Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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In global sourcing, a tariff is an official list or
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- Recently, Abercrombie & Fitch (A&F) began shifting a large portion of its Asian deliveries to the U.S. from air freight to slower but cheaper ocean freight. Shipping costs have been cut dramatically, but shipment times have gone from days to weeks. In addition to having less control over inventory and being less responsive to fashion changes, the holding costs have risen for the goods in transport. Meanwhile, Central America might offer an inexpensive manufacturing alternative that could reduce shipping time through the Panama Canal to, say, 6 days, compared to, say, 30 days from Asia. Suppose that A&F uses an annual holding rate 30%. Suppose further that the product costs $23 to produce in Asia. Assume that the transportation cost via ocean linear would be approximately the same whether coming from Asia or Central America. a) What is the product cost plus holding cost per unit from Asia? The product cost plus holding cost per unit from Asia is $ three decimal places). (round your…arrow_forwardClaudia Pragram Technologies, Inc., has narrowed its choice of outsourcing provider to two firms located in different countries. Pragram wants to decide which one of the two countries is the better choice, based on risk-avoidance criteria. She has polled her executives and established four criteria. The resulting ratings for the two countries are presented in the table below, where 1 is a lower risk and 3 is a higher risk. The executives have determined four criteria weightings: Price, with a weight of 0.1; Nearness, with 0.6; Technology, with 0.2; and History, with 0.1. a) Using the factor-rating method, which country would you select? b) Double each of the weights used in part (a) (to 0.2, 1.2, 0.4, and 0.2, respectively). What effect does this have on your answer? Why?arrow_forwardplease answer correctly in a detailed manner.arrow_forward
- Organizations can have multiple layers of first- and second-tier suppliers. Explain the advantages that organizations gain by having multiple layers of suppliers. Describe any disadvantages that can be brought to organizations by having multiple layers of suppliers.arrow_forwardComment on the limitations encountered along the supply chain of natural gas and liquified natural gas (LNG) and their effect on the prices, and the present and future trading trends for these commodities.arrow_forwardMITIGATING SUPPLYCHAIN RISKS TO IMPROVE COMPETITIVENESS With the increasing sophistication of supply chains, organizations are finding it difficult to attain a constant flow of supplies across all network and turning to some form of collaboration across different tiers. Sourcing has become the order of the day despite the logistical challenges involved. The outbreak of the war between Israel and Palestine, Ukraine and Russia has accelerated widespread increases in global commodity prices making it difficult for purchasers to attain their goals. The wars represent a unique shock that has a major impact on production, distribution and availability of materials. In order to ensure continued supply and/or delivery supply chains need to effectively coordinate and consolidate supply bases across different actors to mitigate shortages. Q.1. Basing on your own assessment of the current situation globally, would you recommend organizations and/or supply chains to undertake supplier…arrow_forward
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