12. Firm Xneeds a special part for a new model in their range. If firm X makes t
ID: 352988 • Letter: 1
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12. Firm Xneeds a special part for a new model in their range. If firm X makes the part, they will incur an annual fixed cost of $400,000 and a variable cost of S100 per unit. The managers of firm X decide to consider outsourcing production of the special part and request a quote from supplier S. The operations people at supplier S can accurately estimate the fixed and variable costs faced by firm X. The sales people at supplier S forecast that the new model of firm X will require an annual quantity of at most 8,000 units of the special part. If supplier S decides to offer firm X variable cost of $125 per unit in the quote, what's the maximum fixed cost that supplier S can offer, in order to be confident of getting the contract? Answer: 13. 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 14. 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. Supplier Annual Price Annual carrying per unit cost per unit 1 Annual freight cost 150 units/order 250 units/order Lead time (days) administrative co A $44.00 -t $42.00 $11.00 $10.50 $32,000 $28,000 $28,000 $24,000 $50,000 $70,0 Total costs for Supplier A are: $480,200/year with 150 units/order, or $ 476,750/lyear with 250 units/order. Whi and order option is best? (B) Supplier A; 250 units/order. (E) Orders of 250 units from either supplier (C) Supplier B; 150 uniter (A) Supplier A; 150 units/order. (D) Supplier B; 250 units/orderExplanation / Answer
The bullwhip effect can be measured by comparing the variances of orders to the variances of demand at different stages in a supply chain. Which of the following phenomena is typical for bullwhip effect.
It is the larger upstream in supply chain
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