With the changes: (and the comparison with A to D is mentioned) Sales have incre

Question

With the changes: (and the comparison with A to D is mentioned)

Sales have increased to 350 hotdogs per sale day and the hotdog wholesaler is now offering Daisy some quantity discounts when certain order minimums are reached. The prices shown are in cents per hotdog.

Minimum Order

0 200 500   1500 2500 5000

Unit Price 27 25 23 21 19 17

Daisy wants something into which Madison could enter the minimum quantity and cost for each quantity break point and have it compute the best order amount, carrying cost at that amount, order cost, production cost, and total overall cost. Madison suggested the following. Many of the costs actually have decimals, but Daisy wanted them re-formatted (without actually changing the values) because it’s hard for Daisy to count change with paws. [note: format, don’t round]. Madison also added a note so that it was clear which one Daisy should choose because, well, she’s a dog.

a) Modify the “Quantity” sheet to include the following table into which Madison can enter the minimum quantities and their respective prices and have other items computed, including “N/A” where appropriate and the “ßDaisy choose this one” note to Daisy as shown below.

b) Daisy’s hotdog sales keep improving and eventually they’re running 200 hotdog sale days per year and averaging 430 hotdogs per day. The wholesaler is shipping nearly full container of hotdogs to the city each trip, would love increase that to a full container, and also would benefit from a little advertising by supporting this worthy cause. As a result, Daisy is offered a quantity break for 10,000 hotdogs at a time for only 5 cents apiece or only a penny each if she’ll buy 12,000 in each order.

Modify the above table to include these new price breaks to help Daisy determine how many hotdogs to purchase

D Demand 42080 units per day 160*263 units d Daily sales 115 units D/w Ans A K Ordering cost 60 $ per order h Holding cost 3.65 $ per unit per day w Working days 365 Days EOQ (Sqrt(2*k*D/h) 1176 units Ans A N No of orders 36 times Total orders/EOQ Ans B Toc Total ordering cost annualy 2147 $ N*K Ans C Thc Annual Holding cost 2147 $ EOQ*h/2 Ans C TC Total cost 4293 $ (Toc+Thc) Ans C Length of order cycle 10 days (Total days/No of orders) Ans D

Explanation / Answer

The diamond framework identifies demand conditions, factor conditions, related and supporting industries, firm strategy, structure and rivalry.

So the answer is option "a".

Factor conditions are human and physical resources. Demand condition in home market can create competitive advantages. Related and supporting industries can provide cost effective inputs. Firm strategy and rivalry, government and chance are other frameworks.

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