100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
MGT 301 EXAM 2 || ALL ANSWERS ARE CORRECT 100%. $10.99   Add to cart

Exam (elaborations)

MGT 301 EXAM 2 || ALL ANSWERS ARE CORRECT 100%.

 5 views  0 purchase
  • Course
  • MGT 301
  • Institution
  • MGT 301

Compute freight costs based on weight (in tons), distance and freight rate (based on full truck load or partial truck load): correct answers Freight cost = D x Wt x Rt D = Distance Wt = Annual weight in tons = R*w/2000 lbs/ton R = Rate (Freight cost in ton-miles) Compute inventory holding c...

[Show more]

Preview 2 out of 7  pages

  • September 12, 2024
  • 7
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • MGT 301
  • MGT 301
avatar-seller
FullyFocus
MGT 301 EXAM 2 || ALL ANSWERS ARE CORRECT
100%.
Compute freight costs based on weight (in tons),
distance and freight rate (based on full truck load or partial
truck load): correct answers Freight cost = D x Wt x Rt
D = Distance
Wt = Annual weight in tons = R*w/2000 lbs/ton
R = Rate (Freight cost in ton-miles)

Compute inventory holding costs after determining average inventory: correct answers Annual
Holding cost= (Q/2)kc = (order quantity/2)(holding cost)(purchase cost)
Annual Order Cost= (R/Q)s = (annual requirements/order quantity) (cost of placing 1 order)
Annual Purchasing Cost = R*C = annual requirements * Purchase cost

- Compute the cost impact from payment terms and explain in your own language why this
represents a cost savings to the buyer. correct answers Working Capital Savings: Annual
purchase $ X (rate X Payment days/360 + discount)
Example: (remember
Net 30 = $6M x (10% x 30/360 + 0%) = $50,000
2% 10 = $6M x (10% x 10/360 + 2%) = $136,667

List the primary goals of purchasing correct answers 1. Ensure uninterrupted flows of raw
materials and services at the lowest total cost
2. Improve quality of the finished goods and services produced
3. Optimize customer satisfaction
Contributions to goals:
- Actively seeking better materials, services, and reliable suppliers
- Work closely with strategic suppliers to improve quality materials and services
- Involving suppliers and purchasing personnel in new product process, service design, and
development efforts

Explain why companies must effectively manage small dollar purchases: correct answers
Smaller purchases add up more, those small purchases need to be carefully monitored.

List the reasons why a company chooses to outsource an item and the reasons for making it:
correct answers Outsourcing allows a firm to:
• Concentrate on core capabilities
• Reduce staffing levels
• Accelerate reengineering efforts
• Reduce management problems
• Improve manufacturing flexibility.
Reasons for Making or Insourcing
• Protect proprietary technology
• No competent supplier

, • Better quality control
• Use existing idle capacity
• Control of logistics- lead-time transportation, and warehousing cost
• Lower cost

List the reasons for having a single supplier and the reasons for having more than 1 supplier and
explain in your own words the benefits that preferred suppliers provide customers: correct
answers Reasons Favoring a Single Supplier
• To establish a good relationship
• Less quality variability
• Lower cost
• Transportation economies
• Proprietary product or process
• Volume too small to split
Reasons Favoring More Than One Supplier
• Need capacity
• Spread risk of supply interruption
• Create competition
• Information
• Dealing with special kinds of business

identify the criteria for selecting suppliers: correct answers • Product and process technologies
• Willingness to share technologies and information
• Quality
• Cost
• Reliability/Price
• Order System and cycle time
• Capacity
• Communication capability
• Location
• Service

- List the keys to successful supplier partnerships and explain the importance of metrics and
continuous improvement for supplier relationship management: correct answers - Shared vision
and objectives
- Personal Relationships
- Mutual Benefits and Needs
- Commitment and Top Management support
- Change management
- Information sharing & lines of communication
- Capabilities
Metrics :1) understandable, 2) easy to measure, and 3) focused on real value-added results
Continuous improvement: Buyers and suppliers must be willing to continuously improve their
capabilities in meeting customer requirements of cost, quality, delivery, and technology.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79373 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$10.99
  • (0)
  Add to cart