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Please help with 10-7, 10-8, and 10-19 please explain and give examples

Please help with 10-7, 10-8, and 10-19 please explain and give examples

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
Chapter2: The Purchasing Process
Section: Chapter Questions
Problem 1GPE
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Please help with 10-7, 10-8, and 10-19 please explain and give examples

10-16. "Customers don't cost money; they bring in revenue." Do you agree? why 10-17. Consider the Business Application feature "Technology, Data Analysis, Customer Profitability, and Cost of Quality." What does it mean to "fire a customer"? Why would a firm want to do this? How would a firm do this? 10-18. "I have to pay for capacity whether it is used or not. Therefore, excess or idle capacity really doesn't cost me anything." Do you agree? Why? 10-19. You are working at a hotel in a resort location. The manager says that the hotel must raise the rates in the winter when it has fewer tourists because the cost per room is much higher. How would you respond? 10-20. Many if not most schools in the United States have large excess capacity cost because they are underutilized in the summer months. The dean at the local business school is
Transcribed Image Text:10-16. "Customers don't cost money; they bring in revenue." Do you agree? why 10-17. Consider the Business Application feature "Technology, Data Analysis, Customer Profitability, and Cost of Quality." What does it mean to "fire a customer"? Why would a firm want to do this? How would a firm do this? 10-18. "I have to pay for capacity whether it is used or not. Therefore, excess or idle capacity really doesn't cost me anything." Do you agree? Why? 10-19. You are working at a hotel in a resort location. The manager says that the hotel must raise the rates in the winter when it has fewer tourists because the cost per room is much higher. How would you respond? 10-20. Many if not most schools in the United States have large excess capacity cost because they are underutilized in the summer months. The dean at the local business school is
when suppliers ane Hirm's costs? 10-5. How is computing the cost of customers the same as computing the cost of products? How is the computation different? 10-6. What is the difference between resources supplied and resources consumed? Why is the difference important? 10-7. Why does it matter how capacity costs are assigned to products? 10-8. Under what conditions should the cost of excess capacity be assigned to products tomers? When should excess capacity costs not be assigned to products or customers? 10-9. In what ways does quality affect cost? 10-10. What are the four categories in a cost of quality system? Give an example of each. or cus-
Transcribed Image Text:when suppliers ane Hirm's costs? 10-5. How is computing the cost of customers the same as computing the cost of products? How is the computation different? 10-6. What is the difference between resources supplied and resources consumed? Why is the difference important? 10-7. Why does it matter how capacity costs are assigned to products? 10-8. Under what conditions should the cost of excess capacity be assigned to products tomers? When should excess capacity costs not be assigned to products or customers? 10-9. In what ways does quality affect cost? 10-10. What are the four categories in a cost of quality system? Give an example of each. or cus-
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