She must travel to Kenya to check on quality and transportation. The trip will cost $2,500. The cost of the handbag is $10 and shipping to the United States can occur through the postal system for $2 per handbag or through a freight company which will ship a container that can hold up to 1,000 handbags at a cost of $1,000. The freight company charges $1,000 even if less than 1,000 handbags are shipped. Leslie will sell the handbags to retailers for $20. Assume there are no other costs and benefits. what is the output level that both shipping methods yield same profit?

She must travel to Kenya to check on quality and transportation. The trip will cost $2,500. The cost of the handbag is $10 and shipping to the United States can occur through the postal system for $2 per handbag or through a freight company which will ship a container that can hold up to 1,000 handbags at a cost of $1,000. The freight company charges $1,000 even if less than 1,000 handbags are shipped. Leslie will sell the handbags to retailers for $20. Assume there are no other costs and benefits. what is the output level that both shipping methods yield same profit?

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Description: She must travel to Kenya to check on quality and transportation. The trip will cost $2,500. The cost of the handbag is $10 and shipping to the United States can occur through the postal system for $2 per handbag or through a freight company which w

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section: Chapter Questions

Problem 69P: The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon...

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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?
The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The company can deliver as many cans as it chooses. Then the salmon are caught. For each can by which Tinkan falls short of the salmon industrys needs, the company pays the industry a 2 penalty. Cans cost Tinkan 1 to produce and are sold by Tinkan for 2 per can. If any cans are left over, they are returned to Tinkan and the company reimburses the industry 2 for each extra can. These extra cans are put in storage for next year. Each year a can is held in storage, a carrying cost equal to 20% of the cans production cost is incurred. It is well known that the number of salmon harvested during a year is strongly related to the number of salmon harvested the previous year. In fact, using past data, Tinkan estimates that the harvest size in year t, Ht (measured in the number of cans required), is related to the harvest size in the previous year, Ht1, by the equation Ht = Ht1et where et is normally distributed with mean 1.02 and standard deviation 0.10. Tinkan plans to use the following production strategy. For some value of x, it produces enough cans at the beginning of year t to bring its inventory up to x+Ht, where Ht is the predicted harvest size in year t. Then it delivers these cans to the salmon industry. For example, if it uses x = 100,000, the predicted harvest size is 500,000 cans, and 80,000 cans are already in inventory, then Tinkan produces and delivers 520,000 cans. Given that the harvest size for the previous year was 550,000 cans, use simulation to help Tinkan develop a production strategy that maximizes its expected profit over the next 20 years. Assume that the company begins year 1 with an initial inventory of 300,000 cans.
These are three points of problems that can occur in a parcel: -Low responsiveness to unexpected distribution problems. -Distribution problems in terms of quality of service and experience for the customer. -Uncertainty in the management and delivery of packages. explains each of them
After applying the NWC Rule for the initial tableau of the given transportation model, evaluate the vacant cells. What is the cell which has the most negative evaluation value and what is the cell evaluation value? DESTINATION SOURCE DEMAND X Y N OX-R; 1 OY-S; -1 OX-S; -1 OY-S; -2 P 75 8 12 EI 11 Q 80 5 8 11 R 120 7 10 10 S 50 11 13 14 SUPPLY 100 125 100 325
Morton Corporation manufactures computers and wants to select a supplier to purchase chips for its computers. There are two major suppliers of chips – AirBoxChips and SoftChips. AirBoxChips is a relatively big company and has a good reputation in terms of reliability and delivery. As it is a big company, it provides supply guarantee and sells its products with a higher price. Specifically, it charges $1.20 for each chip that it sells. SoftChips is small company having limited capacity. Even though it charges $0.90 for each chip that it sells, it does not provide supply guarantee. If it is a low-demand year, Softchips is able to satisfy Morton’s demand fully. However, if it is a high-demand year, it allocates only 90,000 chips for the purchase of Morton. If Morton cannot purhcase chips from its contracted supplier, it buys chips on the spot market. Spot market prices for chips are $2.00 per unit in a low-demand year and $4.00 per unit in a high-demand year. Demand in chips has a 75%…
Dr. Vicki Belya is traveling from Yangoon to Los Angeles. She needs to change planes in Bangkok and board another airline’s flight in Tokyo. However, the ariline she is flying does not have interline agreements. Provide a basic explanation of what she can expect at every point of her journey.
A manager at Strateline Manufacturing must choose between two shipping alternatives: two-day freight and five-day freight. Using five-day freight would cost $180 less than using two-day freight. The primary consideration is holding cost, which is $8 per unit a year. 2,300 items are to be shipped. Which alternative would you recommend?
A West Indies tour service provider is considering marketing West Indies tours to the U.S., Canada and the U.K. The tour provider finds that there are a lot of tours being offered by existing providers in the U.S. and Canada and there are many flights connecting the markets. Few tours are being offered in the U.K., but there are only a small number of flights connecting it to the Bahamas. Research of West Indies accommodation data indicates there has been little growth in accommodation bookings from any of these countries. Given the data, should the tour service provider market tours in these countries?
MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery. Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or materialize. There’s also need…
MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery. Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or materialize. There’s also need…
MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery. Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or materialize. There’s also need…
MS Company is a Trading Company involved in Import and export trade. With various suppliers from Europe and Asia, MS has to keep track of the activities of its suppliers and the entire supply chain. Indeed, MS has to ensure that quality standards and other production standards like occupation safety, labour and human rights are upheld. The shipment process also has its own challenges ranging from damage due to poor handling in shipment containers, loss of goods on transit due to theft or as a result of sea jettisoning practice, and delays in delivery. Considering MS’s internal operations, the company equally has challenges of managing the same. MS has both bonded warehouses and stores with a very large workforce. The employees are a responsibility of MS company. And given that they work in a risky environment and conditions, MS is vulnerable to heavy expenses in form of compensation and life cover for its employees in case these risks become issues or materialize. There’s also need…