Freight Cost/1,000 Carrying Lead Time Administrative Demand Level Demand Price/unit Cost/unit (days) costs Local Supplier Low 50,000 $1.25 $20.00 $0.10 1 $15,000.00 Moderate 100,000 $1.25 $20.00 $0.10 $15,000.00 High 250,000 $1.25 $20.00 $0.10 $15,000.00 National Supplier Low 50,000 $1.35 $120.00 $0.10 15 $12,500.00 Moderate 100,000 $1.25 $120.00 $0.10 15 $12,500.00 High 250,000 $1.00 $120.00 $0.10 15 $12,500.00 Freight Cost/1,000 Carrying Lead Time Administrative Demand Level Demand Price/unit Cost/unit (days) costs Local Supplier Low 50,000 $1.25 $20.00 $0.10 1 $15,000.00 Moderate 100,000 $1.25 $20.00 $0.10 $15,000.00 High 250,000 $1.25 $20.00 $0.10 $15,000.00 National Supplier Low 50,000 $1.35 $120.00 $0.10 15 $12,500.00 Moderate 100,000 $1.25 $120.00 $0.10 15 $12,500.00 High 250,000 $1.00 $120.00 $0.10 15 $12,500.00
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Adelie Enterprises has decided to drop
the international supplier from consideration. Furthermore,
Adelie has decided to order boxes in lots of 10,000 to op-
timize the use of available storage space at its distribution
facility. To more completely consider the cost/volume trad-
eoffs associated with selecting the local or national supplier,
management has collected the following data. Adelie services
its customers 250 days per year.
a. On purely a total cost basis, which supplier should be
selected if there is low demand for Adelie’s new service;
which supplier should be selected under moderate
demand assumptions; and which supplier should be
selected under high demand?
b. Which supplier achieves the lowest expected cost if
the probability of low demand is 35 percent, moderate
demand is 45 percent, and high demand is 20 percent?
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