The U.S. Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air- conditioning systems. These filters are made in a single plant located in Louisville, Kentucky, in the United States. They are distributed to retailers through wholesale centers in 100 locations in the United States, Canada, and Europe. You have collected the following data relating to the value of inventory in the U.S. Airfilter supply chain: QUARTER 1 (JANUARY THROUGH MARCH) QUARTER 2 (APRIL THROUGH JUNE) QUARTER 3 (JULY QUARTER 4 (OCTOBER THROUGH SEPTEMBER) THROUGH DECEMBER) All amounts in millions of U.S. dollars Sales (total quarter): United states Canada Europe 458 370 140 124 73 39 594 412 132 121 22 16 Cost of goods sold (total quarter) 584 465 657 484 Raw materials at the Louisville plant (end-of-quarter) 98 50 61 85 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 182 172 132 278 Distribution center inventory (end-of-quarter): United states Canada Europe 48 48 51 39 15 19 15 25 7 5 5 15 7 7

The U.S. Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air- conditioning systems. These filters are made in a single plant located in Louisville, Kentucky, in the United States. They are distributed to retailers through wholesale centers in 100 locations in the United States, Canada, and Europe. You have collected the following data relating to the value of inventory in the U.S. Airfilter supply chain: QUARTER 1 (JANUARY THROUGH MARCH) QUARTER 2 (APRIL THROUGH JUNE) QUARTER 3 (JULY QUARTER 4 (OCTOBER THROUGH SEPTEMBER) THROUGH DECEMBER) All amounts in millions of U.S. dollars Sales (total quarter): United states Canada Europe 458 370 140 124 73 39 594 412 132 121 22 16 Cost of goods sold (total quarter) 584 465 657 484 Raw materials at the Louisville plant (end-of-quarter) 98 50 61 85 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 182 172 132 278 Distribution center inventory (end-of-quarter): United states Canada Europe 48 48 51 39 15 19 15 25 7 5 5 15 7 7

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

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
The U.S. Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air- conditioning systems. These filters are made in a single plant located in Louisville, Kentucky, in the United States. They are distributed to retailers through wholesale centers in 100 locations in the United States, Canada, and Europe. You have collected the following data relating to the value of inventory in the U.S. Airfiter supply chain: QUARTER 1 (JANUARY THROUGH QUARTER 2 (APRIL THROUGH JUNE) QUARTER 3 (JULY THROUGH QUARTER 4 (остовеR THROUGH MARCH) All amounts in millions of U.s. dollara SEPTEMBER) DECEMBER) Sales (total quarter): United states 354 358 530 378 Canada 98 148 123 44 153 21 Europe 65 40 Cost of goods sold (total quarter) 362 383 493 393 Raw materials at the Louiaville plant (end-of-quarter) 67 45 84 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 183 199 127 239 Distribution center inventory…
U.S. Airfilter has hired you as a supply chain consultant. The company makes air filters for residential heating and air-conditioning systems. These filters are made in a single plant located in Louisville, Kentucky, in the United States. They are distributed to retail- ers through wholesale centers in 100 locations in the United States, Canada, and Europe. You have collected the following data relating to the value of inventory in the U.S. Airfil- ter supply chain: Sales (total quarter): United States Canada Europe Cost of goods sold (total quarter) Raw materials at the Louisville plant (end-of-quarter) Work-in-process and finished goods at the Louisville plant (end-of-quarter) Distribution center inventory (end-of-quarter): United States Canada Europe QUARTER 1 QUARTER 3 (JULY THROUGH THROUGH MARCH) THROUGH JUNE) SEPTEMBER) QUARTER 2 (APRIL (JANUARY 300 75 30 280 50 100 25 10 5 350 60 33 295 40 105 27 11 4 405 75 20 340 55 120 23 15 5 QUARTER 4 (OCTOBER THROUGH DECEMBER) 375 70 15…
The U.S. Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air- conditioning systems. These filters are made in a single plant located in Louisville, Kentucky, in the United States. They are distributed to retailers through wholesale centers in 100 locations in the United States, Canada, and Europe. You have collected the following data relating to the value of inventory in the U.S. Airfilter supply chain: QUARTER 1 QUARTER 3 (JULY THROUGH QUARTER 4 QUARTER 2 (APRIL THROUGH JUNE) (JANUARY (OCTOBER THROUGH THROUGH MARCH) SEPTEMBER) DECEMBER) All amounts in millions of U.S. dollars Sales (total quarter): United states 356 532 552 436 Canada 130 127 116 151 Europe 42 34 49 24 Cost of goods sold (total quarter) 338 445 465 398 Raw materials at the Louisville plant (end-of-quarter) 93 49 79 89 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 194 175 127 176 Distribution center inventory…
Consider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer's demand over an 8-week period was 90 units each of the first 2 weeks, 220 units each of the second 2 weeks, 280 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is often the case in supply chains due to economies of scale, that total units are the same in each case, but firms further up the supply chain (away from the retailer) place larger, less frequent, orders. Week Retailer Manufacturer Supplier1 90 180 6202 90 0 03 220 440 04 220 0 05 280 560 1,3606 280 0 07 400 800 08 400 0 0 a) What is the bullwhip measure for the retailer? The bullwhip measure for the retailer is ??? (Enter your response rounded to two decimal places.) b) What is the bullwhip measure for the…
The U.S. Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air-conditioning systems. These filters are made in a single plant located in Louisville, Kentucky, in the United States. They are distributed to retailers through wholesale centers in 100 locations in the United States, Canada, and Europe. You have collected the following data relating to the value of inventory in the U.S. Airfilter supply chain: QUARTER 1(JANUARYTHROUGHMARCH) QUARTER 2(APRIL THROUGHJUNE) QUARTER 3(JULYTHROUGHSEPTEMBER) QUARTER 4(OCTOBERTHROUGHDECEMBER) All amounts in millions of U.S. dollars Sales (total quarter): United states 366 364 406 556 Canada 131 94 147 81 Europe 65 41 30 24 Cost of goods sold (total quarter) 354 315 372 424 Raw materials at the Louisville plant (end-of-quarter) 56 47 78 74 Work-in-process and finished goods at the Louisville plant…
Consider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer's demand over an 8-week period was 110 units each of the first 2 weeks, 190 units each of the second 2 weeks, 310 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is often the case in supply chains due to economies of scale, that total units are the same in each case, but firms further up the supply chain (away from the retailer) place larger, lessfrequent, orders. WEEK RETAILER MANUFACTURER SUPPLIER 1 110 220 600 2 110 3 190 380 4 190 5 310 620 1420 6 310 7 400 800 8 400 a) What is the bullwhip measure for the retailer? The bullwhip measure for the retailer is ______. (Enter your response rounded to two decimal places.) b) What is the bullwhip measure for the manufacturer? The bullwhip measure for the…
Consider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer's demand over an 8-week period was 110 units each of the first 2 weeks, 220 units each of the second 2 weeks, 280 units each of the third 2 weeks, and 400 units each of the fourth 2 weeks. The following table presents the orders placed by each firm in the supply chain. Notice, as is often the case in supply chains due to economies of scale, that total units are the same in each case, but firms further up the supply chain (away from the retailer) place larger, lessfrequent, orders. Week Retailer Manufacturer Supplier 1 110 220 660 2 110 3 220 440 4 220 5 280 560 1360 6 280 7 400 800 8…
Week 1 2 3 4 5 6 7 8 Retailer 110 110 190 190 310 310 410 410 Manufacturer 220 380 620 820 Supplier 600 1,440
The U.S. Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air-conditioning systems. These filters are made in a single plant located in Louisville Kentucky, in the United States. They are distributed to retailers through wholesale centers in 100 locations in the United States, Canada, and Europe. You have collected the following data to the value of inventory in the U.S. Airfilter supply chain. Qtr. 1 Qtr.2 Qtr. 3 Qtr. 4 (Jan-Mar) (Apr-Jun) (July-Sept) (Oct-Dec) All amounts in millions of U.S. dollars Sales (total quarter): United States 414 402 502 514 Canada…
Explain Microsoft Corporations fundamental supply chain analytics and how they can improve planning, decision-making, and execution in the supply chain by taking into consideration current and future strategic challenges and opportunities for supply chain.