Before the changes in packaging, shipping costs are $ per month. (Enter your response rounded to two decimal places.) After the changes in packaging, shipping costs are $| per month. (Enter your response rounded to two decimal places.) Thus, the new packaging will shipping costs by $ per month. (Enter your response rounded to two decimal places.)
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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?the documents describe the agreement that the company has with its carrier in the shipment of goods. which one? A) Bill of lading B) sales order C) packing slip D) picking ticketFAS (Free alongside Ship) and FOB (Free on Board) are rules for which kind of transport?
- Monczka-Trent Shipping is the logistics vendorfor Handfield Manufacturing Co. in Ohio. Handfield hasdaily shipments of a power-steering pump from its Ohio plantto an auto assembly line in Alabama. The value of the standard shipment is $250,000. Monczka-Trent has two options:(1) its standard 2-day shipment or (2) a subcontractor whowill team drive overnight with an effective delivery of one day.The extra driver costs $175. Handfield’s holding cost is 35%annually for this kind of inventory.a) Which option is more economical?b) What production issues are not included in the datapresented?Describe the purpose and value of freight documentation. Discuss the function of the following documents: bill of lading, freight bill, and freight claim.Explain a real world example of the bullwhip effect
- Discount-Mart (see Problem 16.8), as part of its newLean program, has signed a long-term contract with SpecialtyLighting and will place orders electronically for its halogen lamps.Ordering costs will drop to $.50 per order, but Discount-Mart alsoreassessed its carrying costs and raised them to $20 per lamp.a) What is the new economic order quantity?b) How many orders will now be placed?c) What is the total annual cost of managing the inventory withthis policy?Describe causes of the bullwhip effect and their associatedremedies.Should management weigh the benefits of holding items in numerous places around the country vs transporting them to customers? How and why? Explain with instances.
- suppose you have an order of 600,000 pieces polo shirt.per box contain 40 pcs polo shirt,carton length: 50 cm, width: 30 cm, height: 30 cm, sea freight cost per CBM $45, shipment will be done in FCL basis.Calculate total required CBM and which container will be justifiable for shipmentReactions and additional comments: Per the textbook definition, the term bullwhip effect “Describes the distortions in a supply chain caused by changes in customer demand, resulting in large swings in inventory levels as the orders ripple upstream from the retailer to the distributor and manufacturer” (Wallace, 2020, p. 137). The term is derived from physics. When cracking a whip, someone just has to snap their wrist and it causes a wave like effect that increases with a chain reaction. The bullwhip effect is a term that was first used in the 1990s. The makers of Pampers had many changes in order volumes, when usually diapers were bought at a constant rate (The Bullwhip effect : History and solutions, 2021). This caused the company to receive hard hits in demand with each new order from the retailers. For example, during the Covid-19 pandemic, everyone was told to stay home, go to school from home, and work from home. This caused the need for many more computers and electronic…Explain and measure the bullwhip effect