E3-32 (similar to) Question Hep r ina da, a ter ato areal Sat s ans en g r plen

Question

E3-32 (similar to) Question Hep r ina da, a ter ato areal Sat s ans en g r plen n nga e bni eslot n?ws M itsmuton system for processing mechan se orders The arrent system costs Foo mart $2.000,000 per month and S55 automated 82B systo has a fed cost of 526. 400,000 per month and $30 per order. Based on data trom the past two years, Foodmart has determined the following dishr bution on monthly art has trs opfoms, a partally automated 82B and a huily automated 828 system The pawtally automated 828 system will have a fixed cost of $12,000,000 per month and a variable cost of $40 per order The fuly orders ECkck the icon to view the data) 1. Propare a table showing the cost of each plan for each quantily of monthy ordes ? ?, adison to the ntmnation system eosts, what oter ors should Foodiart consider before idngtoimplement a new B2B system 1&2. Propare a table showing the cost of each plan for each quanty of montily orders What is the expected cost of each plan? the monthly cost of oach ondor level under the curent plan and then compute the exected cest

Explanation / Answer

1) Cost of Each plan :-

Partially Automated :-

Fully Automated System :-

2) Current System Expected Cost ;-

Partially Automated System :-

Fully Automated System :-

3) The Company should maintain good relationship with the suppliers and Intermediaries as well as the employees

morale should be boosted up.

Monthly No. of Orders Calculation Cost of Current System 350000 ($2000000+($55*350000)) 21250000 450000 ($2000000+($55*450000)) 26750000 550000 ($2000000+($55*550000)) 32250000 650000 ($2000000+($55*650000)) 37750000 750000 ($2000000+($55*750000)) 43250000

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