Answered: One of the key aspects of PT Logistra's…

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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Question

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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