Instructions:
Please
answer the assignment questions in this docx file and save once you’re
satisfied. Assignment 3 covers the lectures slides on Supply Chain Management.
There are three assignment problems. Please
follow the instructions given at the end of each question if any.
To resubmit
your assignment, simply click to open “Assignment 3” again and click the grey
button “Start New Submission” on the upper right corner of the “Review
Submission History” webpage you’re directed to. You can make as many
submissions as you like before the due time. Only the
last submission will be graded.
Assignment Problems (26 points in total):
Please cite an
example of forward vertical integration and an example of backward vertical
integration. Avoid the cases cited in
the textbook and lecture slides. (6 points)
Company X can
purchase a certain component from either Supplier A or Supplier B. Supplier A
offers an incremental quantity discount and charges $10 per unit for the first
1,000 units in an order, $9 per unit for the next 1,000 units in the order, and
$8 per unit for any unit beyond. Supplier B offers an all-unit discount and
charges $9 per unit for orders of no more than 2,000 units and $8.5 per unit
for any bigger orders.
(a) Suppose
Company X decides to buy 2,500 units from Supplier A. What is the average unit
cost of the order? Please provide at
least one step of calculation and the correct answer for full credit. (4
points)
(b) If
Company X wants to place an order of 5,000 units, which supplier offers a lower
total cost. Please provide at least one
step of calculation and the correct answer for full credit. (4 points)
Suppose the
revenue for a firm is $2,000,000. Its cost of goods sold is $85,000, and its
average inventory value for the year is $50,000.
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. (6 points)
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. (6 points)
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