Question
In: Statistics and Probability
A large manufacturer purchases an identical component from three independent suppliers that differ in unit price...
A large manufacturer purchases an identical component from three independent suppliers that differ in unit price and quantity supplied. The relevant data for 2012 and 2014 are given here.
| Unit Price ($) | |||
|---|---|---|---|
| Supplier | Quantity (2012) | 2012 | 2014 |
| A | 100 | 4.95 | 5.50 |
| B | 200 | 5.60 | 5.95 |
| C | 160 | 5.50 | 6.20 |
(a)
Compute the price relatives for each of the component suppliers separately. Compare the price increases by the suppliers over the two-year period.
(b)
Compute an unweighted aggregate price index for the component part in 2014.
(c)
Compute a 2014 weighted aggregate price index for the component part. What is the interpretation of this index for the manufacturing firm?
Solutions
orchestra answered 2 years agoRelated Solutions
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Edwards Manufacturing Company purchases two component parts from
three different suppliers. The suppliers have limited capacity, and
no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$12
$14
$10
2
$14
$12
$10
Each supplier has a limited capacity in terms of the total
number of components it can supply. However, as long as...
Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity,...
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three different suppliers. The suppliers have limited capacity, and
no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$10
$14
$10
2
$16
$12
$10
Each supplier has a limited capacity in terms of the total
number of components it can supply. However, as long as...
Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity,...
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three different suppliers. The suppliers have limited capacity, and
no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$12
$14
$10
2
$14
$12
$10
Each supplier has a limited capacity in terms of the total
number of components it can supply. However, as long as...
Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity,...
Edwards Manufacturing Company purchases two component parts from
three different suppliers. The suppliers have limited capacity, and
no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$12
$12
$11
2
$10
$12
$10
Each supplier has a limited capacity in terms of the total
number of components it can supply. However, as long as...
Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity,...
Edwards Manufacturing Company purchases two component parts from
three different suppliers. The suppliers have limited capacity, and
no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$12
$13
$10
2
$15
$12
$10
Each supplier has a limited capacity in terms of the total
number of components it can supply. However, as long as...
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no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$12
$13
$10
2
$15
$12
$10
Each supplier has a limited capacity in terms of the total
number of components it can supply. However,...
Problem 9-11 (Algorithmic) Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers...
Problem 9-11 (Algorithmic)
Edwards Manufacturing Company purchases two component parts from
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no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$10
$10
$15
2
$11
$10
$10
Each supplier has a limited capacity in terms of the total
number of components it can supply. However,...
Problem 4-11 (Algorithmic) Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers...
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Edwards Manufacturing Company purchases two component parts from
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no one supplier can meet all the company’s needs. In addition, the
suppliers charge different prices for the components. Component
price data (in price per unit) are as follows:
Supplier
Component
1
2
3
1
$10
$14
$10
2
$12
$12
$10
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number of components it can supply. However,...
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Cost Formula
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