Advertising and New Customers

2108 words 9 pages
1) Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity, and no one supplier can meet all the company’s needs. In addition, the suppliers charge different prices for the components. Supplier
Component 1 2 3 1 $12 $13 $14 2 $10 $11 $10
Each supplier has a limited capacity in terms of the total number components it can supply. However, as long as Edwards provides sufficient advance orders, each supplier can devote its capacity to component 1, component 2, or any combination of the two compoents, if the total number of units ordered is within its capacity.
Supplier 1 2 3
Capacity 600 1000 800
If the Edwards production plan for the next period
…show more content…

The cost of each meter produced at the El Paso plant is $10.50. The San Bernardino plant utilizes newer and more efficient; as a result, manufacturing costs are $.50 per meter less than at the El Paso plant. The company's rapid growth meant that not much attention was paid to the efficiency of the distribution system. Darby's management decided it is now time to address this issue. The cost of shipping a meter from each of the two plants to each of the three distribution centers is shown in Table 1 below. The quarterly production capacity is 30,000 meters at the older El Paso plant and 20,000 meters at the San Bernardino plant. Note that no shipments are allowed from the San Bernardino plant to the Ft. Worth distribution center. The company serves nine customer zones from the three distribution centers. The forecast of the number of meters needed in each customer zone for the next quarter is shown in Table 2.The cost per unit of shipping from each distribution center to each customer zone is given in Table 3. Note that some of the distribution centers cannot serve certain customer zones. In the current distribution system, demand at the Dallas, San Antonio,
Wichita, and Kansas City customer zones is satisfied by shipments from the Ft. Worth distribution center. In a similar manner, the Denver, Salt Lake City, and Phoenix customer zones are served by the Santa Fe distribution, and the Los Angeles and San Diego customer zones

Related

  • Market Management
    4340 words | 18 pages
  • Free Essay Home Depot History and Business Case Analysis
    1748 words | 7 pages
  • Wgu C212 Marketing Vvt2 Task 1
    1836 words | 8 pages
  • Mandarin Oriental
    2466 words | 10 pages
  • Walmart vs. Target
    3767 words | 16 pages
  • Effective Advertising Planning and Implementation Paper
    1435 words | 6 pages
  • To What Extent Unethical Marketing Technique Could Damage the Sustainable Business Enivironment
    2647 words | 11 pages
  • Lowes Case
    7379 words | 30 pages
  • “the Impact of Celebrity Endorsement on a Customer’s Buying Behaviour”
    2575 words | 11 pages
  • Justus Case
    1262 words | 6 pages