The Red Lobster (RL) restaurant chain has been using two seafood vendors for lobster: Cape Cod Fisheries (CCF) and Maines Best. Lobsters from CCF averaged $2.20/pound last year while Maines Best averaged $3.33/lb. While quality has been good from both vendors, CCF continually delivers late and RL has to pay the dock employees overtime to accept deliveries. Last years overtime costs were $50,000. RL purchased a total of 100,000 lbs. last year from CCF. Calculate the Supplier Performance Index (SPI) for CCF.

a) 1.05

b) 1.23

c) Not enough information available

d) 2.20

e) 1.33

The Red Lobster (RL) restaurant chain has been using two seafood vendors for lobster: Cape Cod Fisheries (CCF) and Maines Best. Lobsters from CCF averaged $2.20/pound last year while Maines Best averaged $3.33/lb. While quality has been good from both vendors, CCF continually delivers late and RL has to pay the dock employees overtime to accept deliveries. Last years overtime costs were $50,000. RL purchased a total of 100,000 lbs. last year from CCF. CCF is now having quality issues and RL had to discard several hundred lobsters. This increased nonperformance costs and the SPI for CCF is now at 1.45. What is the true cost for lobsters sourced from CCF?

a) Not enough information available

b) $2.20/lb

c) $3.19/lb

d) $3.65/lb

e) Same as Maine's Best at $3.33/lb

Suppose you are working for Nationwide Properties and buying commercial grade carpet for the apartments you manage from a supply base of 7 suppliers. The contracts with these suppliers may fluctuate over time. During August 2020, the average price you were paying for carpet from your supply base was $45.00 per square yard. During September 2020, you were averaging $46.58 per square yard. You compared this to the PPI Tables which depict the US market. PPI for Carpet was 147.0 for August 2020. PPI for Carpet in September 2020 was 146.7.

Are you buying better or worse than marketplace (PPI)?

a) Better

b) Not enough information is available

c) Worse

d) Same as marketplace