Reference no: EM132039944

Assignment 1:

What are the risks associated with backdoor (maverick) buying and selling, and why is there interest in controlling this practice?

These are the talking points that are required:

I need a real-life example to be utilized, and these talking points are essential - Inability to get bulk discounts on buying or take advantages of rebates since internal users will tend to buy small quantities and not leverage the size of the company's needs.

Purchasers need to control costs Too many orders for purchasing to keep track from various vendors/suppliers Too many suppliers supplying the same products causing confusion to purchasing and A/P for payment or no P.O issued (ie. Buying on credit card) Breakings agreed upon contracts with approved vendors results in Lost trust from approved vendors making it difficult to negotiate contract terms, Overall increases in capital expenses, efficiency Exposes firm to greater risks and loss of control over the purchasing process. Inventory costs increase with increased stock.

Can you please review the grammar, some of your sentences are incomplete or do not make sense the way they are written. For example, the very first one.

No title page no page numbers just answer the questions in discussion format.

Assignment 2:

Complete the following at the end of Chapter 2:

Read Case 2-1 "Just-in-Time in Kalamazoo".

Choose 3 questions from the end of the case study. Answer each question in a Microsoft Word document. Each question answer should be at least 150 words in length.

Label each question according to the case study and question number, i.e. Case 2-1, question 1.

Case study attached below

Questions

What is the total annual cost of maintaining the components inventory under the present system?

What would be the total annual cost of maintaining the components inventory under the JIT system (assuming no safety stocks)?

Should Ballenger take into account any other costs or benefits from the JIT system? If so, what are they?

If the JIT system is adopted, are there safety stocks of any item that should be maintained? If so, which ones and how much? If the JIT system is adopted, what changes, if any, should occur in the relationships between Ballenger's firm and his suppliers of components? Discuss.

Assume that Ballenger has switched to the JIT system and that he receives a surprise phone call from a competitor who is going out of business. The competitor wants to sell Ballenger 7,000 dome lights of the type listed in Exhibit 2.A.

Should Ballenger buy them? If so, at what price? Carrying costs are 20 percent. Is there a level of carrying costs at which both Ballenger's present system and a JIT system have similar costs? If so, what is it?

Attachment:- Case Study.rar