Question 14 and 15 Please!!! 10. When you buy green paint in Home Depot, they ad

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Question 14 and 15 Please!!!

10. When you buy green paint in Home Depot, they add color to a can of white paint. Wl (E) Efficiency (C) Ma A) Assemble-to-order for work-in-process, $2,580,000 for raw materials, and $3,520,000 for finished goods. The supplier operates 50 weeks per year. The annual cost of goods sold is expected to be $60 million. How many weeks of supply do they carry? 11. A supplier of bearings to automobile manufacturers in Detroit has the following average inventory levels: $1,148,000 (D) 7.25 weeks (E) 8.16 weeks (A) 5.82 weeks (B) 6.04 weeks (C) 6.28 weeks 12. The bullwhip effect can be measured by comparing the variance of orders to the variance of demand at different stages in a supply chain. Which of the following phenomena is typical for the bullwhip effect? (A) It is larger downstream in the supply chain (B) It is largest at opposite ends of the supply chain (C) It is smallest at opposite ends of the supply chain. (D) It is largest in the middle of the supply chain (E) It is larger upstream in the supply chain andi 13. A retail store operates 360 days per year. Forecasted demand for one particular product they sell is 9,000 units per year. Two suppliers for this product are possible, and each supplier will allow orders of 150 units or 250 units Price Annual carrying Annual freight cost Lead time (days) administrative cost Supplier per unit $40.00 cost per unit 150 units/order 250 units/order $32,000 $10.00 $10.50 $25,000 $22,000 6 3 $70,000 $60,000 $42.00 $28,000 Total costs for Supplier A are: $464,250/year with 150 units/order, or $ 457,7 50/year with 250 units/order. Which supplier and order option is best? ) Supplier A; 150 units/order (B) Supplier A; 250 units/order (E) Orders of 250 units from either supplier (C) Supplier B; 150 units/order (D) Supplier B; 250 units/order lo- 14. A firm had plans to buy 75,000 pounds of copper futures contract for 75,000 pounds at $2.50 per pound. Today, the market price for copper is around $2.60 per pound it turns out that the firm needs to purchase 80,000 pounds of copper. on 14 December, 2017. In order to fix the price, they entered into a but Which of the following statements is correct? (A) Financial result is negative, physical result is positive, sum of results is zero (B) Financial result is positive, physical result is negative, sum of results is positive (C) Financial result is negative, physical result is positive, sum of results is positive (D) Financial result is positive, physical result is negative, sum of results is negative (E) Financial result is negative, physical result is positive, sum of results is negative ed for tn 15. Firm Xneeds a special part for a new product, but Option Variable cost per unit the annual quantity needed is not yet known. The table on the right shows the costs if firm X makes the part themselves or outsources production to supplier S Annual fixed cost $50,000 $40,000 ) Another supplier, S, has to let firm Xknow today what their charges (fixed and variable cost) will be. Once the quantity needed is known, firm Xwill choose the production option that gives lowest total cost. The variable cost for S2 is $14/unit. What is the maximum fixed cost that S2 can charge, if they want to be certain that firm X will not choose supplier S? wer.

Explanation / Answer

Q14. (B) Financial result is positive, physical result is negative, sum of results is positive

Financial result = Current market price - futures contract price = 2.6-2.5 = 0.1 . This is favorable, hence positive.

Physical result = 75000 - 80000 = -5000 (negative)

Sum of results = 80000*2.6 - (75000*2.5+5000*2.6) = 7500 (positive)

Q15.

Crossover point between X and S1 = (Fixed cost of X - Fixed cost of S1)/(Variable cost of S1 - Variable cost of X) = (50000-40000)/(12-10) = 5000

For 5000 units, Total cost of S1 = Fixed cost+ Variable cost*Volume = 40000+12*5000 = 100000

In order that X will not choose S1, the total cost of S2 for volume upto 5000 units must not be more than the total cost of S1 for this volume. Beyond this volume, neither S1 nore S2 will make economic sense, because X will be cheaper than both.

Therefore, maximum fixed cost of S2 = Total cost - Variable cost*Volume = 100000 - 14*5000 = $ 30,000

The maximum fixed cost that S2 can charge = $ 30,000

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