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Analyze the Senco Electronics Co.Case 3.2 on page 80 of your textbook

Coursework Instructions:

Analyze the Senco Electronics Co. Case 3.2 on page 80 of your textbook (page 112 in the Copia view of the textbook) and answer the questions at the end of the case. Upload your answers (including an Excel graph for question 3).
Note: the textbook has an error where it shows total costs for the Ocean option. It shows 823,000, but it should show 825,000



CASE QUESTIONS 1. If you were Skip Grenoble, which alternative would you advise Jim Beierlein to implement? What criteria would you use to arrive at your decision?
2. At what level of demand (in pounds) per year would these two alternatives be equal? 
3. Graphically represent these two alternatives and their tradeoff point. 
4. Which alternative would you recommend be in place to accommodate future demand growth? What additional factors should be considered?

Coursework Sample Content Preview:

SENCO Electronics Case Study
Your Name
Subject and Section
Professor’s Name
August 30, 2019
1 To arrive at an answer, we must first consider the following graph:
The table above shows that the total cost of transportation using ocean and air are $150,000 and $290,000, respectively. On the one hand, air transportation cost involved to deliver the products from one end to the other is more as compared to the cost needed for ocean transportation. However, the total cost of ocean logistics would then amount to $825,000, which is significantly more than that of air logistics at $800,000. Therefore, it is more advisable for SENCO to use air cargo since it is less in overall.
2 The total cost can be derived at using the formula
Total Cost = Fixed Cost + (variable cost per unit x demand))
* Total cost for Ocean trans...
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