PE DEV LTD is a local company outsourced by manufacturing companies both local and international to produce engineering graphics of their designs. The management of the company is considering switching from manual drawings to computer-aided drawing (CAD). They are however not sure if it would be a good idea. Justify if it’s a good decision by providing the challenges and gains

PE DEV LTD is a local company outsourced by manufacturing companies both local and international to produce engineering graphics of their designs. The management of the company is considering switching from manual drawings to computer-aided drawing (CAD). They are however not sure if it would be a good idea. Justify if it’s a good decision by providing the challenges and gains

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

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Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?
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Walton, Inc. is unsure whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $32, while the cost of assembling each unit is estimated at $34. Unassembled units can be sold for $110, while assembled units could be sold for $142 per unit. What decision should Walton make?
Tulu’s company has introduced a new line of products. She has been tasked to develop a new training programme to teach trainees about price guarantees, discounts and latitude on pricing for the new line that they have to sell. This scenario BEST describes which ONE of the following training programme topics that she will be developing? A. Product and service knowledge B. Employee handling skills C. The organisation and its procedure knowledge D. Customer and market knowledgeable
For each of the following problems, (a) draw the cash flow diagram; (b) present clean and clear manual solutions to the problem; (c) highlight the final answer (only the final answer as required by the problem) by enclosing it within a box. The following are five proposed projects being considered by an engineer in an integrated transportation company for upgrading an intermodal shipment transfer facility for less than truckload lots of consumer goods. The interrelationships among the projects, and their respective cash flows for the coming budgeting period are shown. Some of the projects are mutually exclusive. Also, certain projects are dependent of others that may be included in the final portfolio. Using the PW method and MARR=10%, determine what combination of projects is best if the capital to be invested is limited to $48,000. Projects B1 and B2 – mutually exclusive Projects C1 and C2 – mutually exclusive and contingent on the acceptance of B2 Project D – contingent on…
ABC company plans to produce a new line of laptop computers. Management wants to decide either to purchase keyboard for the new computers from an outside supplier or to manufacture them in the factory. If they buy from the supplier each keyboard will cost 100$. However, if they set up the assembly process required within the company it will cost an initial investment of $100,000. After the set up company can produce each keyboard in the factory for $75. Calculate the break-even point. Comment which option is better below and above the break-even point.
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