Develop a Supplier Positioning Matrix and place the appropriate purchasing categories on it.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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**Main Street Cinema Financial Analysis**

Main Street Cinema is a single-screen movie theater located in a residential area. It operates as a licensed exhibitor for Mega Pictures Distribution Company, receiving all its movies from this corporation and paying rental fees according to the license agreement. Aside from this business relationship, Main Street Cinema is an independent small business with significant annual expenditures on various supplies.

Last year’s spending analysis included the following categories and costs:

- **Daily Janitorial Services**: $83,000
- **Upholstery and Carpet Cleaning**: $28,000
- **Soft Drinks**: $25,000
- **Popcorn and Candy**: $33,000
- **Toilet Paper & Liquid Soap (Bathroom)**: $750

This data highlights the theater's operational expenses and the diverse range of products they purchase on a yearly basis.
Transcribed Image Text:**Main Street Cinema Financial Analysis** Main Street Cinema is a single-screen movie theater located in a residential area. It operates as a licensed exhibitor for Mega Pictures Distribution Company, receiving all its movies from this corporation and paying rental fees according to the license agreement. Aside from this business relationship, Main Street Cinema is an independent small business with significant annual expenditures on various supplies. Last year’s spending analysis included the following categories and costs: - **Daily Janitorial Services**: $83,000 - **Upholstery and Carpet Cleaning**: $28,000 - **Soft Drinks**: $25,000 - **Popcorn and Candy**: $33,000 - **Toilet Paper & Liquid Soap (Bathroom)**: $750 This data highlights the theater's operational expenses and the diverse range of products they purchase on a yearly basis.
The text discusses two critical contract services for Main Street Cinema: 

"Upholstery and carpet cleaning, while only purchased four times a year, is particularly worrisome to Main Street Cinema, because the supplier of this service must work overnight to complete the cleaning, and any problems during that work can force Main Street Cinema into closing the following business day and losing all sales revenue."

The cinema must trust external personnel for these essential services. The timing and quality of upholstery and carpet cleaning are crucial, as issues can lead to significant business disruptions.

Additionally, the text prompts the development of a "Supplier Positioning Matrix," suggesting categorizing suppliers based on purchasing criteria.

There are no graphs or diagrams provided in the text.
Transcribed Image Text:The text discusses two critical contract services for Main Street Cinema: "Upholstery and carpet cleaning, while only purchased four times a year, is particularly worrisome to Main Street Cinema, because the supplier of this service must work overnight to complete the cleaning, and any problems during that work can force Main Street Cinema into closing the following business day and losing all sales revenue." The cinema must trust external personnel for these essential services. The timing and quality of upholstery and carpet cleaning are crucial, as issues can lead to significant business disruptions. Additionally, the text prompts the development of a "Supplier Positioning Matrix," suggesting categorizing suppliers based on purchasing criteria. There are no graphs or diagrams provided in the text.
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