Assignment:
Q1. (a) Cite a company that competes on Flexibility and support your choice by one or two sentences
(b) Cite an example of Back-sourcing in the business world and support your choice by one or two sentences.
(c) Cite an example of Design-for-Logistics in the business world and support your choice by one or two sentences.
Q2. A company has the following three suppliers to choose from. The rating scale is from 1 to 5, with 5 being the most satisfactory.
|
Criterion
|
Weight
|
Supplier 1 (Rating)
|
Supplier 2 (Rating)
|
Supplier 3 (Rating)
|
|
Labor
|
0.1
|
5
|
4
|
5
|
|
Technology
|
0.4
|
3
|
4
|
4
|
|
Logistics
|
0.3
|
3
|
5
|
3
|
|
Management
|
0.2
|
5
|
4
|
3
|
Which supplier should the company choose? Please provide the overall ratings of each supplier for full credit. For each overall rating, please provide at least one step of calculation.
Q3. Montclair Electronics is currently producing 1 million video telephones a year at the New Jersey plant, where fixed costs amount to $5 million a year and the variable cost per unit is $20. By outsourcing the production to a foreign manufacturer, Montclair Electronics would be able to reduce the variable cost per unit to $15.
a) Suppose the annual fixed cost to be incurred at the foreign facility is $9 million. What is the break-even quantity in this case? Please provide the formula, at least one step of calculation, and the correct answer for full credit.
b) Should Montclair Electronics outsource? State the reason.
Q4. Suppose the revenue for a firm is $8,000,000. Its cost of goods sold is $200,000, and its average inventory value for the year is $100,000.
a) What is the firm's inventory turnover? Please include the formula, at least one step of calculation, and the correct answer for full credit.
b) What is the weeks-of-supply of the firm? Please include the formula, at least one step of calculation, and the correct answer for full credit.