Explain what price would you try to negotiate, Operation Management

Assignment Help:

You have just received 10 units of a special sub assembly from an electronics manufacturer at a price of $250 per unit. A new order has also just come in for your computer's product that uses these sub-assemblies, and you wish to purchase 40 more to be shipped in lots of 10 units each. (The sub-assemblies are bulky and you need only 10 a month to fill your new order.) A. Assuming a 70% learning curve by your supplier on a similar product last year, how much should you pay for each lot? Assume that the learning rate of 70% applies to each lot of 10 units, not each unit. B. Suppose you are the supplier and can product 20 units now, but cannot start production on the second 20 units for two months. What price would you try to negotiate for the last 20 units?


Related Discussions:- Explain what price would you try to negotiate

Explain long-term relationship between the inventory, The long-term relatio...

The long-term relationship between the inventory, throughput, and flow time of a production system in steady state is called which of the following?

Explain increase system transportation costs, A firm that has recently expe...

A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the th

Explain what are the major problem issues facing sandy, After reading the C...

After reading the Concluding Case entitled "Barbara's World of Windows, Fabrics, and Accessories", what are the major problem issues facing Sandy, and what specific recommendations

Define the operations strategy, What is operations strategy?  Answer: Op...

What is operations strategy?  Answer: Operations strategy is the plan and actions taken at operational level to support and implement the business strategy. An operations strate

Process design, Process Design New product is not realities unit they...

Process Design New product is not realities unit they are manufactured. Process design is necessary to manufacture new products. Process design is concerned with the overall

Explain is the petterson operations successful, Carrington inc is an intern...

Carrington inc is an international company engaged in the production and distribution of pharmaceutical is the petterson operations successful? To the degree that it can be judged

Explain best decision based on an expected monetary value, The product desi...

The product design group of Flores Electrick Supplies, Inc., has determined that it needs to design a new series of switches. It must decide on one of three design strategies. The

What are the advantages of the chase demand strategies, What are the advant...

What are the advantages of the chase demand strategies? The advantages of the chase demand strategies are as illustrated below: a. Flexible utilisation of resources for inst

Explain malcolm baldrige national quality award, "Malcolm Baldrige National...

"Malcolm Baldrige National Quality Award" Please respond to the following Discuss the standout features of the companies approaches to managing operations. Discuss the attribute

Capacity planning and control , Analyse a given situation and select a capa...

Analyse a given situation and select a capacity planning and control approach

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd