks about fluctuation in supply-demand curve due to weather conditions.
Read the following scenario and answer the questions given bellow.
• A car rental company has its offices in three major cites of the area. A
costumer once registered with the company, can avail its services from any
nearby office. Every office keeps record of the vehicles, their drivers and
renting details. Salaries of administrative staff are controlled at a single site
while the drivers are paid (according to the services they provide) from their local office. Rates for famous tourism spots are fixed (with a slight difference for different vehicles), while other spots are charged according to the mileage covered.
1. Give details of any of the relations replicated on more than one sites
Step by step
Solved in 3 steps
- The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Based on the total cost per unit, which supplier should Sheila recommend?The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Based on this case, do you think international purchasing is more or less complex than domestic purchasing? Why? Is it worth the additional effort?The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Calculate the total cost per unit of purchasing from Original Wire.
- The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Calculate the total cost per unit of purchasing from Happy Lucky Assemblies.The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Are there any other issues besides cost that Sheila should evaluate?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. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
- 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?The Bright Company wants to figure out the best way to ship their new product, Flying Widgets, from their factories through their warehouses to their retail outlets. They would like to set up a Transhipment table so they can use POM to find the least cost shipping routes. They have hired you to set up the Transhipment table based on the information below. You will be paid handsomely if you can come up with the correct table. Shipping Costs Shipping Costs 01 02 03 04 Wi W2 W3 W1 4. 2 F1 4 W2 4 F2 4 2 W3 4. 3. 4. Also, Flying Widgets can be shipped from Factory 1 to Factory 2 for $3 per unit. Factory 1 can produce 300 units and factory 2 can produce 100 units. Outlet 1 demand is 50 units, Outlet 2 is 150 units, Outlet 3 is 100 units, and Outlet 4 is 100 units.Pinkie Ice-Cream ltd. Pinky Ice-cream ltd. is an ice-cream company that is located in the city of Palma and has branches in several communities. The brand is an emerging brand and is becoming very popular among children and young adults. One of the reasons why this brand of ice-cream is becoming so popular is because the quality is outstanding. The Operations manager work closely with the marketing manager to ensure that the best quality ice-cream is sold to customer. The OM manager uses the best quality ingredients and ensures that the best machines and labour are employed in the transformation process. With the aid of a well labeled diagram, briefly describe the transformation process at Pinkie Ice-Cream ltd.
- Following are some of the information on demand and costs of a mobile phone manufacturer: Monthly Sales for previous year were 10,000 Mobile Phones. Overall Market has grown at 15% from the previous year. The company uses a third-party storage solution for keeping its inventory. The charges are Rs. 100/unit. For procuring the raw material company relies on a contractor which provides them a one stop solution and charges Rs. 3000 per order. The actual cost of the raw material is approximately 7000/unit. Using the above given information answer the following questions? What is the Economic Order Quantity for the company? If a working year is 300 days find out how many orders the company will place for the current year and what would the gap between two orders? What will be the total cost of inventory policy for the company? If the delivery lead time for receiving the order is 20 days what should be the reorder point for the company?Explain SUPPLY BASE OPTIMIZATION?I would like you to help me with this question. please include the steps that you are dong Supply and Demand, inequality, feasible Region, Graphical LP
