1. Describe the e-procurement system and its advantages over the manual system. Arethere any disadvantages to the electronic system? Do you think the e-procurementsystem will ultimately replace the manual system? Why or why not?
Please have a discussion of at least 100 words.
2. Explain backward vertical integration and list at least 4 advantages compared to backward vertical integration.
3. What are micro-purchases? How can they be used to improve public procurement?
4. If a firm's net income (profit before taxes) is $120,000 and it has total assets of $1.2 million, what is its return on assets?
For full credit, please provide the formula for calculating return-on-assets, at least one step of calculation, and the answer.
5. If a firm's cost of goods sold is $2.5 million and its average inventory is $500,000, what is the inventory turnover?
For full credit, please provide the formula for calculating return-on-assets, at least one step of calculation, and the answer.
6. You are given the following information:
|
Cost
|
Make Option
|
Buy Option
|
|
Fixed cost
|
$125,000
|
$8,000
|
|
Variable cost
|
$15
|
$17
|
a. Find the break-even quantity. Please provide the formula, at least one step of calculation and the correct break-even quantity for full credit.
b. If the expected production quantity is 100,000 units, should the firm make or buy the component? Please first answer Yes/No and then provide the reasoning.