How do Calculate the total cost of ownership per unit and Supplier Performance Index of Kong Pulp
Question:
How do Calculate the total cost of ownership per unit and Supplier Performance Index of Kong Pulp & Paper Mills (KPPM), and Bonn Paper Company (BPC) for the two following options:
(i)Standard publishing paper and road freight using Mainfreight.
(ii)Green e-certified publishing paper and rail freight using KiwiRail.
Next, how do I compare the relative financial performance of the two suppliers for both options in part (a). Using the information from the case, outline (with reasons) TWO key non-financial factors that PBP should consider when deciding which paper supplier, paper type, and/or freight option to use. Use the information in parts (a) to (c) to make recommendations on whether PBP should use:
(i)KPPM or BPC paper supplier;
(ii)Standard publishing paper or Green e-certified publishing paper type; and
(iii)Road or rail freight option,
Briefly state the reasoning for your recommendations.
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton