Assignment Problems (76points in total):1. Give the definition of â€œBullwhip effectâ€ anddiscuss the impact of Bullwhip effect on the financial performance of anorganization. Please have a discussionof at least 100 words. (8 points)

2.PriceTechnologies, a California-based high-tech manufacturer, is consideringoutsourcing some of its electronics production. Three firms have responded toits request for bids, and CEO Willard Price has started to perform an analysison the scores his OM team has entered in the table below.

Criterion

Weight

Supplier 1 (rating)

Supplier 2 (rating)

Supplier 3 (Rating)

Labor

0.2

4

4

5

Logistics system

0.3

3

4

3

Price

0.2

4

3

3

Management

0.3

5

4

3

Theoutsourcing provider scores are on a scale of 1 through 5, with 5 being themost satisfactory.Whichsupplier should Mr. Price choose? Pleaseprovide the overall ratings of each supplier for full credit. For each overallrating, please provide at least one step of calculation. (14 points)

3.Mark Berenson isCEO of Montclair Electronics. He is currently producing 100,000 videotelephones a year in his New Jersey plant, where fixed cost are $2 million and thevariable cost per unit is $4. By outsourcing to anAsian company, annual fixedcost payments will decrease to $1 million.

a)When the variablecost of outsourcing is $6 per unit, what is the break-even quantity in thiscase? Please provide the formula, atleast one step of calculation, and the correct answer for full credit. (6points)

b)Should thecompany outsource and why? (4 points)

4.Suppose therevenue for a firm is $8,000,000. Its cost of goods sold is $300,000, and itsaverage inventory value for the year is $100,000.

a) What is the firmâ€™s inventory turnover? Please include the formula, at least onestep of calculation, and the correct answer for full credit. (6 points)

b) What is the weeks-of-supply of the firm? Please include the formula, at least onestep of calculation, and the correct answer for full credit. (6 points)

Month

Actual Sales

January

20

February

30

March

35

5.Handy, Inc.,produces a solar-power electronic calculator that has experienced the followingmonthly sales history for the first three months of Year 2015, in 1,000s.

a)Calculatethe 3-month moving average forecast for the demand in April. For full credit, please include theformula, at least one step of calculation, and the correct answer for theforecast. (6 points)

b) Suppose the forecast for January was 25,000.Determine the forecastfor February using exponential smoothing with a smoothingconstant of α=0.2. For full credit,please include the formula, at least one step of calculation, and the correctanswer for each forecast. (6 points)6.Company X canpurchase a certain component from either Supplier A or Supplier B. Supplier Aoffers an incremental quantity discount, while Supplier B offers an all-unitquantity discount.

To bespecific, Supplier A charges $10 per unit for the first 5,000 units in anorder, $9 per unit for the next 5,000 units in the order, and $8 per unit forany unit beyond. Supplier B charges $9 per unit for orders of no more than 15,000units and $8.5 per unit for any bigger orders.

(a) SupposeCompany X decides to buy 20,000 units from Supplier A. What is the average unitcost of the order? Please provide atleast one step of calculation and the correct answer for full credit. (4points)

(b) IfCompany X wants to place an order of 20,000 units, which supplier offers alower total cost. Please provide thecorrect answer and the reasonfor full credit. (4 points)

7.Given thefollowing information, compute the optimal order quantities as required.

Annual Demand

500,000units

Order Cost

$200 per order

Inventory Holding

20% ofunit cost

(a) Supposethe unit cost of the product is $100. What is the Economic Order Quantity ofthe inventory control system? (You caneither round up or round down.) Please include the formula, at least one stepof calculation, and the correct answer for full credit. (6 points)

(b) What isthe annual total cost if the Economic Order Quantity is ordered each time? Please include the formula, at least onestep of calculation, and the correct answer for full credit. (6 points)