Deck 14: Supply Chain Processes

Question 1

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:


-Calculate the total cost of ownership (TCO) for the Ingersoll-Rand compressor, with an annual discount rate of 12%.

A)-$52,541
B)-$43,378
C)-$55,105
D)-$41,385
E)-$45,539

Answer 1

-$41,385

Question 2

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:


-Calculate the total cost of ownership (TCO) for the DeWalt compressor, with an annual discount rate of 12%.

A)-$52,541
B)-$57,887
C)-$43,378
D)-$41,385
E)-$55,105

Answer 2

-$52,541

Question 3

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:


-Calculate the total cost of ownership (TCO) for the DeWalt compressor, with an annual discount rate of 12%, and the total cost of ownership (TCO) for the Ingersoll-Rand compressor, with an annual discount rate of 12%. Which model should be purchased based on these calculations?

A)Ingersoll-Rand product
B)DeWalt product
C)Either one can be purchased.
D)Neither, since both will incur enormous loss.
E)Need additional information to decide

Answer 3

Ingersoll-Rand product

Question 4

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:


-Calculate the total cost of ownership (TCO) for the Ingersoll-Rand compressor, with an annual discount rate of 8%.

A)-$52,541
B)-$43,378
C)-$55,105
D)-$41,385
E)-$45,539

Question 5

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:


-Calculate the total cost of ownership (TCO) for the DeWalt compressor, with an annual discount rate of 8%.

A)-$52,541
B)-$57,888
C)-$43,378
D)-$41,385
E)-$55,105

Question 6

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:


-Calculate the total cost of ownership (TCO) for the Ingersoll-Rand compressor, with an annual discount rate of 8%. Calculate the total cost of ownership (TCO) for the DeWalt compressor, with an annual discount rate of 8%. Which model should be purchased based on these calculations?

A)Ingersoll-Rand product
B)DeWalt product
C)Either one can be purchased.
D)Neither, since both will incur enormous loss.
E)Need additional information to decide

Question 7

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:


-Calculate the total cost of ownership (TCO) for the Ingersoll-Rand compressor, with an annual discount rate of 10%.

A)-$52,541
B)-$43,378
C)-$55,105
D)-$41,385
E)-$45,539

Question 8

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:


-Calculate the total cost of ownership (TCO) for the DeWalt compressor, with an annual discount rate of 10%.

A)-$52,541
B)-$57,887
C)-$43,378
D)-$41,385
E)-$55,105

Question 9

The Queen Enterprise wants to purchase a large rotary screw air compressor. The company has looked at models of two major manufacturers: Ingersoll-Rand and DeWalt. The projected cash flows for each are shown below:


-Calculate the total cost of ownership (TCO) for the Ingersoll-Rand compressor, with an annual discount rate of 10%. Calculate the total cost of ownership (TCO) for the DeWalt compressor, with an annual discount rate of 10%. Which model should be purchased based on these calculations?

A)Ingersoll-Rand product
B)DeWalt product
C)Either one can be purchased.
D)Neither, since both will incur enormous loss.
E)Need additional information to decide

Question 10

The Stark County executives are considering the purchase of new 130 hp bulldozer and are comparing two models: the BEHEMOTH and the GOLIATH. The BEHEMOTH bulldozer costs $130,000, with a projected annual operating and maintenance cost of $31,000 and a salvage value $15,000 after 7 years. The GOLIATH model costs $175,000, with a projected annual operating and maintenance cost of $22,000 and a salvage value of $21,000 after 7 years.

-Find the net present value of the BEHEMOTH compressor if the cash flows are discounted annually at 7%.

A)-$265,903
B)-$273,224
C)-$287,727
D)-$264,691
E)-$280,487

Question 11

The Stark County executives are considering the purchase of new 130 hp bulldozer and are comparing two models: the BEHEMOTH and the GOLIATH. The BEHEMOTH bulldozer costs $130,000, with a projected annual operating and maintenance cost of $31,000 and a salvage value $15,000 after 7 years. The GOLIATH model costs $175,000, with a projected annual operating and maintenance cost of $22,000 and a salvage value of $21,000 after 7 years.

-Find the net present value of the GOLIATH compressor if the cash flows are discounted annually at 7%.

A)-$265,903
B)-$273,224
C)-$287,727
D)-$264,691
E)-$280,487

Question 12

The Stark County executives are considering the purchase of new 130 hp bulldozer and are comparing two models: the BEHEMOTH and the GOLIATH. The BEHEMOTH bulldozer costs $130,000, with a projected annual operating and maintenance cost of $31,000 and a salvage value $15,000 after 7 years. The GOLIATH model costs $175,000, with a projected annual operating and maintenance cost of $22,000 and a salvage value of $21,000 after 7 years.

-Find the net present value of the BEHEMOTH compressor if the cash flows are discounted annually at 7%. Find the net present value of the GOLIATH compressor if the cash flows are discounted annually at 7%. Which model should be purchased based on these calculations?

A)BEHEMOTH
B)GOLIATH
C)Either one can be purchased.
D)Neither, since both will incur enormous loss.
E)Need additional information to decide

Question 13

The Stark County executives are considering the purchase of new 130 hp bulldozer and are comparing two models: the BEHEMOTH and the GOLIATH. The BEHEMOTH bulldozer costs $130,000, with a projected annual operating and maintenance cost of $31,000 and a salvage value $15,000 after 7 years. The GOLIATH model costs $175,000, with a projected annual operating and maintenance cost of $22,000 and a salvage value of $21,000 after 7 years.

-Find the net present value of the BEHEMOTH compressor if the cash flows are discounted annually at 12%.

A)-$265,903
B)-$273,224
C)-$287,727
D)-$264,691
E)-$280,487

Question 14

The Stark County executives are considering the purchase of new 130 hp bulldozer and are comparing two models: the BEHEMOTH and the GOLIATH. The BEHEMOTH bulldozer costs $130,000, with a projected annual operating and maintenance cost of $31,000 and a salvage value $15,000 after 7 years. The GOLIATH model costs $175,000, with a projected annual operating and maintenance cost of $22,000 and a salvage value of $21,000 after 7 years.

-Find the net present value of the GOLIATH compressor if the cash flows are discounted annually at 12%.

A)-$265,903
B)-$273,224
C)-$287,727
D)-$264,691
E)-$280,487

Question 15

The Stark County executives are considering the purchase of new 130 hp bulldozer and are comparing two models: the BEHEMOTH and the GOLIATH. The BEHEMOTH bulldozer costs $130,000, with a projected annual operating and maintenance cost of $31,000 and a salvage value $15,000 after 7 years. The GOLIATH model costs $175,000, with a projected annual operating and maintenance cost of $22,000 and a salvage value of $21,000 after 7 years.

-Calculate the net present value of the BEHEMOTH compressor and the net present value of the GOLIATH compressor, with the cash flows discounted annually at 12%. Which model should be purchased?

A)BEHEMOTH
B)GOLIATH
C)Either one can be purchased.
D)Neither, since both will incur enormous loss.
E)Need additional information to decide

Question 16

The KANKULIA Imaging Company is considering the purchase of new 3-D printer and is comparing two models: the HK Affinity A17 and the Roland ARM-10. The A17 bulldozer costs $14,999, with a projected annual operating and maintenance cost of $1,650 and a salvage value $2,500 after 4 years. The ARM-10 model costs $6,995, with a projected annual operating and maintenance cost of $3,600 and a salvage value of $500 after four years.

-Find the net present value of the HK Affinity A17 model if the cash flows are discounted annually at 6%.

A)-$18,280
B)-$18,574
C)-$19,073
D)-$18,303
E)-$18,736

Question 17

The KANKULIA Imaging Company is considering the purchase of new 3-D printer and is comparing two models: the HK Affinity A17 and the Roland ARM-10. The A17 bulldozer costs $14,999, with a projected annual operating and maintenance cost of $1,650 and a salvage value $2,500 after 4 years. The ARM-10 model costs $6,995, with a projected annual operating and maintenance cost of $3,600 and a salvage value of $500 after four years.

-Find the net present value of the Roland ARM-10 model if the cash flows are discounted annually at 6%.

A)-$18,280
B)-$18,574
C)-$19,073
D)-$18,303
E)-$18,736

Question 18

The KANKULIA Imaging Company is considering the purchase of new 3-D printer and is comparing two models: the HK Affinity A17 and the Roland ARM-10. The A17 bulldozer costs $14,999, with a projected annual operating and maintenance cost of $1,650 and a salvage value $2,500 after 4 years. The ARM-10 model costs $6,995, with a projected annual operating and maintenance cost of $3,600 and a salvage value of $500 after four years.

-Find the net present value of the HK Affinity A17 model if the cash flows are discounted annually at 6%. Find the net present value of the Roland ARM-10 model if the cash flows are discounted annually at 6%. Which model should be purchased based on the calculations?

A)HK Affinity A17
B)Roland ARM-10
C)Either one can be purchased.
D)Neither, since both will incur enormous loss.
E)Need additional information to decide

Question 19

The KANKULIA Imaging Company is considering the purchase of new 3-D printer and is comparing two models: the HK Affinity A17 and the Roland ARM-10. The A17 bulldozer costs $14,999, with a projected annual operating and maintenance cost of $1,650 and a salvage value $2,500 after 4 years. The ARM-10 model costs $6,995, with a projected annual operating and maintenance cost of $3,600 and a salvage value of $500 after four years.

-Find the net present value of the HK Affinity A17 model if the cash flows are discounted annually at 9%.

A)-$18,280
B)-$18,573
C)-$19,073
D)-$18,303
E)-$18,736

Question 20

The KANKULIA Imaging Company is considering the purchase of new 3-D printer and is comparing two models: the HK Affinity A17 and the Roland ARM-10. The A17 bulldozer costs $14,999, with a projected annual operating and maintenance cost of $1,650 and a salvage value $2,500 after 4 years. The ARM-10 model costs $6,995, with a projected annual operating and maintenance cost of $3,600 and a salvage value of $500 after four years.

-Find the net present value of the Roland ARM-10 model if the cash flows are discounted annually at 9%.

A)-$18,280
B)-$18,574
C)-$19,073
D)-$18,304
E)-$18,736

Question 21

The KANKULIA Imaging Company is considering the purchase of new 3-D printer and is comparing two models: the HK Affinity A17 and the Roland ARM-10. The A17 bulldozer costs $14,999, with a projected annual operating and maintenance cost of $1,650 and a salvage value $2,500 after 4 years. The ARM-10 model costs $6,995, with a projected annual operating and maintenance cost of $3,600 and a salvage value of $500 after four years.

-Find the net present value of the HK Affinity A17 model if the cash flows are discounted annually at 9%. Find the net present value of the Roland ARM-10 model if the cash flows are discounted annually at 9%. Which model should be purchased based on these calculations?

A)HK Affinity A17
B)Roland ARM-10
C)Either one can be purchased.
D)Neither, since both will incur enormous loss.
E)Need additional information to decide

Question 22

A used tower crane has an initial cost of $250,000. In Year 3 and Year 6, the equipment will require major maintenance, at a cost of $16,000 each time. The annual operating cost for the equipment is $24,000, and it has a salvage value of $33,000 in Year 9.

-Find the net present value of the equipment if the cash flows are discounted annually at 7%.

A)-$412,138
B)-$395,374
C)-$372,575
D)-$385,473
E)-$406,201

Question 23

A used tower crane has an initial cost of $250,000. In Year 3 and Year 6, the equipment will require major maintenance, at a cost of $16,000 each time. The annual operating cost for the equipment is $24,000, and it has a salvage value of $33,000 in Year 9.

-Find the net present value of the equipment if the cash flows are discounted annually at 12%.

A)-$412,138
B)-$395,374
C)-$372,575
D)-$385,472
E)-$406,201

Question 24

Robinson Crusoe was trying to decide if they should continue making candy machines or outsource to a supplier. Their fixed costs to make them in house were $3,750, and the variable costs were $1.35 per unit. One of their suppliers in Mexico made a similar product for $5.75 per unit.

-Calculate the break-even point.

A)594 units
B)852 units
C)652 units
D)2,778 units
E)15,972 units

Question 25

Robinson Crusoe was trying to decide if they should continue making candy machines or outsource to a supplier. Their fixed costs to make them in house were $3,750, and the variable costs were $1.35 per unit. One of their suppliers in Mexico made a similar product for $5.75 per unit.

-If Robinson needed 600 units, calculate their make cost.

A)$5,750
B)$5,100
C)$3,450
D)$4,560
E)$4,900

Question 26

Robinson Crusoe was trying to decide if they should continue making candy machines or outsource to a supplier. Their fixed costs to make them in house were $3,750, and the variable costs were $1.35 per unit. One of their suppliers in Mexico made a similar product for $5.75 per unit.

-If Robinson needed 600 units, calculate their buy cost.

A)$5,750
B)$5,100
C)$3,450
D)$4,560
E)$4,900

Question 27

Robinson Crusoe was trying to decide if they should continue making candy machines or outsource to a supplier. Their fixed costs to make them in house were $3,750, and the variable costs were $1.35 per unit. One of their suppliers in Mexico made a similar product for $5.75 per unit.

-If Robinson needed 600 units, which option should be preferred?

A)Choose to make in house
B)Order from the supplier in Mexico
C)Either, since both have the same costs.
D)Neither, since both will incur enormous losses to the company's operations.
E)Need additional information to decide

Question 28

Robinson Crusoe was trying to decide if they should continue making candy machines or outsource to a supplier. Their fixed costs to make them in house were $3,750, and the variable costs were $1.35 per unit. One of their suppliers in Mexico made a similar product for $5.75 per unit.

-If Robinson needed 1,000 units, which option should be preferred?

A)Choose to make in house
B)Order from the supplier in Mexico
C)Either, since both have the same costs
D)Neither, since both will incur enormous loss to the company's operations
E)Need additional information to decide

Question 29

The Wonderful Manufacturing Co. is considering the outsourcing of one of its standard parts to free up capacity for other, more important items. Wonderful makes the part for $13.50 and requires 30,000 of the parts per year, with a fixed-cost contribution of $4,000 per year. Their purchasing executives have identified one supplier that can make the part for $19 per unit but requires an up-front, one-time contractual fee of $1,250.

-Calculate the break-even point.

A)500 units
B)250 units
C)750 units
D)1,000 units
E)275 units

Question 30

The Wonderful Manufacturing Co. is considering the outsourcing of one of its standard parts to free up capacity for other, more important items. Wonderful makes the part for $13.50 and requires 30,000 of the parts per year, with a fixed-cost contribution of $4,000 per year. Their purchasing executives have identified one supplier that can make the part for $19 per unit but requires an up-front, one-time contractual fee of $1,250.

-If Wonderful needed 750 units, which option should be preferred?

A)Make in house at Wonderful
B)Order from the supplier in Mexico
C)Either, since both have the same costs.
D)Neither, since both will incur enormous losses to the company's operations
E)Need additional information to decide

Question 31

The Wonderful Manufacturing Co. is considering the outsourcing of one of its standard parts to free up capacity for other, more important items. Wonderful makes the part for $13.50 and requires 30,000 of the parts per year, with a fixed-cost contribution of $4,000 per year. Their purchasing executives have identified one supplier that can make the part for $19 per unit but requires an up-front, one-time contractual fee of $1,250.

-If Wonderful needed 425 units, which option should be preferred?

A)Make in house at Wonderful
B)Order from the supplier in Mexico
C)Either, since both have the same costs.
D)Neither, since both will incur enormous losses to the company's operations.
E)Need additional information to decide

Question 32

The Wonderful Manufacturing Co. is considering the outsourcing of one of its standard parts to free up capacity for other, more important items. Wonderful makes the part for $13.50 and requires 30,000 of the parts per year, with a fixed-cost contribution of $4,000 per year. Their purchasing executives have identified one supplier that can make the part for $19 per unit but requires an up-front, one-time contractual fee of $1,250.

-If Wonderful needed 500 units, which option should be preferred?

A)Make in house at Wonderful
B)Order from the supplier in Mexico
C)Either, since both have the same costs.
D)Neither, since both will incur enormous losses to the company's operations.
E)Need additional information to decide

Question 33

A weighted supplier scorecard is shown below. Use a 10-point scale. Note that excellent = 10.


-For the on-time deliveries criterion, calculate the rating on a scale of 0 through 10.

A)10.00
B)5.00
C)7.50
D)6.00
E)13.33

Question 34

A weighted supplier scorecard is shown below. Use a 10-point scale. Note that excellent = 10.


-For the pricing criterion, calculate the rating on a scale of 0 through 10.

A)10.00
B)4.00
C)6.00
D)7.50
E)13.33

Question 35

A weighted supplier scorecard is shown below. Use a 10-point scale. Note that excellent = 10.


-For the customer service criterion, calculate the rating on a scale of 0 through 10.

A)10.00
B)16.67
C)13.33
D)6.00
E)7.50

Question 36

A weighted supplier scorecard is shown below. Use a 10-point scale. Note that excellent = 10.


-For the order lead-time criterion, calculate the rating on a scale of 0 through 10.

A)10.00
B)5.00
C)13.33
D)16.67
E)20.00

Question 37

A weighted supplier scorecard is shown below. Use a 10-point scale. Note that excellent = 10.


-Determine the total weighted score for the supplier.

A)8.97
B)8.50
C)10.00
D)10.50
E)7.80

Question 38

A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent = 10, good = 8, fair = 6, poor = 4.


-Determine the total weighted score for the Supplier A.

A)9.12
B)8.23
C)10.00
D)9.01
E)Do not have enough information to compute

Question 39

A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent = 10, good = 8, fair = 6, poor = 4.


-Determine the total weighted score for the Supplier B.

A)9.12
B)8.23
C)10.00
D)9.01
E)Do not have enough information to compute

Question 40

A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent = 10, good = 8, fair = 6, poor = 4.


-Determine the total weighted score for the Supplier C.

A)9.12
B)8.23
C)10.00
D)9.01
E)Do not have enough information to compute

Question 41

A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent = 10, good = 8, fair = 6, poor = 4.


-Which of the following statement is NOT correct?

A)Supplier B has the highest rating among the three suppliers for the on-time performance criterion.
B)Suppliers B and C do not have the same rating for the meets quality check criterion.
C)For customer service, the rating for Supplier A is better than the rating for Supplier B.
D)For the pricing criterion, the rating for Supplier C is higher compared to Suppliers A and B.
E)For the order change request criterion, the rating for Supplier C is higher than that of Supplier A.

Question 42

A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers and which supplier would be preferred. Use a 10-point scale. Note that excellent = 10, good = 8, fair = 6, poor = 4.


-Which supplier would be preferred based on the total weighted score?

A)Supplier C
B)Supplier A
C)Supplier B
D)Neither, all of the suppliers have the same weighted score.
E)Do not have enough information to compute

Question 43

A weighted scorecard is used to compare three suppliers for a product, using a 10-point scale.


-Determine the total weighted score for Supplier A.

A)10
B)9.34
C)9.10
D)8.67
E)Do not have enough information to compute

Question 44

A weighted scorecard is used to compare three suppliers for a product, using a 10-point scale.


-Determine the total weighted score for Supplier B.

A)10
B)9.34
C)9.02
D)8.69
E)Do not have enough information to compute

Question 45

A weighted scorecard is used to compare three suppliers for a product, using a 10-point scale.


-Determine the total weighted score for Supplier C.

A)10
B)9.20
C)9.02
D)8.67
E)Do not have enough information to compute

Question 46

A weighted scorecard is used to compare three suppliers for a product, using a 10-point scale.


-Which of the following statements is NOT correct?

A)Supplier B has the lowest rating among the three suppliers for the customer service criterion.
B)Suppliers A and B do not have the same rating for the on-time performance criterion.
C)For the meets quality check criterion, the rating for Supplier C is better than the rating for Supplier A.
D)For the pricing criterion, the rating for Supplier A is higher compared to Suppliers B and C.
E)For the supplier contributions criterion, Supplier B has the highest rating among the three suppliers.

Question 47

A weighted scorecard is used to compare three suppliers for a product, using a 10-point scale.


-Which supplier would be preferred based on the total weighted score?

A)Supplier C
B)Supplier A
C)Supplier B
D)Neither, all of the suppliers have the same weighted score.
E)Do not have enough information to compute

Question 48

Bejeweled Manufacturing Company is evaluating two suppliers for a component sourcing. After much internal discussion, BMC's management has determined that the critical factors in choosing suppliers are quality, delivery, price, and service. Further, management has rated the importance of these factors as 0.4, 0.3, 0.2, and 0.1, respectively. On a scale of 1 to 5, Supplier A is rated at 5, 3, 3, and 3, respectively. Supplier B's ratings are 4, 4, 3, and 4. Which supplier has the better weighted score?

A)Supplier A
B)Supplier B
C)Neither, all of the suppliers have the same weighted score.
D)Do not have enough information to compute

Question 49

The following table contains the performance criteria and scores for four potential suppliers to Bonafide Industries. Evaluate the data, and identify the BEST source for Bonafide.

A)Company A
B)Company B
C)Company C
D)Company D
E)Do not have enough information to compute

Question 50

The following table contains a list of four companies that have been rated on three weighted performance dimensions. Which of the following statements regarding this information is BEST?

A)Compass is superior to Premier.
B)Premier is superior to Aramark.
C)Sodexo is superior to Compass.
D)Aramark is superior to Sodexo.
E)Do not have enough information to compute