A Firm Has Established a Distribution Network for the Supply

question 56

Essay

A firm has established a distribution network for the supply of a raw material critical to its manufacturing.Currently there are two origins for this raw material,which must be shipped to three manufacturing plants.The current network has the following characteristics: The firm has identified two potential sites for a third raw material source;these are identified as Candidate A and Candidate B.From A,the costs to ship would be $9 to Plant 1,$10 to Plant 2,and $12 to Plant 3,respectively.From B,these costs would be $11,$14,and $8,respectively.The new source,wherever it is located,will have a capacity of 500 units.Set up this problem as two separate transportation matrices.(Do not solve the problem. )

Recognize the need for comprehensive situation analysis including audience, purpose, and challenges in business communication.

Understand that successful business communication often involves persuasion and achieving specific results.

Recognize the importance of the revision process and feedback in improving business communication quality.

Understand the significance and utility of fixed budget performance reports.

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Definitions:

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the level of risk in a business.

Wire Strippers

A hand tool used to remove the insulation from electric wires to make connections or terminations.

Manufacturer

A business entity engaged in the production of goods through the processing of raw materials and components.

Net Operating Income

Net operating income is the profit derived from a company's regular, core business operations, excluding expenses and revenues from non-operating activities, crucial for assessing operational efficiency.