Chapter 1, Problem 12.6EC

Quality Chemicals Ltd manufactures a chemical compound which is widely used in industrial cleaning. The compound is made from a small number of chemical products. One of these raw materials, Chemical X, is bought from a supplier in a developing country. Chemical X is scarce and is available from only a few global suppliers. In its untreated form, Chemical X is also toxic and can cause serious damage to the health of individuals who are exposed to it. It is also known that the local environment around factories that produce Chemical X are subject to extensive contamination. A few months ago, Quality Chemicals Ltd renewed a long-term agreement with the supplier for the purchase of Chemical X. Senior management are aware of the health and environmental risks associated with Chemical X, but did not see that these had any relevance to its own business. The toxic effects of the chemical are eliminated by its treatment in the production process that Quality Chemicals uses to make its own…

Quality Chemicals Ltd manufactures a chemical compound which is widely used in industrial cleaning. The compound is made from a small number of chemical products. One of these raw materials, Chemical X, is bought from a supplier in a developing country. Chemical X is scarce and is available from only a few global suppliers. In its untreated form, Chemical X is also toxic and can cause serious damage to the health of individuals who are exposed to it. It is also known that the local environment around factories that produce Chemical X are subject to extensive contamination. A few months ago, Quality Chemicals Ltd renewed a long-term agreement with the supplier for the purchase of Chemical X. Senior management are aware of the health and environmental risks associated with Chemical X, but did not see that these had any relevance to its own business. The toxic effects of the chemical are eliminated by its treatment in the production process that Quality Chemicals uses to make its own…

Quality Chemicals Ltd manufactures a chemical compound which is widely used in industrial cleaning. The compound is made from a small number of chemical products. One of these raw materials, Chemical X, is bought from a supplier in a developing country. Chemical X is scarce and is available from only a few global suppliers. In its untreated form, Chemical X is also toxic and can cause serious damage to the health of individuals who are exposed to it. It is also known that the local environment around factories that produce Chemical X are subject to extensive contamination.A few months ago, Quality Chemicals Ltd renewed a long-term agreement with the supplier for the purchase of Chemical X. Senior management are aware of the health and environmental risks associated with Chemical X, but did not see that these had any relevance to its own business. The toxic effects of the chemical are eliminated by its treatment in the production process that Quality Chemicals uses to make its own…

b) Quality Chemicals Ltd manufactures a chemical compound which is widely used in industrialcleaning. The compound is made from a small number of chemical products. One of these rawmaterials, Chemical X, is bought from a supplier in a developing country. Chemical X is scarceand is available from only a few global suppliers. In its untreated form, Chemical X is also toxicand can cause serious damage to the health of individuals who are exposed to it. It is also knownthat the local environment around factories that produce Chemical X are subject to extensivecontamination.A few months ago, Quality Chemicals Ltd renewed a long-term agreement with the supplier forthe purchase of Chemical X. Senior management are aware of the health and environmental risksassociated with Chemical X, but did not see that these had any relevance to its own business. Thetoxic effects of the chemical are eliminated by its treatment in the production process that QualityChemicals uses to make its own chemical…

Paper factories emit chemicals as a waste product. This generates a cost to society that is not paid for by the firm; therefore, pollution is a negative externality of paper production. Suppose the U.S. government wants to correct this market failure by getting firms to internalize the cost of pollution. To do this, the government can charge firms for pollution rights (the right to emit a given quantity of chemicals). The following graph shows the daily demand for pollution rights. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.   Suppose the government has determined that the socially optimal quantity of chemical pollution is 120 million tons per day. One way governments can charge firms for pollution rights is by imposing a per-unit tax on emissions. A tax (or price…

Delta Telephone ltd. ,a subsidiary of a multinational  company is a supplier of telephone services to a medium sized community in Ghana. John Dela , the chief executive of the company has just attended a trade exhibition entitled ‘Automated Emigrate’ in Japan. As a result of what he learned  from  the exhibition  and information he has picked from  his peers in other companies , Mr Dela  is concerned about  Delta’s ability  to maintain its competitiveness position in the telecommunication market in Ghana. Owing to deregulation in the telecommunication industry and the aggressive action of new competitors in the local area, a significant number of Delta’s customers have switched to other suppliers of telephone and related telecommunication services. Mr Dela feels that if Delta were to invest fully in new state- of –the- art  fiber-optics  technology as well as upgrade in the   latest computer equipment , the loss of market share may be arrested  and operating efficiency may be improved…

I keep working this problem over and over and been working on it but cant seem to get it right    [The following information applies to the questions displayed below.]   Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse a portion of the purchase price to the customer.   During the past quarter, the purchasing and delivery data for the two suppliers showed the following.     Milan Dundee Total Total purchases (cartons)   98,000     42,000     140,000   Average purchase price (per carton) $ 20.00   $ 22   $ 20.60   Number of deliveries   80     20     100   Percentage of late deliveries   25 %   10 %   22 %     The Accounting Department recorded $602,700 as the cost of late deliveries to customers.   Required: Assume that the average quality,…

Many outsourced jobs have resulted in offshoring jobs, rather than using domestic outsourcing. If a U.S. company wants to offshore a service like customer service, for example, what are some of their considerations? In your answer, address offshoring disadvantages as compared with domestic outsourcing.

You are a supply chain manager at a UK firm. In 2010, a volcano broke out in Iceland, disrupting air travel across Europe. On the one hand, you are considering switching to local suppliers in the UK. On the other hand, you feel bad about abandoning your Asian suppliers, with whom you have built a pleasant personal and business relationship, and who – in the long run – may be able to deliver products much cheaper. Yet, your tightly coordinated production cannot afford to miss one supply shipment. How do you proceed?