Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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One of the key aspects of PT Logistra's operations is the selection of the right suppliers to ensure the availability of raw materials and necessary goods. The company is considering expanding its supplier network to guarantee the continuous supply of essential materials and products. Careful supplier selection is crucial to meet PT Logistra's quality standards and operational efficiency. The company has defined several criteria for supplier selection, including price and quality. Three potential suppliers (A, B, and C) have been identified.
Price Analysis (in thousands of dollar)
| Supplier | Product X | Product Y | Product Z |
| A | 100 | 110 | 120 |
| B | 95 | 105 | 115 |
| C | 110 | 115 | 125 |
Product Quality Analysis (scale 1-10)
| Supplier | Product X | Product Y | Product Z |
| A | 8 | 9 | 7 |
| B | 9 | 8 | 8 |
| C | 7 | 6 | 8 |
Determine:
a.Total Cost for each supplier
b.In your opinion, how is the Activity-Based Costing (ABC) approach used to measure logistics costs at PT Logistra?
c. Implications of increasing supply chain complexity on the role and responsibilities of logistics managers at PT Logistra in the future
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