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Three Scenarios of Kamm Industry

Essay by   •  March 21, 2017  •  Coursework  •  706 Words (3 Pages)  •  1,614 Views

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Scenario 9:

One of Kamm Industry’s client Fabulous Factory, who is the main buyer of carpet order 2, stops extending the contract with Kamm next quarter. The management layer of Kamm wants a strategic shift to deal with this situation.

 

Carpet

 

Dobbie

Pantera

Costs per Yard

 

Order

Demand

Yd/Hr

Yd/Hr

Dobbie

Pantera

Subcontract

1

14,000

4.510

na

$2.66

na

$2.77

2

52,000

4.796

na

$2.55

na

$2.73

3

44,000

4.629

na

$2.64

na

$2.85

4

20,000

4.256

na

$2.56

na

$2.73

5

77,500

5.145

5.428

$1.61

$1.60

$1.76

6

109,500

3.806

3.935

$1.62

$1.61

$1.76

7

120,000

4.168

4.316

$1.64

$1.61

$1.76

8

60,000

5.251

5.356

$1.48

$1.47

$1.59

9

7,500

5.223

5.277

$1.50

$1.50

$1.71

10

69,500

5.216

5.419

$1.44

$1.42

$1.63

11

68,500

3.744

3.835

$1.64

$1.64

$1.80

12

83,000

4.157

4.291

$1.57

$1.56

$1.78

13

10,000

4.422

4.558

$1.49

$1.48

$1.63

14

381,000

5.281

5.353

$1.31

$1.30

$1.44

15

64,000

4.222

4.288

$1.51

$1.50

$1.69

Table 9.1 Order Demands and Cost

According to the basic scenario before, we can get the optimal result as below.      

[pic 1]

Table 9.2 Optional solution to basic scenario

From the optional solution sheet, we can find the total production of carpet 2 is 52000 and it is all produced by loom Dobbie. And from table 9.1 above we can find the cost of each yard produced by loom Dobbie is 4.796. When we times the amount of yards and the cost per yard we can figure out that the total cost of carpet 2 to be $132600 (total cost of carpet 2 = yards * cost per yard= 52000 * $4.796 = $132,600).

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