Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Case: Electronic Personal Heart Rate Monitors Supply Chain Management Game 145
(c) What is the indifference point for the two
companies. Doris Roberts from SBARG has offered
to do the accounts receivable for Cal's Carpentry at a
fixed cost of $75,000 per year plus $30 per account re-
ceivable. Next year, Cal expects to have 2000 accounts
alternatives?
(d) If HFC estimates it will place 1600 purchase
orders next year, should it use VB?
(e) What additional factors should be considered by
receivable.
HFC?
(a) Calculate the cost for Cal's Carpentry to continue
doing accounts receivable in-house.
(b) Calculate the cost for Cal's Carpentry to use
6. Cal's Carpentry is considering outsourcing its accounts
receivable function. Currently, Cal employs two full-time
clerks and one part-time clerk to manage accounts
receivable. Each full-time clerk has an annual salary
of $36,000 plus fringe benefits costing 30 percent of
the salary. The part-time clerk makes $18,000 per year
but has no fringe benefits. Total salary plus fringe cost
is $111,600. Cal estimates that each account receiv-
able incurs a $10 variable cost. The Small Business
SBARG to handle the accounts receivable.
(c) If the fixed annual cost offered by SBARG is non-
negotiable but it is willing to negotiate the variable
cost, what variable cost from SBARG would make
Cal indifferent to the two options?
(d) What other alternatives might Cal consider in terms
of his current staffing for accounts receivable?
(e) What additional criteria should Cal consider
before outsourcing the accounts receivable?
Accounts Receivables Group (SBARG) specializes in
handling accounts receivable for small- to medium-size
ase: Electronic Personal Heart Rate Monitors Supply
Chain Management Game
expand button
Transcribed Image Text:Case: Electronic Personal Heart Rate Monitors Supply Chain Management Game 145 (c) What is the indifference point for the two companies. Doris Roberts from SBARG has offered to do the accounts receivable for Cal's Carpentry at a fixed cost of $75,000 per year plus $30 per account re- ceivable. Next year, Cal expects to have 2000 accounts alternatives? (d) If HFC estimates it will place 1600 purchase orders next year, should it use VB? (e) What additional factors should be considered by receivable. HFC? (a) Calculate the cost for Cal's Carpentry to continue doing accounts receivable in-house. (b) Calculate the cost for Cal's Carpentry to use 6. Cal's Carpentry is considering outsourcing its accounts receivable function. Currently, Cal employs two full-time clerks and one part-time clerk to manage accounts receivable. Each full-time clerk has an annual salary of $36,000 plus fringe benefits costing 30 percent of the salary. The part-time clerk makes $18,000 per year but has no fringe benefits. Total salary plus fringe cost is $111,600. Cal estimates that each account receiv- able incurs a $10 variable cost. The Small Business SBARG to handle the accounts receivable. (c) If the fixed annual cost offered by SBARG is non- negotiable but it is willing to negotiate the variable cost, what variable cost from SBARG would make Cal indifferent to the two options? (d) What other alternatives might Cal consider in terms of his current staffing for accounts receivable? (e) What additional criteria should Cal consider before outsourcing the accounts receivable? Accounts Receivables Group (SBARG) specializes in handling accounts receivable for small- to medium-size ase: Electronic Personal Heart Rate Monitors Supply Chain Management Game
Case: Electronic Personal Heart Rate Monitors Supply Chain Management Game • 145
companies. Doris Roberts from SBARG has offered
to do the accounts receivable for Cal's Carpentry at a
fixed cost of $75,000 per year plus $30 per account re-
ceivable. Next year, Cal expects to have 2000 accounts
(c) What is the indifference point for the two
alternatives?
(d) If HFC estimates it will place 1600 purchase
orders next year, should it use VB?
(e) What additional factors should be considered by
receivable.
(a) Calculate the cost for Cal's Carpentry to continue
doing accounts receivable in-house.
(b) Calculate the cost for Cal's Carpentry to use
HFC?
6. Cal's Carpentry is considering outsourcing its accounts
receivable function. Currently, Cal employs two full-time
clerks and one part-time clerk to manage accounts
receivable. Each full-time clerk has an annual salary
of $36,000 plus fringe benefits costing 30 percent of
the salary. The part-time clerk makes $18,000 per year
but has no fringe benefits. Total salary plus fringe cost
is $111,600. Cal estimates that each account receiv-
able incurs a $10 variable cost. The Small Business
Accounts Receivables Group (SBARG) specializes in
handling accounts receivable for small- to medium-size
SBARG to handle the accoounts receivable.
(c) If the fixed annual cost offered by SBARG is non-
negotiable but it is willing to negotiate the variable
cost, what variable cost from SBARG would make
Cal indifferent to the two options?
(d) What other alternatives might Cal consider in terms
of his current staffing for accounts receivable?
(e) What additional criteria should Cal consider
before outsourcing the accounts receivable?
Case: Electronic Personal Heart Rate Monitors Supply
Chain Management Game
In this supply chain game, retailers sell electronic heart
rate monitors to their customers and place replenish-
ment orders to their wholesaler. The wholesaler sells
Electronic heart
the heart rate monitors to the retailers and or
rate monitor
Factory (1)
monitor
expand button
Transcribed Image Text:Case: Electronic Personal Heart Rate Monitors Supply Chain Management Game • 145 companies. Doris Roberts from SBARG has offered to do the accounts receivable for Cal's Carpentry at a fixed cost of $75,000 per year plus $30 per account re- ceivable. Next year, Cal expects to have 2000 accounts (c) What is the indifference point for the two alternatives? (d) If HFC estimates it will place 1600 purchase orders next year, should it use VB? (e) What additional factors should be considered by receivable. (a) Calculate the cost for Cal's Carpentry to continue doing accounts receivable in-house. (b) Calculate the cost for Cal's Carpentry to use HFC? 6. Cal's Carpentry is considering outsourcing its accounts receivable function. Currently, Cal employs two full-time clerks and one part-time clerk to manage accounts receivable. Each full-time clerk has an annual salary of $36,000 plus fringe benefits costing 30 percent of the salary. The part-time clerk makes $18,000 per year but has no fringe benefits. Total salary plus fringe cost is $111,600. Cal estimates that each account receiv- able incurs a $10 variable cost. The Small Business Accounts Receivables Group (SBARG) specializes in handling accounts receivable for small- to medium-size SBARG to handle the accoounts receivable. (c) If the fixed annual cost offered by SBARG is non- negotiable but it is willing to negotiate the variable cost, what variable cost from SBARG would make Cal indifferent to the two options? (d) What other alternatives might Cal consider in terms of his current staffing for accounts receivable? (e) What additional criteria should Cal consider before outsourcing the accounts receivable? Case: Electronic Personal Heart Rate Monitors Supply Chain Management Game In this supply chain game, retailers sell electronic heart rate monitors to their customers and place replenish- ment orders to their wholesaler. The wholesaler sells Electronic heart the heart rate monitors to the retailers and or rate monitor Factory (1) monitor
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