1.The company has three months (April. May and June) for subtracting the units for both NOOR-Company's and AL-SALAM company2. The company should first satisfy AlNOOR company demand then AL-SALAM company demand.3. Both production units will work in producing the units4. Production Unit B will be busy during April5. The company can work up to 24 hours per day6. The profit should be at least $1500Do you think that XYZ-Company should accept or reject the offer? The XYZ-company has received offers for subcontracting from NOOR-Company's and AL-SALAM company. Table (1) shows information on these two offers:NOOR CompanyALSALAM CompanyNo. Units2030Period60 Days40 DaysPrice$100$130Fine$15$20Table (2) show information about the two Production Units of XYZ-Company (in hours)Production unit AProduction Unit BUnitsLabor 1Labor 2Labor 3Labor 4Labor 5LaborLabor 3Labor 4Labor 5Units10110992094Labor 2107089789010096901208681982073817383839411730647467787672309278901138984817872696240596861684089688810950556356635085638510561604954515652476080567910198959170464948757051708090100|51748040434045456941362990323940654064371002431336033588730NOORALSALAMCompany CompanyProduction cost$60$90Fixed cost$500

The interpretation of the second table needs more clarification. Case-1 It is a series of work where…

he company has three months (April. May and June) for subtracting the units for both NOOR-Company's and AL-SALAM company 2. The company should first satisfy AlNOOR company demand then AL-SALAM company demand. 3. Both production units will work in producing the units 4. Production Unit B will be busy during April 5. The company can work up to 24 hours per day 6. The profit should be at least $1500 Do you think that XYZ-Company should accept or reject the offer

he company has three months (April. May and June) for subtracting the units for both NOOR-Company's and AL-SALAM company 2. The company should first satisfy AlNOOR company demand then AL-SALAM company demand. 3. Both production units will work in producing the units 4. Production Unit B will be busy during April 5. The company can work up to 24 hours per day 6. The profit should be at least $1500 Do you think that XYZ-Company should accept or reject the offer

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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