1. What is the economic order quantity for BBE in units? In pounds? 4.What is the total cost for using air carrier transportation?
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1. What is the economic order quantity for BBE in units? In pounds?
4.What is the total cost for using air carrier transportation?
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- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?In your own words, describe EDI and how it works in a logistics environment.
- Tsaltz Inc. of Hamilton, Ontario, is a distributor of starwars themed dog tags to pet store retailers. Its market area spans most of Ontario. The dog tags are made in Calgary, Alberta, and currently shipped to Ontario via motor carrier transportation. Easton, Director of Logistics, has asked his staff to evaluate using Rail car carrier service to ship the dog tags. He obtained the following data for you to make your recommendation which carrier is best for the company. Data: R= Annual rate of demand 5000 cases V= Value of cost of 1 unit of inventory $ 48.00 per case W= Carrying cost per dollar value of inventory per year 15% inventory carrying cost A= Cost of placing an order $ 37.50 cost per order In-transit inventory carry cost 9% Transit time using motor carrier (parcel ground) 2 days Transit time using Rail car carrier 1 days Motor carrier rate $ 0.66 per cwt (100 lbs) Rail car carrier rate $1.25 per cwt (100 lbs) Unit weight 25 pounds EOQ units 228.00 units EOQ pounts…Describe the relationship and importance of inventory to logistics ?Wagner Company supplies electric motors to ATK Electronic on adelivered price basis. Wagner has responsibility for providingtransportation. The traffic manager has three transportation servicechoices for delivery: rail, piggyback, and truck.ATK purchases 50,000 units per year at a delivered contract price of$500 per unit. Inventory holding cost for both companies is 30percent per year. Calculate total related costs for each mode oftransportation. Transportation Mode Transit Time,Days Fix Rate, $/delivery Variable rate, $/Unit Shipment size, units 1)Rail 16 10.000 25.00 10.000 2)Piggyback 10 15.000 40.00 8.000 3)Truck-Truck load 4 1.000 75.00 5.000 4)Truck-Less than truck load 4 500 85.00 1.000
- Sonnie’s Gourmet Sandwich Café, a popular new fast casual restaurant, serves high-quality, made-to-order sandwiches. Located in a local outdoor shopping center, parking in front of Sonnie’s is limited. However, there are many parking spaces available behind the café within a five-minute walk. The café has an inviting, bright, and open interior with deli cases, blackboards listing specials, and oak tables and chairs. The café’s popularity at lunch is a concern for Sonnie. During the prime lunch time, between 11:30 a.m. and 1:30 p.m. Monday through Friday, the waiting line is often out the door. On average Sonnie would like to serve 40 customers per hour at lunch. Working professionals, who typically spend more than other customers at lunch, are on busy schedules and do not have time to wait in line. Sonnie estimates that currently some customers go to other restaurants because of the line. The menu at Sonnie’s includes nine standard sandwiches such as roast beef, pastrami and rye, and a…A research Investigating the Obstacles of Reverse Logistics in the E-commerce Industry of AppleCost tradeoff exists between transportation and inventory Select one: a. True b. False
- A- Determine the transportation cost for a parcel - with size 230 cm X 180 cm X 300 cm - and weight 7654 Kg - Rate quoted is $93 per tone / per cubic meter On which base the carrier is going to offer freight cost, and whyFAS (Free alongside Ship) and FOB (Free on Board) are rules for which kind of transport?What are the challenges with inventory management in reverse logistics?