Question 1

A company is deciding where to assign its summer intern. The manager estimates that the intern can save $10,000 in the supply chain or increase sales (revenue) by $25,000. If sales (revenue) is divided into the three categories shown in the table where should the manager assign the intern to maximize profits?
 $$\begin{array} { | l | l | l | l | } 
\hline & \begin{array} { l } 
\text { Supply Chain } \
\text { costs }
\end{array} & \begin{array} { l } 
\text { Variable Costs } \
\text { (materials) }
\end{array} & \text { Profits } \
\hline \% \text { of current } & & & \
\text { sales } \
\text { (revenue) } & 35 & 25 & 40 \
\hline
\end{array}$$

Accepted Answer

The answer of A company is deciding where to assign...

Question 2

A car dealer is trying to reduce the number of days of inventory held at any given time on the lot. Assume that he projects the daily sales rate as the last two months averaged. Assume that the monthly sales rate for August was 12 cars/day, September was 14 cars/day, October was 12 cars/day, and November was 8 cars/day. Given an inventory of 500 cars at the start of November and 400 at the start of December, determine the number of days of inventory on hand at the start of November and December (also assume each month has EXACTLY 30 days of sales).

Accepted Answer

The answer of A car dealer is trying to reduce...

Question 3

A container of ball-bearings valued at $25,000, currently located in Houston, TX, needs to be delivered to the Morton, IL, plant. The standard shipment method takes two days. However, for an additional charge of $500, the container can be sent overnight. The annual holding cost rate for this type of item has been estimated at 28%. What option is more economical?

Accepted Answer

The answer of A container of ball-bearings valued at $25,000,...

Question 4

A manufacturing plant had $.74 of raw materials, $.23 of in-progress inventory, and $1.03 of finished goods inventory at month's end. If monthly sales were $10, what is the turnover?
 (assume all units are in thousands, i.e. $1 is actually $1000)

Accepted Answer

The answer of A manufacturing plant had $.74 of raw...

Question 5

A company is deciding where to assign its summer intern. The manager estimates that the intern can save the company $10,000 in supply chain costs. What increase in sales (revenue) by the intern is required to show an equal profit?
 $$\begin{array} { | l | l | l | l | } 
\hline & \begin{array} { l } 
\text { Supply Chain } \
\text { costs }
\end{array} & \begin{array} { l } 
\text { Variable Costs } \
\text { (materials) }
\end{array} & \text { Profits } \
\hline \% \text { of current } & & & \
\text { sales } \
\text { (revenue) } & 35 & 25 & 40 \
\hline
\end{array}$$

Accepted Answer

The answer of A company is deciding where to assign...

Quiz 13: Supply-Chain Management

A manufacturing plant had $.74 of raw materials, $.23 of in-progress inventory, and $1.03 of finished goods inventory at month's end. If monthly sales were $10, what is the turnover? (assume all units are in thousands, i.e. $1 is actually $1000)