Companies A, B, and C supply components to three plants (F, G, and H) via two crossdocking facilities (D and E). It costs $4 to ship from D regardless of final destination and $3 to ship to E regardless of supplier. Shipping to D from A, B, and C costs $3, $4, and $5, respectively, and shipping from E to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. Crossdock facilities D andE can handle 600 and 700 units, respectively. Logistics Manager, Aretha Franklin, had previously used "Chain of Fools" as her supply chain consulting company, but now turns to you for some solid advice. Set up the solution in Excel and solve with Solver. What are total

Companies A, B, and C supply components to three plants (F, G, and H) via two crossdocking facilities (D and E). It costs $4 to ship from D regardless of final destination and $3 to ship to E regardless of supplier. Shipping to D from A, B, and C costs $3, $4, and $5, respectively, and shipping from E to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. Crossdock facilities D andE can handle 600 and 700 units, respectively. Logistics Manager, Aretha Franklin, had previously used "Chain of Fools" as her supply chain consulting company, but now turns to you for some solid advice. Set up the solution in Excel and solve with Solver. What are total

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. 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?
As a Freight Forwarder, you have been asked to export ten containers of top quality Canadian apples to India. The importer is located in New Delhi. New Delhi is not an ocean port Shipment is by ocean from Canada Consignee address: 1200 Parliament Road, Unit 12, New Delhi India, Global Importers Ten Containers by ocean. 200 cartons in each container of apples Each box: 4 Kg actual weight Dimensions: 12x15x12 cubic inches Calculate: 1)Total Actual Weight: 2)Total Volume Weight: 3)Chargeable Weight: 4)What is the correct Incoterm to be used in this shipment?
) O'Donnell & Joyce purchases components from three suppliers. Components purchased from Supplier A are priced at €7 each and used at the rate of 18,000 units per month. Components purchased from Supplier B are priced at €5 each and are used at the rate of 4,500 units per month. Components purchased from Supplier C are priced at €9 each and used at the rate of 1000 units per month. Currently, O'Donnell & Joyce purchases a separate truckload from each supplier. As part of its JIT drive, O'Donnell & Joyce has decided to aggregate purchases from the three suppliers. The trucking company charges a fixed cost of €550 for the truck with an additional charge of €120 for each stop. Thus, if O'Donnell & Joyce asks for a pickup from only one supplier, it charges €670; from two suppliers, it charges €790; and from three suppliers, it charges €910. What replenishment strategy would you suggest for O'Donnell & Joyce to minimize annual costs? Assume an annual holding cost of 25…
JuicyJuicy Company is a dairy manufacturing company in Serdang, Malaysia. This company isthe supplier of dairy products to a number of hypermarkets in the Serdang area. It is critical thateach order be delivered (shipped) and arrive at a specified time to ensure the quality of theirproducts and a good relationship with the buyers. However, for the past two weeks the productscannot reach the location on time. Resulted to that, they are getting many complaints from thecustomers and considering to switch to other suppliers. Thus, the company must overcome theproblem as quickly as possible. (a) Recommend a suitable quality tool that could identify the problem and to monitor thebusiness performance. Please explain and justify your suggestion. (b) Develop the selected tool (answer in part (a)) to show how it can clarify all possiblecauses and solution to the issue.
Use the appropriate strategy to assign joint costs of an LTL route to each of the following shipments. Show your calculations and the assigned cost below. [1] A PUD truck driver works ten hours serving local customers for an LTL carrier. On the route, the driver makes 12 stops at area industries. The driver averaged 25 miles per hour while driving and drove 150 miles. During the trip, the driver handled 80 separate shipments, filling 70% of his truck by weight and 65% by the cube. The route cost a total of $2450. Using the time strategy for PUD cost assignment, determine the costs to be assigned to Shipper A and each shipment if the driver handled 4 shipments (3 delivered, 1 picked up) at the stop, and took 40 minutes to serve the Shipper. Total Assigned Cost for Shipper A Assigned Cost for Each Shipment [2] An LTL linehaul truck route takes 15 hours to complete. During the move, the truck moved an average of 36,500 pounds of freight, which filled 3200 cubic feet of the trailer. The…
Determine how many products to ship from each factory to each warehouse, or from each factory to each warehouse and direct to each end customer, to minimize shipping cost while meeting warehouse demands and not exceeding factory supplies Explain the above scenario using the problem given below: Warehouse Capucity Factory w, W, W. (Supply) 21 16 25 13 F. F, 17 18 14 23 13 32 27 18 41 19 Requirement 6 (Demand) 10 12 15 43 Use least cost Method to solve the problem. Using Transportation method
es Problem 11-4 (LO2) An appliance manufacturer has a plant near Toronto that receives small electric motors from a manufacturer located in Winnipeg. The demand for motors is 118,000 units per year. The cost of each motor is $125. The motors are purchased in lots of 3.400 units. The ownership of motors transfers to the appliance manufacturer in Winnipeg. The question is which mode of transportation, truck or train, the appliance manufacturer should use to bring the motors from Winnipeg to Toronto. The railroad company charges $3 per motor. and it takes approximately seven days by train. The trucking company charges $5 per motor, but it takes only three days. The appliance manufacturer will keep 1,400 units as safety stock if a truck is used and 2.500 units as safety stock if a train is used for transportation. Assume 365 days per year. If the holding cost rate is 25 percent of unit cost per year, which mode of transportation will minimize total transportation and in-transit and safety…
Acme Inc. has decided to outsource and offshore a small electric motor that it currently manufactures itself. It has found an offshore supplier that charges $925,000 for a minimum order quantity of 5,000 motors. Shipping costs for this quantity are $15,000. The buyer expects to place four orders per year to meet its annual need for 20,000 motors. Annual carrying cost is 25% of unit price, and import tariffs are 12% of unit price. The company expects to spend $12,500 per year on contracting and relationship maintenance.What is the total cost of outsourcing and offshoring this motor?
Three suppliers A, B and C, each produce road grit which has to be delivered to council depots W, X, Y and Z. The stock held at each supplier and the demand from each depot is known. The cost, in pounds, of transporting one lorry load of grit from each supplier to each depot is also known. This information is given in the table. Suppliers Depot W Depot X Depot Y Depot Z Stock (Lorry Loads) Supplier A 180 110 130 290 14 Supplier B 190 250 150 280 16 Supplier C 240 270 190 120 20 Demand (Lorry Loads) 11 15 14 10 50 Use VAT method to supply out all the stocks
A- Determine the transportation cost for a parcel - with size 230 cm X 180 cm X 300 cm - and weight 7654 Kg - Rate quoted is $93 per tone / per cubic meter On which base the carrier is going to offer freight cost, and why
2) Using the cost table of the transportation problem shown below, do the following: a) Develop the appropriate LP model of the problem. WAREHOUSE PLANT A B C D DEMAND 1 5 10 7 20 200 2 3 12 5 25 400 3 8 10 10 18 600 4 7 8 12 30 1000 SUPPLY 200 500 300 1000