saint mkt377 module 8 final exam

MGT 377 Final Exam 1&2

1A store stocks beer mugs and the demand for these beer mugs is 10,200 per year. It costs $120 per

Order of the mugs and it costs $1.35 per mug per year to keep the mugs in stock. Once an order is

Placed, it takes seven days to receive the order from the distributor. Determine the following:

a. Optimal order size

b. Minimum total annual inventory cost

c. Reorder point

4. The Really Big Weapons Company was asked to bid on the barrel assembly for the 30 mm recoilless

Rifle. The company estimates that it will take 10 hours to complete the 25thunit, and based on

Historical data for similar barrel assemblies; an 85-percent learning curve is expected.

a. What is the expected average time for the first two units?

b. What is the approximate estimated time for the 100thunit?

Describe how purchasing strategy is becoming more intertwined with organizational strategy. How

Has this evolved and how is it changing the role of purchasing managers

2. Describe the legal ramifications that are associated with the purchasing role. What are some of the

key roles and responsibilities related to the legal ramifications to the firm? Also include in your answer

the four components of a legal contract.

Describe the process of negotiations. Be sure to include the difference between distributive and

Integrative bargaining along with the psychological factors often associated with the negotiation

Process?

.