A firm engaging in low-cost country sourcing wants to assume the least amount of risk when importing goods into its own country. Which of the following Incoterms® 2020 rules would be MOST useful in achieving this goal7
MNO, Inc. is a national retail home goods chain formed of local franchisees. Each franchisee uses its own returns processing systems. A key advertising point for MNO is its liberal return policy, which is part of its overall focus on excellent customer service. While feedback from customers is positive regarding MNO’s return policy, there have been inquiries as to why stores handle returns via different processes. MNO’s supply manager suggests the implementation of a reverse supply chain to deal with this issue and possibly yield cost enhancement opportunities. In order to implement this, which of the following is the FIRST course of action the supply manager should take’’
A manufacturing firm redesigns its premier product to benefit from material standardization. The change will entail re-tooling costs. The firm conducts a cost benefit analysis on four possible options. Option 1 is to make no change at all. Options 2, 3, and 4 represent different re-tooling configurations involving different materials:
Option 1Option 2Option 3Option 4
Re-tooling Costs (Year 1)$0$800,000$1,000,000$1,200,000
Material Costs
Year 151,000,000$700,000$650,000$600,000
Year 2$1,100,000$750,000$700,000$650,000
Year 3SI,200,000$800,000$750,000$700,000
Year 451,300,000$850,000$800,000$750,000
Year 551,400,000$900,000$850,000$800,000
Total$6,000,000$4,000,000$3,750,000$3,500,000
Labor Costs
Year 1$1,000,000$700,000$650,000$600,000
Year 2$1,100,000$770,000$715,000S660,000
Year 3$1,210,000$847,000$786,500$726,000
Year 4$1,331,000$931,700$865,150$798,600
Year 5$1,464,100$1,024,870$951,665$878,460
Total$6,105,100$4,273,570$3,968,315$3,663,060
In addition to this, there will be a cost of $3.5 million in lost production during Year 1, should any of the re-tooling options (2, 3, or 4) be selected.
The firm wants to rank the options in order of financial preference, from the best option to the worst. Based on this information, how should the four options be ranked?
A disaster response manager plans to deliver pallets of bottled water to volunteers at a disaster site. The water comes from a nearby bottling company at a preferential cost of $50 per pallet. The number of pallets of bottled water needed is impossible to know in advance due to numerous variables, although experience indicates that the likelihood of consumption is equal: a 25% chance each for 1, 2, 3 or 4 pallets of bottled water. If a full pallet is returned, a restocking fee of 520 is charged. If not enough water is brought in, the cost of purchasing a pallet of water on location is expected to be $200.
How many pallets should the manager deliver?
TESTED 07 Jul 2024
