please answer within 30 minutes. Background: As the owner of the Smoke+Tastemeat shop, Kristine can purchase a pound of ribsfor $15 early each morning at the local market.During the day, Kristine then sells these ribs to localrestaurants for $80 each. Coupled with theperishable nature of her product, Kristine's integrityas a top quality supplier requires her to dispose ofall unsold ribs at the end of each day. The cost ofdisposal is $2 per pound. To maintain goodcustomer relationship with customers, Kristinegives a $5 coupon for every pound of ribs shecannot supply. While her life would be a lot easierif Kristine could perfectly predict her daily demand,the best estimate for her daily demand is that itfollows a Normal distribution with mean 100 andstandard deviation 30. Kristine now purchases 120pounds of ribs every morning. Question: Nowsuppose that the local market is no longer able todeliver a rush order. Instead, Kristine expands heroffering to include chicken and fish. She buyschicken at $10 per pound and sells it at $40 perpound; she buys a pound of fish for $40 a poundand sells it for $90 a pound. The cost of disposaland the coupon incentives are the same as earlier.Kristine estimates that demand for chicken isnormally distributed with mean 100 and standardeviation 10, while demand for fish is normallydistributed with mean 150 and standard deviation30. Furthermore, she estimates that if she was tostock out of ribs, half of the customers wouldpurchase chicken or fish, if those are available. Ifshe stock outs of chicken or fish, customers do notpurchase anything. What would be Kristine'sexpected profit if she orders 110 pounds of eachproduct?

Ribs:Purchasing cost: $15 per poundSelling price: $80 per poundDisposal cost: $2 per poundCoupon…

Answered: purchase anything. What would be…

Business

Operations Management

purchase anything. What would be Kristine's expected profit if she orders 110 pounds of each product?

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. 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?
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