In each of the following, name the term defined. Answersare listed at the bottom. A supply chain that must deal with high levels of both supply and demand uncertainty. In order to cope with high levels of supply uncertainty, a firm would use this strategy to reduce risk. Used to describe functions related to the flow of material in a supply chain. When a firm works with suppliers to look for opportunities to save money and benefit the environment. Refers to an estimate of the cost of an item that includes all costs related to the procurement and use of an item, including the costs of disposing of after its useful life.

In each of the following, name the term defined. Answersare listed at the bottom. A supply chain that must deal with high levels of both supply and demand uncertainty. In order to cope with high levels of supply uncertainty, a firm would use this strategy to reduce risk. Used to describe functions related to the flow of material in a supply chain. When a firm works with suppliers to look for opportunities to save money and benefit the environment. Refers to an estimate of the cost of an item that includes all costs related to the procurement and use of an item, including the costs of disposing of after its useful life.

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

Chapter2: The Purchasing Process

Section: Chapter Questions

Problem 1GPE

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You have been made the purchasing manager of a local bakery that specialises in artisanal bread, pastries, and cakes. This bakery is steadily growing in the Durban CBD and is seeing increased growth month on month as a result of lowered Covid-19 regulations. Answer the following questions with application to your new role. The human resources function and the finance function are required for efficient purchasing and supply activities. Explain how these two functions depend on the purchasing function with application to the bakery.
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Refer to the slides on buy-back contracts to answer this question. A publisher sells books to Borders at $12 each. The marginal production cost for the publisher is $1 per book. Borders prices the book to its customers at $24 and expects demand over the next two months to be normally distributed, with a mean of $20,000 and a standard deviation of $5000. Borders places a single order with the publisher for delivery at the beginning of the two-month period. Currently, Borders discounts any unsold books at the end of the two months down to $3, and any books that did not sell at full price sell at this price. How many books should Borders order? What is the expected profit? How many books does it expect to sell at a discount? What is the profit that the publisher makes given Borders’ actions? A plan under discussion is for the publisher to refund Borders $5 per book that does not sell during the two-month period. As before, Borders will discount them to $3 and sell any that remain.…
The following lots of a particular commodity were available for sale during the year Beginning inventory 7 units at $49.00 First purchase 18 units at $54.00 Second purchase 25 units at $59.00 Third purchase 14 units at $59.00 The firm uses the periodic system, and there are 23 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year according to the FIFO method? Select the correct answer. $1,127.00 $1,357.00 $3,616.00 $3,593.00
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As a part of its procurement strategy, a company is evaluating whether it should switch to a new supplier. A part of the evaluation will focus on the price schedules that the two suppliers are offering. The annual demand for the product is 270,000units. The cost of placing an order, independent of the supplier or the order quantity, is $200, and the carrying charge is estimated to be 18% of the item's price. Which supplier and what order quantity should the company use if its objective is to minimize its total related inventory costs? Order Quantity Price per Unit 0–3,999 $24 4,000–8,999 $23 9,000 or more $22 Order Quantity Price per Unit 0–3,999 $24 4,000–7,999 $23 8,000 –11,999 $21 12,000 or more $19 The company should order _____ units from the Supplier ________ (Enter your response rounded to the nearest whole number.)
Some companies import and export flowers worldwide. It is one of the very competitive businesses in the world. “Fresh Phool” is an international flower company working in Pakistan. It has received a significant order inquiry for fresh Roses from Bangladesh. What incoterm will the Fresh Phool company be settling with the buyer? Expalin the reasons for selecting each incoterm. (Note: Select only one incoterm that you recommend is the most appropriate. Highlight the interest and concerns of various stakeholders while discussing that incoterm) Answer format: It is preferred that your answers are structured in paragraphs with specific and relevant heading for each paragraph Length of the answer: 300 words
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As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Selling Price Variable Cost % of Revenue Soft Drink $1.20 $0.70 24 Wine $2.00 $1.00 26 Coffee $1.00 $0.35 30 Candy $0.75 $0.30 20 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $250.00 (5 booths with 3 people each). Even if nothing is sold, your labor cost will be $250.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $80.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-even point in…
MGMT Bakehouse Inc supplies bread, cakes and other specialty products, to a large percentage of the country. In a market where the customer can return stale bread for up to a 100% refund, having ‘Returns’ is like burning paper money. All baked goods have a shelf life of one week. That is, bread that is sold on Monday is returned the following Monday. Most customers place orders in advance but wholesalers and hotels are sometimes ad-hoc and the company has to project/predict their orders. Recently there have been complaints that some product lines and/or customers are experiencing high returns. At the same time there is a very specific set of customers consistently experiencing short deliveries. The company wishes to maximize sales while minimizing returns. 1. From the perspective of the Human Resource department and management level, Suggest ONE contributing factor that may be upsetting the business process(es) as HR manager and ONE contributing factor for those customers…
Suppose that a large discount retailer with a lot of purchasing power in a supply chain requires that all suppliers incorporate a new information system that will reduce the cost of placing orders between the retailer and its suppliers as well as between the suppliers and their suppliers. Suppose also that order quantities and lead times are related; the smaller the order quantity the shorter the lead time from suppliers. Assume that all members of the supply chain use a continuous review system and EOQ order quantities. Explain the implications of the new information system for the supply chain in general and the inventory systems of the supply chain members in particular.
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