Recently, Abercrombie & Fitch (A&F) began shifting a large portion of its Asiandeliveries to the U.S. from air freight to slower but cheaper ocean freight. Shippingcosts have been cut dramatically, but shipment times have gone from days to weeks.In addition to having less control over inventory and being less responsive tofashion changes, the holding costs have risen for the goods in transport. Meanwhile,Central America might offer an inexpensive manufacturing alternative that couldreduce shipping time through the Panama Canal to, say, 6 days, compared to, say,28 days from Asia. Suppose that A&F uses an annual holding rate 31%. Supposefurther that the product costs $21 to produce in Asia. Assume that the transportationcost via ocean linear would be approximately the same whether coming from Asia orCentral America.a) What is the product cost plus holding cost per unit from Asia?The product cost plus holding cost per unit from Asia is $three decimal places).(round your response tob) If the product cost in Central America is x, what is the holding cost per unit whenshipping from Central America (as a function of x)?The holding cost per unit when shipping from Central America is $ x (round yourresponse to three decimal places).c) Given a) and b), what is the break-even point for x? In other words, what would themaximum production cost in Central America need to be in order for that to be acompetitive source compared to the Asian producer?The maximum production cost in Central America should be $response to two decimal places).(round your

Answered: Image /qna-images/answer/1a3d5ad6-f744-4a33-8f9b-c93ade8883ac.jpg

Answered: Recently, Abercrombie & Fitch (A&F)…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Identify an appropriate inventory management strategy which Nike could implement in order to be more efficient in servicing its Russia, Turkey and South African markets?
Please no written by hand Executives at Leonesse Cellars, a premium winery in Southern California, were surprised to learn that shipping wine by sea to some cities in Asia was less expensive than sending it to the East Coast of the United States, so they started shipping to Asia (David Armstrong, “Discount Cargo Rates Ripe for the Taking,” San Francisco Chronicle, August 28, 2005). Because of the large U.S. trade imbal-ance with major Asian nations, cargo ships arrive at West Coast seaports fully loaded but return to Asia half to completely empty. Use the concept of opportunity cost to help explain the differential shipping rates.
What is the most appropriate inventory management strategy especially for a company like Nike serving the South African Region, Russia and Turkey?
The world’s largest retailer, Walmart, owns and manages its own fleet of trucks. The company has often received praise for its distribution capabilities. The practice, however, seems to represent a stark contrast to the practice of outsourcing not only shipping, but other logistics operations to third-party logistics providers. Address the advantages and disadvantages of these different policies. Under what conditions would it make sense for a firm to own and manage its own trucking operation?
Using the Case above, explain and interpret the concepts of Supply chain management and Network Logistics used by DELL to be a cutting edge company in a highly competitiveindustry.
MGMT Bakehouse Inc (MBI), supplies bread, cakes and other specialty products, to a large percentage of the country; to the following customer types. Retailers e.g. supermarkets, who sell baked goods to the public, and MGMT Bakehouse Inc delivers to the retailers. Wholesalers also sell to the public, but come to MGMT Bakehouse Inc directly to collect their baked goods. Finally institutions like hotels and hospitals, to whom MGMT Bakehouse Inc delivers directly, buy baked goods to incorporate into offering for their clients e.g. guests menus and patient meal plans. From the ordering of flour and other ingredients to the processing of cash, receivables and payables, the company uses an integrated ERP with a common database for all of its business processes. Internally MGMT Bakehouse Inc is organized into the following departments: Production which bakes the bread; Distribution that delivers the bread; Sales Department where customer orders and wholesale pickups are managed; Marketing that…
MGMT Bakehouse Inc (MBI), supplies bread, cakes and other specialty products, to a large percentage of the country; to the following customer types. Retailers e.g. supermarkets, who sell baked goods to the public, and MGMT Bakehouse Inc delivers to the retailers. Wholesalers also sell to the public, but come to MGMT Bakehouse Inc directly to collect their baked goods. Finally institutions like hotels and hospitals, to whom MGMT Bakehouse Inc delivers directly, buy baked goods to incorporate into offering for their clients e.g. guests menus and patient meal plans. From the ordering of flour and other ingredients to the processing of cash, receivables and payables, the company uses an integrated ERP with a common database for all of its business processes. Internally MGMT Bakehouse Inc is organized into the following departments: Production which bakes the bread; Distribution that delivers the bread; Sales Department where customer orders and wholesale pickups are managed; Marketing that…
MGMT Bakehouse Inc (MBI), supplies bread, cakes and other specialty products, to a large percentage of the country; to the following customer types. Retailers e.g. supermarkets, who sell baked goods to the public, and MGMT Bakehouse Inc delivers to the retailers. Wholesalers also sell to the public, but come to MGMT Bakehouse Inc directly to collect their baked goods. Finally institutions like hotels and hospitals, to whom MGMT Bakehouse Inc delivers directly, buy baked goods to incorporate into offering for their clients e.g. guests menus and patient meal plans. From the ordering of flour and other ingredients to the processing of cash, receivables and payables, the company uses an integrated ERP with a common database for all of its business processes. Internally MGMT Bakehouse Inc is organized into the following departments: Production which bakes the bread; Distribution that delivers the bread; Sales Department where customer orders and wholesale pickups are managed; Marketing that…
Have you ever visited or heard about butterflies’ gardens or houses? It’s an amazing, exciting, and educational experience, right? What also amazing is how they transport such small species globally.I have visited a butterfly garden in Yanbu, and spent all the time thinking of the challenges and difficulties of transporting such small and sensitive species, specially when I knew that they brought most of them all the way from Peru. The reason that made them bring it from there is that Peru has over 3,700 butterfly species and considered the home of more than 20% of the world’s butterflies.Since you have fair amount of knowledge about “Transportation Modes”, let’s work on a real-life case and explore what you would do if you were responsible of transporting those butterflies from Peru to Yanbu.Task:- Think about all parts of the route that would be taken to transport the butterflies from Peru to Yanbu.- For each part, suggest a suitable transportation mode.- Support your suggestion with…
Africa’s Leading Bulk Maize Supplier and Distributor We are “Amaizing” Maize Suppliers in South Africa. Buying from us means you will enjoy the Lowest Prices for your Maize. As maize suppliers in South Africa, we are always on the lookout for the lowest prices of our bulk maize products. Founded in 2016, our team sources the lowest prices for maize and then we sell it to buyers based throughout South Africa. The maize is sold in amounts of 34 tons, which is basically a truckload, and the maize is suitable for the creation of a variety of maize products. As maize suppliers in South Africa, we source delicious maize at affordable prices from the country’s best maize producers. When buying bulk maize from us, you will find that you enjoy great value for money while also saving with our low prices. Discover a new way to buy South Africa’s delicious maize and grow your business. We are trusted by many, and we can supply you with quality maize products as well. We offer the highest A Grade…
Africa’s Leading Bulk Maize Supplier and Distributor We are “Amaizing” Maize Suppliers in South Africa. Buying from us means you will enjoy the Lowest Prices for your Maize. As maize suppliers in South Africa, we are always on the lookout for the lowest prices of our bulk maize products. Founded in 2016, our team sources the lowest prices for maize and then we sell it to buyers based throughout South Africa. The maize is sold in amounts of 34 tons, which is basically a truckload, and the maize is suitable for the creation of a variety of maize products. As maize suppliers in South Africa, we source delicious maize at affordable prices from the country’s best maize producers. When buying bulk maize from us, you will find that you enjoy great value for money while also saving with our low prices. Discover a new way to buy South Africa’s delicious maize and grow your business. We are trusted by many, and we can supply you with quality maize products as well. We offer the highest A Grade…
Africa’s Leading Bulk Maize Supplier and Distributor We are “Amaizing” Maize Suppliers in South Africa. Buying from us means you will enjoy the Lowest Prices for your Maize. As maize suppliers in South Africa, we are always on the lookout for the lowest prices of our bulk maize products. Founded in 2016, our team sources the lowest prices for maize and then we sell it to buyers based throughout South Africa. The maize is sold in amounts of 34 tons, which is basically a truckload, and the maize is suitable for the creation of a variety of maize products. As maize suppliers in South Africa, we source delicious maize at affordable prices from the country’s best maize producers. When buying bulk maize from us, you will find that you enjoy great value for money while also saving with our low prices. Discover a new way to buy South Africa’s delicious maize and grow your business. We are trusted by many, and we can supply you with quality maize products as well. We offer the highest A Grade…

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