Reference no: EM131000844
Purchasing Decision Exercise
In class we discussed how companies go about making decisions related to important purchases. One method of making an informed purchasing decision is total value sometimes call life-cycle costing.
You are a sales person for Sherwin-Williams and sell a full line of paints and painting equipment. Most contractors select paint based on cost per square foot of coverage, plus the cost of labor. However sometimes there is a special application and the contract calls in a Sherwin=Williams expert (missionary sales person).
Geoff Miller of Miller Construction has asked you to give him a quote for a very special job. It is an immunology research clinic requiring 7,200 square foot of walls to be painted. It must be low odor and must have anti-microbial properties. These new technology anti -microbial paints only last 3 to 5 years and then lose the anti-microbial properties and need to be recoated.
Below is a summary of the details of the three brands that Miller is considering. Using the concept of life cycle costing, Show that the Sherwin-Williams product is the best value for the final customer. Write a one page FORMAL business letter (NOT AN EMAIL–see below) to Mr. Miller with your recommendation and showing your calculations as to the most cost effective choice.
Sherwin Williams Harmony
Cost per gallon $36
Coverage 350 sq. ft. per gallon
Guaranteed 3 years on anti-microbial properties
Behr Ultra at Home Depot
Cost per gallon $36
Coverage 400 sq. ft. per gallon
Guaranteed 2 years on anti-microbial properties
Glidden DUO at Lowes
Cost per gallon $30
Coverage 250sq. ft. per gallon
Guaranteed 3 years on anti-microbial properties
To earn a grade:
•your letter must be FORMAL format business letter and sent as an attachment via email
•you must CLEARLY show your calculations comparing total costs of each product in a table or spreadsheet
•Misspellings and incorrect grammar will disqualify your letter from credit.
|
Hospitals are facing unprecedented financial challenges
: Hospitals are facing unprecedented financial challenges from entrepreneurial physician initiatives that are establishing competitive, freestanding diagnostic and treatment centers, and specialty hospitals. In your opinion, what are the advantages and..
|
|
Sales forecast error
: Using the data from HW 3 Data.xlsx, forecast 2016 sales for Dynamo Publishing (the first worksheet tab, DYNAMO PUBLISHING) with a smoothing parameter of: (a) α=0.5 (b) α=0.75 (c) Which of these two α’s perform better for minimizing total error? Smoot..
|
|
About the forecast sales
: Forecast sales for Dynamo Publishing at time t = 11 using the HW 3 Data.xlsx worksheet and the Dynamo Publishing II tab. Assume constant unit growth. Does the regression line fit the data well? Justify your answer. TIME SALES ($M) 1 185 2 164 3 178 4..
|
|
Evaluate capacity of the most common distribution channels
: Evaluate the capacity of the most common distribution channels available for the new product launch to provide consumers with easier access to the product. Speculate on the extent to which Golds Reling, Inc. could use each channel to meet profit goal..
|
|
Purchasing decision exercise
: In class we discussed how companies go about making decisions related to important purchases. One method of making an informed purchasing decision is total value sometimes call life-cycle costing. You are a sales person for Sherwin-Williams and sell ..
|
|
Economic perspective-the politician is spouting gibberish
: The politician wants to allocate spending so that schools may purchase new and expensive metal detectors for school entryways. At the dedication he says ‘spending this money will be worth it if this machine saves even one life”. Having taken an econo..
|
|
Which good is likely to have more elastic demand
: Which good is likely to have more elastic demand: soda or new cars? Explain your answer, also assume that all brands of each good experience a price change.
|
|
Does the confidence interval include the population mean
: Assume that the price of housing in Corpus Christi is normally distributed. Based on our random sample of 23 houses we surveyed, we calculated that x = $299,756.2 with the standard deviation s = 107.11. If we know that the population mean, mu = 299,7..
|
|
Substitution between visiting gym and consuming all goods
: Hulk goes to the gym 20 times a month. His income is $1000 per month and his visits to the gym cost $4 per visit. For simplicity, assume all other goods that Hulk consumes besides the gym costs $10 each. Assume Hulk exhibits diminishing marginal rate..
|