CH_11_10th_Editions

CH_11_10th_Editions - Supply Chain Management CHAPTER 11...

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Supply Chain Management CHAPTER 11 SUPPLY CHAIN MANAGEMENT PROBLEMS 1. Scholarly Books, Inc. has an order for two thousand copies of the latest Mary Weaver novel. The Company sells the books for $15.00 each. It estimates that it can earn 9.00% per year on its money. The books can be shipped today for delivery tomorrow at a cost of $75.00; or for delivery the day after tomorrow at a cost of $70.00; or for delivery on the third day for $65.00; or for delivery on the fourth day for $50.00. Whenever the books are shipped, payment is expected to be received 5 business days after the buyer receives the novels. a. What is the dollar amount that could be earned on the money required by this order per year? Per day? b. Which shipping schedule should Scholarly Books use? 2. Fencepost Computers, Inc. has an order for 50 laptop computers. The Company sells the computers for $500 each. It estimates that it can earn 8% per year on its money. The laptops can be shipped today for delivery tomorrow at a cost of $100.00; payment would be received in 5
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CH_11_10th_Editions - Supply Chain Management CHAPTER 11...

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