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Earth Resources Corporation is a multinational company engaged in steamfield development and power plant construction through the government's use of build-operate- transfer (BOT) contracts. Recently, the company has been awarded contracts and has to start drilling operations at four (4) new geothermal sites in the Philippines. In order to ensure that drilling operations are on schedule and in accordance with the provisions of the contract, Earth Resources must send a team of two (2) drilling engineers to each site. Currently, they have eight (8) drilling engineers at various sites where the drilling is almost completed. The chief executive officer (CEO) wants to mobilize all the eight engineers to the four new sites in such a way that the total costs involved is minimized. The CEO requested the company's chief accountant, Ms. Debbie Castro, to prepare a summary of the estimated mobilization costs from the engineer's present locations to their probable new assignments. accomplished after considerable inquiries and are provided in the table below. The table entries represent the mobilization costs (in hundreds of pesos) to each geothermal site. These estimates were Geothermal Site Engineer 2 3 63 79 58 61 76 56 4 Alex Benny Dionisio 82 54 80 74 67 64 Excy Jessie 66 81 78 75 65 71 51 83 Joseph Marty Romeo 60 72 59 57 70 55 73 69 77 62 84 68 After receipt of the report, the CEO called on the company's logistics manager, Thelmo Geolago, "Our profit margin on these new contracts are quite small Thelmo, that is why I want you to help me find ways where we can minimize out expenses. Here is the report prepared by Debbie and I want you to work on it this weekend. I would be glad to have your recommendations by Monday." What should Thelmo Geolago recommend?

Earth Resources Corporation is a multinational company engaged in steamfield development and power plant construction through the government's use of build-operate- transfer (BOT) contracts. Recently, the company has been awarded contracts and has to start drilling operations at four (4) new geothermal sites in the Philippines. In order to ensure that drilling operations are on schedule and in accordance with the provisions of the contract, Earth Resources must send a team of two (2) drilling engineers to each site. Currently, they have eight (8) drilling engineers at various sites where the drilling is almost completed. The chief executive officer (CEO) wants to mobilize all the eight engineers to the four new sites in such a way that the total costs involved is minimized. The CEO requested the company's chief accountant, Ms. Debbie Castro, to prepare a summary of the estimated mobilization costs from the engineer's present locations to their probable new assignments. accomplished after considerable inquiries and are provided in the table below. The table entries represent the mobilization costs (in hundreds of pesos) to each geothermal site. These estimates were Geothermal Site Engineer 2 3 63 79 58 61 76 56 4 Alex Benny Dionisio 82 54 80 74 67 64 Excy Jessie 66 81 78 75 65 71 51 83 Joseph Marty Romeo 60 72 59 57 70 55 73 69 77 62 84 68 After receipt of the report, the CEO called on the company's logistics manager, Thelmo Geolago, "Our profit margin on these new contracts are quite small Thelmo, that is why I want you to help me find ways where we can minimize out expenses. Here is the report prepared by Debbie and I want you to work on it this weekend. I would be glad to have your recommendations by Monday." What should Thelmo Geolago recommend?

Purchasing and Supply Chain Management
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
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Earth Resources Corporation is a multinational company engaged in steamfield development and power plant construction through the government's use of build-operate- transfer (BOT) contracts. Recently, the company has been awarded contracts and has to start drilling operations at four (4) new geothermal sites in the Philippines. In order to ensure that drilling operations are on schedule and in accordance with the provisions of the contract, Earth Resources must send a team of two (2) drilling engineers to each site. Currently, they have eight (8) drilling engineers at various sites where the drilling is almost completed. The chief executive officer (CEO) wants to mobilize all the eight engineers to the four new sites in such a way that the total costs involved is minimized. The CEO requested the company's chief accountant, Ms. Debbie Castro, to prepare a summary of the estimated mobilization costs from the engineer's present locations to their probable new assignments. accomplished after considerable inquiries and are provided in the table below. The table entries represent the mobilization costs (in hundreds of pesos) to each geothermal site. These estimates were Geothermal Site Engineer 1 2 3 4 63 79 58 61 Alex Benny 54 74 67 64 80 76 56 Dionisio 82 Excy Jessie Joseph Marty Romeo 66 81 78 51 75 65 71 83 60 72 59 57 73 69 70 55 77 62 84 68 After reccipt of the report, the CEO called on the company's logisties manager, Thelmo Geolago, "Our profit margin on these new contracts are quite small Thelmo, that is why I want you to help me find ways where we can minimize out expenses. Here is the report prepared by Debbie and I want you to work on it this weekend. I would be glad to have your recommendations by Monday." What should Thelmo Geolago recommend?
Transcribed Image Text:Earth Resources Corporation is a multinational company engaged in steamfield development and power plant construction through the government's use of build-operate- transfer (BOT) contracts. Recently, the company has been awarded contracts and has to start drilling operations at four (4) new geothermal sites in the Philippines. In order to ensure that drilling operations are on schedule and in accordance with the provisions of the contract, Earth Resources must send a team of two (2) drilling engineers to each site. Currently, they have eight (8) drilling engineers at various sites where the drilling is almost completed. The chief executive officer (CEO) wants to mobilize all the eight engineers to the four new sites in such a way that the total costs involved is minimized. The CEO requested the company's chief accountant, Ms. Debbie Castro, to prepare a summary of the estimated mobilization costs from the engineer's present locations to their probable new assignments. accomplished after considerable inquiries and are provided in the table below. The table entries represent the mobilization costs (in hundreds of pesos) to each geothermal site. These estimates were Geothermal Site Engineer 1 2 3 4 63 79 58 61 Alex Benny 54 74 67 64 80 76 56 Dionisio 82 Excy Jessie Joseph Marty Romeo 66 81 78 51 75 65 71 83 60 72 59 57 73 69 70 55 77 62 84 68 After reccipt of the report, the CEO called on the company's logisties manager, Thelmo Geolago, "Our profit margin on these new contracts are quite small Thelmo, that is why I want you to help me find ways where we can minimize out expenses. Here is the report prepared by Debbie and I want you to work on it this weekend. I would be glad to have your recommendations by Monday." What should Thelmo Geolago recommend?
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