The New England Cheese Company produces two cheese spreads by blending mild cheddar cheese with extra sharp cheddar cheese. The cheese spreads are packaged in 12-ounce containers, which are then sold to distributors throughout the Northeast. The Regular blend contains 80% mild cheddar and 20% extra sharp, and the Zesty blend contains 60% mild cheddar and 40% extra sharp This year, a local dairy cooperative offered to provide up to 7,850 pounds of mild cheddar cheese for $1.20 per pound and up to 2,040 pounds of extra sharp cheddar cheese for $1.40 per pound The cost to blend and package the cheese spreads, excluding the cost of the cheese, is $0.20 per container. If each container of Regular is sold for $1.85 and each container of Zesty is sold for $2.20, how many containers of Regular and Zesty should New England Cheese produce? Regular

The New England Cheese Company produces two cheese spreads by blending mild cheddar cheese with extra sharp cheddar cheese. The cheese spreads are packaged in 12-ounce containers, which are then sold to distributors throughout the Northeast. The Regular blend contains 80% mild cheddar and 20% extra sharp, and the Zesty blend contains 60% mild cheddar and 40% extra sharp This year, a local dairy cooperative offered to provide up to 7,850 pounds of mild cheddar cheese for $1.20 per pound and up to 2,040 pounds of extra sharp cheddar cheese for $1.40 per pound The cost to blend and package the cheese spreads, excluding the cost of the cheese, is $0.20 per container. If each container of Regular is sold for $1.85 and each container of Zesty is sold for $2.20, how many containers of Regular and Zesty should New England Cheese produce? Regular

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. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
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?
Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. Annual sales $24,324,000 Net income 2,975,000 Cost of goods sold 12,600,000 Total assets 10,550,000 Inventory 2,875,000 Receivables 3,445,000 The Midwest Outdoor Equipment Corporation has entered into a new contract with a major supplier of raw materials used in the manufacturing process. Under the new arrangement, called vendor managed inventory, the supplier manages its raw material inventory inside the manufacturer’s plant and bills only the manufacturer when the manufacturer consumes the raw material. This is expected to reduce total assets by $2 million. What is the expected change in return on assets? Note: Round your answer to 2 decimal places.
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Alice, Wonder, and Land are freshmen under the marketing management program. Every month, they purchase a piece of Panda ballpen. The price of the ball pen is Php9.50.According to a recent survey, 45% of the marketing freshmen have the samepurchasing behavior as Alice, Wonder, and Land. Another 30% also purchase Panda ballpens regularly at the same price; however, they purchase once every 2 weeks. There are approximately 280 freshmen under the marketing management program. Assuming that the behavior is consistent throughout their 4-year stay in the program, what is the approximate projected revenue that can be generated from the marketing freshmen for the entire duration of their stay in the program?
Digital Controis, Inc. (DCI), manufactures two models of a radar gun used by police to monitor the speed of automobiles. Model A has an accuracy of plus or minus 1 mile per hour, whereas the smaller model B has an accuracy of plus or minus 3 miles per hour. For the next week, the company has orders for 100 units of model A and 150 units of model B. Although DCI purchases all the electronic components used in both models, the plastic cases for both models are manufactured at a DCI plant in Newark, New Jersey. Each model A case requires 4 minutes of injection-molding time and 6 minutes of assembly time. Each model B case requires 3 minutes of injection-molding time and 8 minutes of assembly time. For next week, the Newark plant has 600 minutes of injection-molding time avallable and 1,080 minutes of assembly time availab The manufacturing cost is $10 per case for model A and $6 per case for model B. Depending upon demand and the time avalable at the Newark plant, DCI occasionally…
GreenLawns provides a lawn fertilizer and weed control service. The company is adding a special aeration treatment as a low-cost extra service option, which it hopes will help attract new customers. Management is planning to promote this new service in two media: radio and direct-mail advertising. A media budget of $2,500 is available for this promotional campaign. Based on past experience in promoting its other services, GreenLawns obtained the following estimate of the relationship between sales and the amount spent on promotion in these two media. S = −2R2 − 10M2 − 8RM + 18R + 34M where S = total sales in thousands of dollars R = thousands of dollars spent on radio advertising M = thousands of dollars spent on direct-mail advertising. GreenLawns would like to develop a promotional strategy that will lead to maximum sales subject to the restriction provided by the media budget. (a) What is the value of sales (in dollars) if $1,500 is spent on radio advertising and $1,000 is…
Mark Ewing has decided to enter contract with uber service provider in his area. The driver offers a car variety of mileage or distance to be travelled to him. All contracts were to be signed for three years. The first option has a monthly rent of P3,000, with a total mileage allowance of 36,000 kilometers (an average of 12,000 kilometers per year) and a cost of P35 per kilometer for any kilometers over 36,000. The following table summarizes each of the Uber Service Contract offered to him: 3-Year Contract Monthly Cost Mileage Allowance Cost Per Excess Kilometer Option A P3,000 30,000 P 35 Option B P3,500 45,000 P 25 Option C P4,000 54,000 P 15 Mark has estimated that, during the 3 years of the agreement, there is a 40% chance he will drive an average of 12,000 kilometers per year, a 30% chance he will drive an average of 15,000 miles per year, and a 30% chance that he will drive 18,000 miles per year. In evaluating the options, Mark would…
The Fish House (TFH) in Norfolk, Virginia, sells fresh fish and seafood. TFH receives daily shipments of farm-raised trout from a nearby supplier. Each trout costs $2.45 and is sold for $3.95. To maintain its reputation for freshness, at the end of the day TFH sells any leftover trout to a local pet food manufacturer for $1.25 each. The owner of TFH wants to determine how many trout to order each day. Historically, the daily demand for trout is: Demand 10 11 12 13 14 15 16 17 18 19 20 Probability 0.02 0.06 0.09 0.11 0.13 0.15 0.18 0.11 0.07 0.05 0.03 a. Construct a payoff matrix for this problem. b. How much should the owner of TFH be willing to pay to obtain a demand forecast that is 100% accurate? give a clear explanation for (b)
Janice Brown is employed by Starport Hardware Limited as a store clerk. One day she was inthe store arranging some items on a top shelf, the ladder she was standing on collapsed and shesuffered a broken arm and leg. The doctor told her that she had to a major surgery and it wouldtake approximately three months for her to heal enough to return to work. She is very concernedabout how she would pay her medical and recurring bills during this period. Her colleaguevisited her a week after the accident and told her about workers compensation. She is unsureabout the concepts and seeks your help to answer certain questions. A. Explain the concept ‘workers compensation’ B. Discuss the main objectives of workers compensation.C. Explain to Janice how workers compensation can assist her.D. Self-insurance is connected to workers compensation. State what isself -insurance and outline three advantages of it.
The Northwoods General Store The Northwoods General Store in Vermont sells various outdoor clothing items and equipment and several food products at its modern but rustic-looking retail store. Its food products include salmon and maple syrup. The store also runs a lucrative catalog operation. One of its most popular products is maple syrup, sold in metal half-gallon cans with a picture of the store on the front. Maple syrup was one of the first products the store produced and sold, and it continues to do so. Setting up the syrup-making equipment to produce a batch of syrup costs $450. Storing the syrup for sales throughout the year is tricky because the syrup must be kept in a temperature-controlled facility. The annual cost of carrying a gallon of syrup is $15. Based on past sales data, the store has forecasted demand of 7,500 gallons of maple syrup for the coming year. The store can produce approximately 100 gallons of syrup per day during the maple syrup season, from February…
Beagle Clothiers uses a weighted score for the evaluation and selection of its suppliers of trendy fashion garments. Each supplier is rated on a 10-point scale (10 = highest) for four different criteria: price, quality, delivery, and flexibility (to accommodate changes in quantity and timing). Because of the volatility of the business in which Beagle operates, flexibility is given twice the weight of each of the other three criteria, which are equally weighted (the sum of the four weights equals 1). The table shows the scores for three potential suppliers for the four performance criteria. 9 Rating Supplier A Supplier B Supplier C 8 5 Criteria 1. Price 2. Quality 3. Delivery 8 9 6 5 6 8 4. Flexibility 7 9 6 Based on the highest weighted score, which supplier should be selected? Supplier should be selected, with a total weighted score of. (Enter your response rounded to one decimal place.)