The Ngo Farms produces its own natural organic fertilizer, which it sells mostly to the gardeners and homeowners. The annual demand for fertilizer is 270,000 pounds. The company is able to produce 305,000 pounds annually. The cost to transport the fertilizer from the plan to the nursery is $620 per load. The annual carrying load cost is $0.12 per pound. If Ngo Farms in Problem No. 5 can increase production capacity to 360,000 pounds per year, what will be the total inventory cost?

The Ngo Farms produces its own natural organic fertilizer, which it sells mostly to the gardeners and homeowners. The annual demand for fertilizer is 270,000 pounds. The company is able to produce 305,000 pounds annually. The cost to transport the fertilizer from the plan to the nursery is $620 per load. The annual carrying load cost is $0.12 per pound. If Ngo Farms in Problem No. 5 can increase production capacity to 360,000 pounds per year, what will be the total inventory cost?

Name: 5. The Ngo Farms produces its own natural organic fertilizer, which it
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Description: 5. The Ngo Farms produces its own natural organic fertilizer, which it sells mostly to the gardeners and homeowners. The annual demand for fertilizer is 270,000 pounds. The company is able to produce 305,000 pounds annually. The cost to transport the

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?
5. The Ngo Farms produces its own natural organic fertilizer, which it sells mostly to the gardeners and homeowners. The annual demand for fertilizer is 270,000 pounds. The company is able to produce 305,000 pounds annually. The cost to transport the fertilizer from the plan to the nursery is $620 per load. The annual carrying load cost is $0.12 per pound. In reference to Problem No. 5, compute the total minimum cost.
13.2 A company manufactures component parts for machine tools in North America and ships them to Southeast Asia for assembly and sale in the local market. The components are shipped by sea, transit time averages 6 weeks, and the shipping costs $2700 per shipment. The company is considering moving the parts by air at an estimated cost of $7500; the shipment taking 2 days to get there. If inventory in transit for the shipment costs $125 per day, should they ship by air?
Acadia Logistics anticipates that it will need more distribution center space to accommodate what it believes will be a significant increase in demand for its final-mile services. Acadia could either lease public warehouse space to cover all levels of demand or construct its own distribution center to meet a specified level of demand, and then use public warehousing to cover the rest. The yearly cost of building and operating its own facility, including the amortized cost of construction, is $15.00 per square foot. The yearly cost of leasing public warehouse space is $24.50 per square foot. E Click the icon to view the expected demand requirements. a. The expected value of leasing public warehouse space as required by demand is $ 10290000 . (Enter your response as a whole number.) b. The expected value of building a 230,000-square-foot distribution center and leasing public warehouse space as required if demand exceeds the need for 230,000 square feet of space is $ (Enter your response…
Acadia Logistics anticipates that it will need more distribution center space to accommodate what it believes will be a significant increase in demand for its final-mile services. Acadia could either lease public warehouse space to cover all levels of demand or construct its own distribution center to meet a specified level of demand, and then use public warehousing to cover the rest. The yearly cost of building and operating its own facility, including the amortized cost of construction, is $15.00 per square foot. The yearly cost of leasing public warehouse space is $24.50 per square foot. E Click the icon to view the expected demand requirements. a. The expected value of leasing public warehouse space as required by demand is S (Enter your response as a whole number.) More Info Requirements (in sq. ft) Probability 230,000 430,000 630,000 830,000 0.35 0.4 0.2 0.05 Print Done
Explain the operational planning needed in this freight operation. Include the transport routes, scheduling, and the types of multi-modal transport required, between the production facility in Prague to the warehouse in Hidd. 2. Explain the rules and regulations the company must meet in transporting the goods, including a suitable Incoterm, in this freight operation. 3. An explanation of the costs involved in this freight operation and how you would calculate a suitable charge-out rate (without using numbers).
1. The bottleneck operations for manufacturing the chairs is cutting the woods. It is know that it takes 10 minutes to cutting the woods to make one chair. The company operates 8 hours per day, 20 days per month, what is the monthly capacity of the manufacturing process? 2. A company uses transportation mode analysis to decide whether to choose slower shipping or faster shipping from Portland to Los Angeles using ship connectors. The value of the connectors is $1,200. The holding cost is 10% per year. And the company knows one carrier is 1 day faster but $15 more expensive. Please help the company to make the decision.: whether to choose slower shipping or faster shipping.
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
Give examples of the term "Carrying Capacity" and how it's used.
Transworld Deliveries is expanding its contract home delivery service into the Northeastern United States. The company anticipates that to accommodate this expansion it will need between 25 and 40 staffed delivery vehicles. Transworld is currently moving 25 of its own vehicles, with drivers, into the Northeast. The daily cost of operating its own fleet is $820 per vehicle, while the daily cost of leasing a vehicle and driver is expected to be $1,200 per vehicle. The expected demand requirements follow: Requirements (in vehicles) 25 30 35 40 Probability 0.25 0.25 0.25 0.25 Using an expected value approach, should Transworld purchase additional vehicles and hire additional drivers? If so, how many would you recommend?
After applying the NWC Rule for the initial tableau of the given transportation model, evaluate the vacant cells. What is the cell which has the most negative evaluation value and what is the cell evaluation value? DESTINATION SOURCE DEMAND X Y N OX-R; 1 OY-S; -1 OX-S; -1 OY-S; -2 P 75 8 12 EI 11 Q 80 5 8 11 R 120 7 10 10 S 50 11 13 14 SUPPLY 100 125 100 325
DJA Trucking Co. owns several truck used in hauling crushed stones from three different plants to three road projects in Pampanga. The contractor in charge of the project gives the company the ff. Projec A B C F/T X Y Z Requirement per week 150 175 140 A B P100 P200 150 175 200 500 C P75 225 125 Plants X Y Z Available per week 145 160 160 Compute for the optimal hauling schedule and the total transportation costs. (Use stepping stone and Least Cost Method (minimum entry method))