GSCM540 Week 2 MARS (D) Case Study
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GSCM540 Week 2 MARS (D) Case Study
Questions
- GSCM540 Week 2 Case Paper Case: MARS (D). What were MARS total costs per year prior to the new price structure when the diesel engine price was $4,800? Was Mars’s using the EOQ method?
- With the volume purchase discounts and warehouse constraints, what is the best ordering quantity?
- With the change in supplier and the resulting addition of volume purchase discounts and different transportation rates, how are costs and EOQs affected?
- What is the difference between all-unit quantity discount and incremental discount schedules? How would the costs and EOQs differ? Which would be preferable assuming that both share the same cost figures?
- How will these changes impact the Lean Manufacturing Philosophy at MARS? What would be the resulting changes in inventory levels?
GSCM540 Week 2 MARS (D) Case Study
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