Please do not give solution in image format thanku Oftentimes businesses need to consider additional costs beyond simply the price of a good orservice when considering between two suppliers of an item. This perspective, considering more thanjust the price of the good or service purchased, is called the Total Cost of Ownership. Companiesoften should and do consider many more costs than we will consider in the following example.Purple Reign, an apparel manufacturer located in Minneapolis, sources the fabric used for clothesfrom outside vendors. Recently, Purple Reign has decided to compare pricing on a black roll of fabricused to manufacture 10,000 t-shirts. Purple Reign must decide between a fabric provider located inBangladesh versus one located in Graniteville, South Carolina. Use the chart below to find a TCOfrom each provider to help Purple Reign decide which provider should be utilized to provide theblack fabric.Cost of FabricTransportationFreight movementCustoms DutiesOrdering CostsQuality Costs (i.e.scrap/rework)PROVIDERBangladeshGreater than $3,400$ 1,250.00 $ 3,000.00Graniteville, SC$ 1,750.00 $$150.00 $150.00 $Less than or equal to 3,000Greater than $3,000 but less than or equal to $3,200Greater than $3,200 but less than or equal to $3,400375.0050.002.5% of cost of fabric 1% of cost of fabricWhat is the TCO of the provider that offers Purple Reign the lowest cost to acquire the black fabric?

Let's calculate the Total Cost of Ownership (TCO) for each provider again.For the Bangladesh…

liers of an item. This perspective, considering ed, is called the Total Cost of Ownership. Com sts than we will consider in the following exam ed in Minneapolis, sources the fabric used for has decided to compare pricing on a black ro Reign must decide between a fabric provider e, South Carolina. Use the chart below to find ide which provider should be utilized to provic 0.00 Graniteville, SC $ 3,000.00

liers of an item. This perspective, considering ed, is called the Total Cost of Ownership. Com sts than we will consider in the following exam ed in Minneapolis, sources the fabric used for has decided to compare pricing on a black ro Reign must decide between a fabric provider e, South Carolina. Use the chart below to find ide which provider should be utilized to provic 0.00 Graniteville, SC $ 3,000.00

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter2: The Purchasing Process

Section: Chapter Questions

Problem 1GPE

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A 30-minute massage at Massage Envy costs on average about $50. A massage at The Woodhouse Day Spa in contrasts costs about $125 for a 30-minute massage. Unlike physical products whose price is largely dependent on the quality of materials used to produce it, the price of services is often harder to determine What can contribute to the price disparity in the example above? Include in your discussion the characteristics of services discussed in Chapter 13 and presented in the video clips in this module.
At the Clorox Company, many new products are developed in conjunction with supply partners. When the company wanted to develop a line of surface-protecting cleaning products, it partnered with specialty chemical companies to develop products that could protect surfaces as sensitive as Teﬂon. Discuss identification stage of procurement with reference to this scenario. Identification Stage of procurement: Identifying Goods or Services needed is the 1st stage of procurement. Before the company can have something procured, there ha Do you think the role of supply partners as Earlier Supplier Involvement (ESI)? Mention the keynotes from ESI that can be generalized to any buying organization.
Describe what you are selling (1 item only): What is the price you will sell at to sustomer: How will you explain to potential customers WHY they should buy your product? If your total costs to run the company is $5,000 per month, how many do you have to sell each month to cover your costs? Show your calculation! Do you think this is a realistic number to achieve each month? Explain your answer. In case sales go slower than expected, come up with a volume discount offer for customers and describe how it will work in the box below: (for example if you buy 5 items instead of 1, you will give customer a 10% discount).
Assume that you are the Purchasing Manager recently joined to a manufacturing company which consistswith several functional divisions. You are reporting to the Managing Director of the company. The companyhas been implementing a purchasing strategy with less coordination with the other functional groups withinthe company. Moreover, there has been no coordination with its suppliers. As a qualified person with aMBA in supply chain management, you identified that it is required to do changes in many areas, especiallythe integration and collaboration of functional divisions when developing purchasing strategies. Write aone-page memo to the Managing Director outlining the benefits of having regular meetings between theheads of design, marketing, production and yourself when implementing the purchasing strategy. Indicatethe possible advantages of involving suppliers in the preparation of specifications for bought-out items andon developing new products. Describe at least four benefits of…
Assume that you are the Purchasing Manager recently joined to a manufacturing company which consistswith several functional divisions. You are reporting to the Managing Director of the company. The companyhas been implementing a purchasing strategy with less coordination with the other functional groups withinthe company. Moreover, there has been no coordination with its suppliers. As a qualified person with aMBA in supply chain management, you identified that it is required to do changes in many areas, especiallythe integration and collaboration of functional divisions when developing purchasing strategies. Write aone-page memo to the Managing Director outlining the benefits of having regular meetings between theheads of design, marketing, production and yourself when implementing the purchasing strategy. Indicatethe possible advantages of involving suppliers in the preparation of specifications for bought-out items andon developing new products.
A retailer wants to understand the relationship between the sales units (in number of units) of a new product and its price. Now, which types of model can be considered to answer the above firm issue?
Some high-fashion retailers, notably H&M and Zara, sell what some call“disposable fashion”—apparel priced so reasonably low that it can bedisposed of after just a few wearings. Here is your dilemma: You havean important job interview and need a new suit. You can buy the suit atone of these stores for $129 or at Brooks Brothers for $500. Of course,the Brooks Brothers suit is of higher quality and will therefore lastlonger. How would you use the two value-based approaches describedin this chapter to determine which suit to buy?
Table 1 illustrates a typical traditional procurement process. This process is for relatively low- value items that do not need authorisation by a senior manager. Develop the new e-procurement process in table 2.
Retail stores often use in-store shelf-tags that alert shoppers to price savings by posting a product's "original" price next to its "sale" price. Why would firms do this? O It is done to remind consumers that the price reduction is a cash discount. O It is done for inventory purposes. When conducting end-of-year inventorying, the retailer can easily recall the price the product sold throughout the year. O It is a form of "bait-n-switch" advertising, designed to encourage consumers to buy a more expensive product alternative than the one on sale. O It helps establish an internal reference price for consumers. O Because it is required by law. The U.S. government requires retailers to state the original price in all of its in-store price promotions.
Match the following component of a Porter’s 5 Forces analysis to the correct description: Supplier power The ability of customers to influence the price which firms can charge for good/service The number of firms offering a directly related product and the intensity of competition between them and the focal firm The ease with which consumers can switch to a related, but different, good/service in place of the products offered by the company How difficult is it for new firms to join the industry The extent to which distributors can influence the cost of inputs for the firm
The price change decisions in a supply chain are solely decided by a retailer. True or False? Explain your answer briefly. What is the impact on profit and inventory by running a promotion in the peak demand periods vs. low demand period?
Good morning please help me with this question When you read the above , it becomes clear a well-defined procurement strategy and good inventory management can deliver supply chain success and could ultimately lead to profitability and growth. In a report, you are required to critique the strategic importance of procurement and the roles of inventory in the supply chain (balancing supply and demand and Buffering against uncertainties) in relation to Apple. please add reference if you can thank you