Suppose you are planning to use single sourcing and have narrowed down the choices to four suppliers A, B, C and D. Your criteria for selection are price (min), company size in market capitalization in millions of dollars (max), and quality on a scale of 1 to 100 (max). The relevant data are given in […]
A company needs two parts, A and B, for its product. It can either buy them from another company, or can make them in its own plant, or do both. The costs of each alternative and the in-house production rates are given in Table 5.40. The company must have at least 100 units of part […]
Demand is normally distributed with a mean of 500 and a standard deviation of 200. Newsvendor assumptions hold. The selling price per unit is $400, cost per unit is $200, and salvage per unit is $40. Determine the optimal order quantity. How would your answer change if the salvage value were $0? Demands over time […]
In this case study, you will be working on a supplier ranking problem. It is an actual application for a manufacturing company located in Tijuana, Mexico. Because of confidentiality issues, the data given here have been disguised. The supplier selection criteria and subcriteria have been defined by the Purchasing Manager as shown in Figure 5.12. […]
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