employees who work as a team on a variety of tasks; each employee works a full 40 hours a week. However, costs are also a concern. The consultant advised management that they could supplement work crews with short-term employees, at a higher cost, to cover unexpected needs on a weekly basis. Each work crew permanently hired by Sanchez costs $3,400 per week in wages and benefits, while a crew of short-term employees costs $5,600 per week. Complicating the decis is the fact that the weekly hourly requirements for work crews is uncertain because of the volatility in the number of deliveries to be made. Deliberating with management, the consultant arrived at the following data. 960 1,200 1,440 1,680 Requirements (man-hours) Probability Number of crews 0.1 0.3 0.5 0.1 4 6 7 If the consultant wants to offer a solution that minimizes the expected weekly costs for Sanchez, how many work crews should Sanchez have on its permanent payroll? A payroll containing work crews is the lowest cost alternative, with expected weekly costs to Sanchez of $ (Enter your responses as integers.)

employees who work as a team on a variety of tasks; each employee works a full 40 hours a week. However, costs are also a concern. The consultant advised management that they could supplement work crews with short-term employees, at a higher cost, to cover unexpected needs on a weekly basis. Each work crew permanently hired by Sanchez costs $3,400 per week in wages and benefits, while a crew of short-term employees costs $5,600 per week. Complicating the decis is the fact that the weekly hourly requirements for work crews is uncertain because of the volatility in the number of deliveries to be made. Deliberating with management, the consultant arrived at the following data. 960 1,200 1,440 1,680 Requirements (man-hours) Probability Number of crews 0.1 0.3 0.5 0.1 4 6 7 If the consultant wants to offer a solution that minimizes the expected weekly costs for Sanchez, how many work crews should Sanchez have on its permanent payroll? A payroll containing work crews is the lowest cost alternative, with expected weekly costs to Sanchez of $ (Enter your responses as integers.)

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 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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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. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
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?
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.
In anticipation of an upcoming engagement, an internal audit team recently toured the company’s receiving, warehousing, and production facilities to obtain a better understanding of day-to-day operations. Listed below are selected items noted by the internal audit team during the tour: ■A large quantity of materials was sitting in a corner near the unloading docks. The receiving manager informed the audit team that the delivery trucks had already left. The materials had not yet been counted or inspected. ■One section of the warehouse contained large quantities of items with inventory tags from several physical inventory counts. The warehouse manager told the audit team that this was the company’s inventory of spare parts that it was required by law to keep on hand for specified time periods. ■Hazardous chemicals are used in the inventory finishing process. Waste chemicals are stored in large plastic barrels in a designated area of the factory before being shipped for disposal. For each…
A small-size cargo company in Dubai has been operating since the year 2000. The total workforce comprises ten employees, out of which five are in sales, three are in operations, one is handling legal and accounts matters, and one manager is also the owner of the company. Total annual turnover is enough to run the company smoothly. Recently another director has joined who brought large investment to the company. The Board of directors has decided to expand the business in other cities and establish offices overseas in potential locations. This expansion policy will directly be linked to the new manpower needs. Therefore, the board has decided to open an HR department with one HR manager and three staff to look after HR operations. The new HR manager has noticed that the company has a very convenient way of recording the data, where all transactions are recorded on excel documents. “this may not work in the new setup with many branches around the world”, he mentioned in the BOD meeting.…
Charles Lackey operates a bakery in Idaho Falls,Idaho. Because of its excellent product and excellent location,demand has increased by 25% in the last year. On far too manyoccasions, customers have not been able to purchase the bread oftheir choice. Because of the size of the store, no new ovens can beadded. At a staff meeting, one employee suggested ways to loadthe ovens differently so that more loaves of bread can be baked atone time. This new process will require that the ovens be loadedby hand, requiring additional manpower. This is the only thingto be changed. If the bakery makes 1,500 loaves per month witha labor productivity of 2.344 loaves per labor-hour, how manyworkers will Lackey need to add? (Hint: Each worker works160 hours per month.)
Barington Mills manufactures denim cloth from two pri-mary raw materials, cotton and dye. Work-in-process includes lapped cotton, spun yarn, and undyed cloth, whilefinished goods includes three grades of dyed cloth. Theaverage inventory amounts on hand at any one time lastyear and the unit costs are as follows. The company operates 50 weeks per year, and its cost ofgoods sold for the past year was $17.5 million.Determine the company’s inventory turns and weeks ofsupply.
Deforrest Marine Motors manufactures engines for the speedboat racing circuit. As part of their annual planning cycle, they forecasted demand for the next four quarters. The number of available days of production and the anticipated demand are given below. Employees Production Rate Production Cost Backorder Cost Overtime Cost Overtime Limit Demand Q1 2,400 6,019,000 They also estimated many of the costs required to conduct operations planning. Some of these key figures are listed below. 30 70 units/employee/quarter Q2 2,200 $1,000/unit $200/unit/quarter $1,500/unit <= 25% of Reg. Production Q3 1,700 Q4 1,800 Hire Cost Fire Cost Subcontracting Cost Subcontracting Limit Inventory Cost Initial Inventory $1,200/employee $800/employee $1,800/unit 400 units maximum $100/unit/quarter 280 units Deforrest Marine Motors wishes to maintain the current number of employees for the entire year to follow a level strategy balanced with inventory and backorders as needed. What is the total cost of this…
Charles Lackey operates a bakery in Idaho Fals, Idaho. Because of its excellent product and excelent location, demand has inoreased by 25% in the last year. On far boo many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a statf meeting, one employee suggested ways to load the ovens differently eo that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,500 loaves per month, Employees are paid S8 per hour. In addtion to the labor cost. Charles also has a constant utity cost per month of $850 and a per loaf ingredient cost of $0.50 Current multtactor productivity for 640 wark hourn per month - 0223 loavesidolar (round your response to three decimal places) Ater increasing the number of…
onsider an outpatient surgery center that is located in a rectangular building that is 90 feet by 50 feet. There are six departments, each of which is 30 feet by 25 feet in size. Using the "Patient Traffic per Week" matrix. Registration Exam Operating Recovery Labs/Tests X-ray Registration 0 130 30 0 60 20 Exam 0 0 110 40 30 25 Operating 0 0 0 100 10 10 Recovery 0 0 0 0 5 15 Labs/Test 0 0 0 0 0 15 X-ray 0 0 0 0 0 0 a. Determine the total cost per week of the following initial layout. Assuming it cost $4 to move patients between adjacent rooms. Use rectilinear distances Registration X-ray Exam Operating Labs/Tests Recovery b. Design the effective layout that produces the minimum cost per week. show breakdown of work
Supply chain sustainability and operational scheduling—how? The company may use both.