Keislss Inc produces refinery glass products and is about to expand its operations in sweden , where the fixed cost and the variable cost are $ 9,00,000 and $ 92 per unit. Also, the company can purchase the product by sourcing the operations to local manufacturers in sweden for $ 150 per unit and 10,000 units per annum is the demand of the country. Ascertain which option is good for the company cost wise

Keislss Inc produces refinery glass products and is about to expand its operations in sweden , where the fixed cost and the variable cost are $ 9,00,000 and $ 92 per unit. Also, the company can purchase the product by sourcing the operations to local manufacturers in sweden for $ 150 per unit and 10,000 units per annum is the demand of the country. Ascertain which option is good for the company cost wise

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter15: Retailing, Direct Marketing, And Wholesaling

Section15.1: L.l.bean: Open 24/7, Click Or Brick

Problem 3VC

See similar textbooks

Similar questions

Bamburi Cement is a cement manufacturing company that has been operating in Kenya for more than ten years. The supply chain of Bamburi includes the suppliers and customers. Effective management of the supply chain relationships is a critical factor in ensuring increased profits by Bamburi. Required; Explain two ways that adoption of a modern Enterprise resource planning software such as Microsoft Navision would enable Bamburi to improve the supply chain relationships with the suppliers and customers. (b) Explain two ways that a well-developed and designed Accounting system would add value for an organization such as Strathmore University.
Tropical Leisure Limited has been making high quality Caribbean leisure wears for over twenty-five years, in old rented premises located in the heart of the Barbadian capital of Bridgetown. The company has a flexible labour force of about twenty employees and three directors, only one of whom, namely Mr. Grant, the managing director, is fully active in the business, who wishes to take the business outside of Barbados. Thoughts have been given to launch a small sample on the European market. The company specializes in leisure and swim wear garments for the exotic, high end markets. Their current range consists of tee shirts, shorts, skirts and bath suits in rich vibrant Caribbean colours and styles for men, women and children. The company capacity is 400-500 garments per week, depending on style and continuity of the production run, but additional floor space and machines could be brought in quickly to raise production levels to a maximum of 1000 garments weekly if required. A new…
Following are some of the information on demand and costs of a mobile phone manufacturer: Monthly Sales for previous year were 10,000 Mobile Phones. Overall Market has grown at 15% from the previous year. The company uses a third-party storage solution for keeping its inventory. The charges are Rs. 100/unit. For procuring the raw material company relies on a contractor which provides them a one stop solution and charges Rs. 3000 per order. The actual cost of the raw material is approximately 7000/unit. Using the above given information answer the following questions? What is the Economic Order Quantity for the company? If a working year is 300 days find out how many orders the company will place for the current year and what would the gap between two orders? What will be the total cost of inventory policy for the company? If the delivery lead time for receiving the order is 20 days what should be the reorder point for the company?
K Horizon Cellular manufactures cell phones for exclusive use in its communication network. Management must select a circuit board supplier for a new phone soon to be introduced to the market. The annual requirements (D) are 50,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are in the following table. Supplier Abbott Baker Carpenter Annual Freight Costs Shipping Quantity (Q) Annual Price/Unit Holding Cost/Unit (P) $31 $30 $29 Using and a shipping quantity of Horizon Cellular of $ (Enter your response as an integer.) 4 10,000 20,000 $12,000 $9,000 $8,000 $5,000 $9,000 $6,000 Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular? (H) $6.20 Lead Time (L) (days) 5 $6.00 $5.80 7 6 Annual Administrative Cost $12,000 $8,000 $9,000 units is the lowest cost alternative, with annual total costs to
Suman can purchase brass cups for Rs 32 per unit pr produce it in house where the associated fixed and variable costs are Rs 62000 and Rs 22 respectively and if the demand for this component is 600 units per annum, ascerta Whether it is economical to make the product in house rather than sourcing it ?
Horizon Cellular manufactures cell phones for exclusive use in its communication network. Management must select a circuit board supplier for a new phone soon to be introduced to the market. The annual requirements (D) are 60,000 units and Horizon's plant operates 250 days per year. The data for three suppliers are in the following table. D Annual Freight Costs Shipping Quantity (Q) Annual 10,000 $11,000 Supplier Abbott Baker Carpenter Price/Unit 20,000 (P) $8,500 $30 $6,500 $31 $5,500 Annual Holding Cost/Unit (H) $6.00 $6.20 Lead Time (L) (days) 4 7 Administrative Cost $11,000 $9.000 $9,000 $8,000 $29 $5.80 3 $8,000 Which supplier and shipping quantity will provide the lowest total cost for Horizon Cellular? Using and a shipping quantity of units is the lowest cost alternative, with annual total costs to Horizon Cellular of S. (Enter your response as an integer.)
Adelie Enterprises has decided to dropthe international supplier from consideration. Furthermore,Adelie has decided to order boxes in lots of 10,000 to op-timize the use of available storage space at its distributionfacility. To more completely consider the cost/volume trad-eoffs associated with selecting the local or national supplier,management has collected the following data. Adelie servicesits customers 250 days per year. a. On purely a total cost basis, which supplier should beselected if there is low demand for Adelie’s new service;which supplier should be selected under moderatedemand assumptions; and which supplier should beselected under high demand?b. Which supplier achieves the lowest expected cost ifthe probability of low demand is 35 percent, moderatedemand is 45 percent, and high demand is 20 percent?
Bamburi Cement is a cement manufacturing company that has been operating in Kenya for more than ten years. The supply chain of Bamburi includes the suppliers and customers. Effective management of the supply chain relationships is a critical factor in ensuring increased profits by Bamburi. Required; Explain two ways that adoption of a modern Enterprise resource planning software such as Microsoft Navision would enable Bamburi to improve the supply chain relationships with the suppliers and customers.
Sourabh Gupta can purchase copper bottles for $ 34 per piece and can manufacture it in house where the fixed and variable cost are $ 51,000 and $ 19 respectively. If the market demand for the bottles is 4500 units for a month, ascertain that whether it would be economical to make the product in house rather than sourcing it .
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Sadly, space does not permit an exhaustive list but once the test is over, check out their website. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars. Table 1 Unit costs Supplier Price/Unit Carrying Cost A 123 22 B 125 19 C 126 18 D 100 40 Annual Freight Costs Supplier 15,000 units 25,000 units 50,000 units A 380,000 260,000 237,000 B 615,000 547,000 470,000 C 285,000 240,000 200,000 D 380,000 260,000 237,000 Other Costs Supplier Lead Time Annual Admin Costs A 30 250,000 B 15 275,000 C 7 225,000 D 90…
6. Northcutt manufactures high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1,550 sets a month. Supplier A is a domestic firm, and Suppliers B and C are located overseas. Cost information for the suppliers is as follows: Supplier A-Price of $100 per set, plus packing cost of $2 per set. Total inland freight costs for all 1,550 units would be $800 per month. ▪ Supplier B-Price of $96 per set, plus packing cost of $3.50 per set. International transportation costs would total $3,500 per month, while total inland freight costs would be $800 per month. Supplier C-Price of $93 per set, plus packing cost of $3.00 per set. International transportation costs would total $5,000 per month, while total inland freight costs would be $1,000 per month. a. (**) Calculate total landed costs per unit and per month for the three potential suppliers. Who is the cheapest? Who is the most expensive? b. (***) Suppose that international and inland freight costs are…
Reliance Fresh is sourcing electric tandoori ovens from Panasonic for its Indian retail operations. The two parties have negotiated a wholesale supply price of $310/unit. The expected demand distribution for the tandoori ovens is given below. Reliance plans a selling price of $430/unit, ovens unsold after 6 months will be sold at a clearance price of $215/unit. What is the expected Reliance Fresh profit if the wholesale order quantity is 5300 units? Integer answer. DEMAND PROBABILITY 4,361 6% 4,789 14% 4,935 21% 5,001 28% 5,420 22% 5,573 9% 6,373 5% Panasonic’s variable cost is $130/unit and the fixed production cost is $207,109. What is Panasonic’s (manufacturer) profit? Integer answer.