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 what makes one campaign better than the other, Suppose that a small...

Suppose that a small publisher selling to book distributors has fixed operating costs of $600,000 each year and variable costs of $3.00 per book. How many books must the firm sell

Explain original linear programming problem, Create your own original Linea...

Create your own original Linear Programming problem with a minimum of two variables and two constraints. Your problem should be presented in paragraph form and reflected in a LP eq

Case study answer , After working for 30 years, Ramjee Somjee Dutt opted fo...

After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did very well in the first four years. He was now looking for expansion of his busine

Explain how the market value of the shares, St James Ltd. Has just paid a d...

St James Ltd. Has just paid a dividend of £0.22 per share. The market expects this dividend to grow constantly in each future year at the rate of 7% p.a. The cost of capital for St

Explain the project charter, Which of the following documents serves as an ...

Which of the following documents serves as an informal contract between the project team and the project sponsor? A. The team members employment contracts B. The project char

Explain objective of value stream mapping is to improve data, 1) Bill of ma...

1) Bill of material errors can cause serious problems for MRP system calculations of dependant demands 2) No matter what forecasting technique is used, the probability of a prod

Process design of operations in an organization, 1.  Investigate: Consider ...

1.  Investigate: Consider the operations of your own organisation (or another with which you are familiar) and report on how its operational processes are designed. From your readi

Important of production planning, Important of Production Planning The i...

Important of Production Planning The importance of production planning maybe judged form the following facts. 1. Production Planning Sets Objectives: Production planning se

Evaluate the servicescape dimensions, Question: (a) Services are usuall...

Question: (a) Services are usually produced and consumed simultaneously, and in many cases the customer has to enter the service facilities and be within the servicescape befo

Explain organizational learning at alcatel-lucent, How might Verwaayen cont...

How might Verwaayen contribute to organizational learning at Alcatel-Lucent?

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