Devry GSCM540 Week 2 Case Paper
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Case: MARS (D) #15
Questions
·
What were MARS total
costs per year prior to the new price structure when the diesel engine price
was $4,800? Was Mars’s using the EOQ method?
·
With the volume
purchase discounts and warehouse constraints, what is the best ordering quantity?
·
With the change in
supplier and the resulting addition of volume purchase discounts and different
transportation rates, how are costs and EOQs affected?
·
What is the difference
between all-unit quantity discount and incremental discount schedules? How
would the costs and EOQs differ? Which would be preferable assuming that both
share the same cost figures?
·
How will these changes
impact the Lean Manufacturing Philosophy at MARS? What would be the resulting
changes in inventory levels?
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