Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Question
Chapter 14, Problem 1VC
Summary Introduction
Case Summary: This case deals with problems faced in sourcing. It describes about the sourcing strategy followed by Starwood.
Interpretation:The type of orientation required to be maintained with the suppliers to supply the items.
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Describe the supply chain for your university or college.Who are the suppliers, producers, and distributors in thissupply chain? Are there different supplier tiers? Howwould you evaluate this supply chain? Does inventory evenexist, and if it does, what form does it take?
One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently being assembled at your plant. The supplier has bid $0.10 per part, given a forecast you provided of 200,000 parts in year 1; 300,000 in year 2; and 500,000 in year 3. Shipping and handling of parts from the supplier’s factory is estimated at $0.01 per unit. Additional inventory handling charges should amount to $0.005 per unit. Finally, administrative costs are estimated at $20 per month.
Although your plant is able to continue producing the part, the plant would need to invest in another molding machine, which would cost $10,000. Direct materials can be purchased for $0.05 per unit. Direct labor is estimated at $0.03 per unit plus a 50 percent surcharge for benefits; indirect labor is estimated at $0.011 per unit plus 50 percent benefits. Up-front engineering and design costs will amount to $30,000. Finally, management has insisted that overhead be allocated if the parts are made in-house…
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Chapter 14 Solutions
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - Prob. 1PCh. 14 - Eight Flags operates several amusement parks in...Ch. 14 - Prob. 3PCh. 14 - Beagle Clothiers uses a weighted score for the...Ch. 14 - Prob. 5P
Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - Prob. 8PCh. 14 - Prob. 9PCh. 14 - Prob. 10PCh. 14 - Acadia Logistics anticipates that it will need...Ch. 14 - Prob. 12PCh. 14 - Prob. 13PCh. 14 - Prob. 1VCCh. 14 - Prob. 2VCCh. 14 - Prob. 3VCCh. 14 - Prob. 4VCCh. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3C
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