CASE: The manager of a community pharmacy is reordering his stock of generic atenolol when he notes in the catalogue that a new manufacturer is also now producing and packaging atenolol at what appear to be competitive prices. At present he orders, on average, three 250-count bottles per month at Php 120 per bottle from Company A. However, Company B is offering one bottle of 1,000-count atenolol for Php 175. Detail the type of analysis the pharmacist might conduct to determine which option would be least costly. Assuming the pharmacy dispenses 10,000 atenolol pills over the course of one year, from which company should the pharmacist order if financial considerations are the only consideration? What chronic ailment is atenolol used for? What is the aim of this case?

CASE: The manager of a community pharmacy is reordering his stock of generic atenolol when he notes in the catalogue that a new manufacturer is also now producing and packaging atenolol at what appear to be competitive prices. At present he orders, on average, three 250-count bottles per month at Php 120 per bottle from Company A. However, Company B is offering one bottle of 1,000-count atenolol for Php 175. Detail the type of analysis the pharmacist might conduct to determine which option would be least costly. Assuming the pharmacy dispenses 10,000 atenolol pills over the course of one year, from which company should the pharmacist order if financial considerations are the only consideration? What chronic ailment is atenolol used for? What is the aim of this case?

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?
explain the Kraljic supply Matrix of McDonald's with a diagram
Retailers Warehouse (RW) is an independent supplier of household items todepartment stores. RW attempts to stock enough items for a 98 percent serviceprobability.A stainless steel knife set is one item it stocks. Demand (2,400 sets peryear) is relatively stable over the entire year. Whenever new stock isordered, a buyer must assure that numbers are correct for stock on handand then phone in a new order. The total cost involved to place an order isabout $5. RW figures that holding inventory in stock and paying forinterest on borrowed capital, insurance, and so on adds up to about $4holding cost per unit per year.Analysis of the past data shows that the standard deviation of demandfrom retailers is about four units per day for a 365-day year. Lead time toget the order is seven days.a. What is the economic order quantity?b. What is the reorder point?
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Ikagami Retail receives shipments of a particular product from Booker Store and PaulEnterprises. Let x = number of units of product received from Booker Store y = number of units of products received from Paul Enterprises Requirement: a. Write an expression for the total number of units of products received by Ikagami Retail.b. Shipments from Booker Store cost P20 per unit, and shipments from Paul Ent cost P25 per unit. Develop an objective function representing the total cost of shipments to Ikagami.c. Assuming a monthly demand at Ikagami is 5,000 units, develop a constraint that requires 5,000 units to be shipped to Ikagami.d. No more than 4,000 units can be shipped from Booker, and no more than 3,000 from Paul. Develop constraints to model this situation.e. Of course, negative amounts cannot be shipped. Combine the objective function and constraints developed to state a mathematical model for satisfying the demand at Ikagami at minimum cost.
At a recent manufacturing workshop, XYZ, Incorporated explained that demand for disposable masks increase rapidly in March 2020 when quarantine mandates first took effect. At the time, retailers could only place a single order to cover demands through the end of the summer. A certain retailer purchased disposal masks from a supplier at a cost of $20 per unit and sold them for $30 per unit. By the end of summer, demand for masks subsided considerably and all masks that weren't sold during the summer could be sold at a discounted price of $18 per unit. The retailer estimated that demand between March and August would be Normally distributed with mu = 10,000 and sigma = 1525 units With, supply chains becoming more stable since March 2020, the retailer is currently in the process of establishing a contract with a disposable mask supplier. The supplier has agreed to sell masks to the retailer for $18 per unit and will make deliveries any time the supplier places an order for a cost of $100…
Ikagami Retail receives shipments of a particular product from Booker Store and PaulEnterprises. Let x = number of units of product received from Booker Store y = number of units of products received from Paul Enterprises Requirement: a. Write an expression for the total number of units of products received by Ikagami Retail.b. Shipments from Booker Store cost P20 per unit, and shipments from Paul Ent cost P25 per unit. Develop an objective function representing the total cost of shipments to Ikagami.c. Assuming a monthly demand at Ikagami is 5,000 units, develop a constraint that requires5,000 units to be shipped to Ikagami.
This mcq Question from INTRODUCTION TO BUSINESS ADMINISTRATION course.
Specialty Toys, Inc., sells a variety of new and innovative children's toys. As with other products, Specialty faces the decision of how may Weather Teddy units to order for coming holiday season. Members of the management team suggested order quantities of 15,000, 18,000, 24,000, 28,000 units. The wide range of order quantities suggested indicates considerable disagreement concerning the market potential. The product management team ask you for analysis of the stock-out probabilities for various order quantities, an estimate of the product potential, and to help make an order quantity recommendation. Specialty expects to sell Weather Teddy for $24 based on cost of $16 per unit. If inventory remains after the holiday season, Specialty will sell all surplus inventory for $5 per unit. After reviewing the sales history of similar products, Specialty%u2019s sales forecaster predicted and expected demand of 20,000 units with a .95 probability that demand would be between 10,000 units and…
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