Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 gear housings for a new off-road vehicle, Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow Annual contracted units Annual faxed cost Per unit variable cost General-Purpose Equipment (GPE) 75.000 $100,000 $16.00 Flexible Manufacturing System (FMS) 75,000 $225,000 $14.00 Dedicated Machine (DM) 75.000 $480,000 $13.75 Based on the total cost, the process that is best suited for the current contracted volume is Suppose the contracted volume changes to 275,000 gear housings. Based on the total cost, the process that is best suited for the new volume is Suppose the contracted volume changes to 375,000 gear housings. Based on the total cost, the process that is best suited for the new volume is

Borges Machine Shop, Inc., has a 1-year contract for the production of 75,000 gear housings for a new off-road vehicle, Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow Annual contracted units Annual faxed cost Per unit variable cost General-Purpose Equipment (GPE) 75.000 $100,000 $16.00 Flexible Manufacturing System (FMS) 75,000 $225,000 $14.00 Dedicated Machine (DM) 75.000 $480,000 $13.75 Based on the total cost, the process that is best suited for the current contracted volume is Suppose the contracted volume changes to 275,000 gear housings. Based on the total cost, the process that is best suited for the new volume is Suppose the contracted volume changes to 375,000 gear housings. Based on the total cost, the process that is best suited for the new volume is

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.3SD: Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling...

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Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?
Borges Machine Shop, Inc. has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle Owner Luis Borges hopes the contract will be extended and the volume increased next year Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM) The cost data follow Annual contracted units Annual fixed cost General Purpose Equipment (GPE) 200.000 $150.000 $15.00 Per unit variable cost The option GEE is best when the contracted volume is below units (enter your response as a whole number) Flexible Manufacturing System (FMS) 200,000 $250.000 $14.00 Dedicated Machine (DM) 200.000 $525,000 $13.00
Borges Machine Shop, Inc., has a 1-year contract for the production of 250,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow General-Purpose Equipment (GPE) 250,000 Annual contracted units Annual fixed cost $125,000 Per unit variable cost $18.00 The option GPE is best when the contracted volume is below Flexible Manufacturing System (FMS) 250,000 $250,000 $14.00 D Dedicated Machine (DM) 250,000 $480,000 $13.00 units (enter your response as a whole number)
Merrimac Manufacturing Company has always purchased acertain component part from a supplier on the East Coast for$50 per part. The supplier is reliable and has maintained thesame price structure for years. Recently, improvements in operations and reduced product demand have cleared up somecapacity in Merrimac’s own plant for producing componentparts. The particular part in question could be produced at$40 per part, with an annual fixed investment of $25,000.Currently, Merrimac needs 300 of these parts per year.a. Should Merrimac make or buy the component part?b. As another alternative, a new supplier located nearby isoffering volume discounts for new customers of $50per part for the first 100 parts ordered and $45 per partfor each additional unit ordered. Should Merrimacmake the component in-house, buy it from the newsupplier, or stick with the old supplier?c. Would your decision change if Merrimac’s annual demand increased to 2000 parts? increased to 5000 parts?d. Develop a set of…
Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: Flexible Manufacturing System (FMS) General-Purpose Equipment (GPE) 200,000 Annual contracted units Annual fixed cost $150,000 Per unit variable cost $18.00 The option GPE is best when the contracted volume is below units (enter your response as a whole number). 200,000 $250,000 $14.00 Dedicated Machine (DM) 200,000 $525,000 $13.00
You are hired as a consultant for Cool Zone Inc. The company currently has a 1-year contract for the production of 200,000 fuse-plugs for a new state of the art off-road vehicle. With an increasing demand for these vehicles, The owner however, hope that the contract will be extended which will result in increased volume next year. Cool Zone has developed cost for 3 alternatives namely: General-Purpose Equipment (GPE), Flexible manufacturing System (FMS) and expensive but market dominant machine (DM). The cost associated with labour, raw materials and equipment per unit produced is as follows: GPE is $15, while DM and FMS have an associated cost of $13 and $14 respectively. The cost associated with FMS is $200,000, GPE $ 100,000 and DM $500,000 respectively. Regardless of the decision made, the company has to produce a total of 200,000 fuse plugs. (a) Based on the information above, which is the best option for the contract? What technique was used to determine your answer? Provide an…
anu Describe what is remanufacturing? Explain in detail at least 3 benefits of using remanufactured products.
Borges Machine Shop, Inc., has a 1-year contract for the production of 250,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow: General Purpose Equipment (GPE) Flexible Manufacturing System (FMS) 250,000 $125,000 $15.00 Annual contracted units Annual fixed cost Per unit variable cost The option GPE is best when the contracted volume is below units (enter your response as a whole number). Dedicated Machine (DM) 250,000 $225,000 $14.00 250,000 $525,000 $13.00
Design Within Reach (DWR) Design Within Reach (DWR) is one of the leading hardwood furniture manufacturers. While DWR has many small competitors, none of them controls a significant market share. Like most furniture manufacturers, DWR sells its products to a wide variety of small furniture stores, none of which represents a large percentage of DWR's sales. DWR can choose among many wood (an undifferentiated commodity) suppliers to find the best price and delivery. The growth rate of the hardwood furniture industry has slowed considerably in recent years. Many consumers purchase "IKEA type" furniture made of composite wood, which is substantially less expensive than hardwood furniture. The level of direct competition in the hardwood furniture industry can best be described as moderate because the slowing growth rate offsets the numerous firms in the industry. low because of the numerous firms in the industry and the slowing growth rate low because of the slowing growth rate and the…
Hotel ComplaintsA luxury hotel has been receiving a lot of complaints from guests recently. The manager worries that if these complaints continue, the hotel will start to lose clients. Therefore, you have been hired as a consultant to correct the problem(s). A list of the major complaints by week for the last month is as follows: Complaint Number of Occurrences Week 1Error on bill 10Room not ready at check-in 8Room service delivery late 3Longline at check-out 10 Week 2Error on bill 12Noise in hallway 2Longline at check-out…