Essay About Main Buyer Of Carpet Order And Yard Orderdemandyd

Three Scenarios of Kamm Industry
Essay Preview: Three Scenarios of Kamm Industry
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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 DobbiePanteraCosts per Yard OrderDemandYd/HrYd/HrDobbiePanteraSubcontract114,0004.510na$2.66na$2.77252,0004.796na$2.55na$2.73344,0004.629na$2.64na$2.85420,0004.256na$2.56na$2.73577,5005.1455.428$1.61$1.60$1.766109,5003.8063.935$1.62$1.61$1.767120,0004.1684.316$1.64$1.61$1.76860,0005.2515.356$1.48$1.47$1.5997,5005.2235.277$1.50$1.50$1.711069,5005.2165.419$1.44$1.42$1.631168,5003.7443.835$1.64$1.64$1.801283,0004.1574.291$1.57$1.56$1.781310,0004.4224.558$1.49$1.48$1.6314381,0005.2815.353$1.31$1.30$1.441564,0004.2224.288$1.51$1.50$1.69Table 9.1 Order Demands and CostAccording to the basic scenario before, we can get the optimal result as below.      [pic 1]Table 9.2 Optional solution to basic scenarioFrom 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).