JIT/Lean Production, Procurement and Contracts - Desklib

Running head: JIT/LEAN PRODUCTION, PROCUREMENT AND CONTRACTS
JIT/Lean Production, Procurement and Contracts
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Name of the University
Authors Note
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1JIT/LEAN PRODUCTION, PROCUREMENT AND CONTRACTS
Table of Contents
Answer to Question 1.................................................................................................................2
Answer to Part A........................................................................................................................2
Answer to Part B..................................................................................................................11
Answer to Part C..................................................................................................................14
Answer to Question 2...............................................................................................................14
Answer to Part A..................................................................................................................14
Answer to Part B..................................................................................................................15
Answer to Part C..................................................................................................................15
Answer to Part D..................................................................................................................15
Answer to Part E..................................................................................................................16
Answer to Question 3...............................................................................................................16
Answer to Part A..................................................................................................................17
Answer to Part B..................................................................................................................17
Answer to Part C..................................................................................................................17
Answer to Part D..................................................................................................................17
References................................................................................................................................19

2JIT/LEAN PRODUCTION, PROCUREMENT AND CONTRACTS
Answer to Question 1
Answer to Part A
As per the present contract the total cost as per the market rate is more expensive. The
total framer price at market rate is depicted to be $ 1482420 over a time period of two years.
On the other hand, the price at framer rate is $ 612500 which is $ 869920 more than the price
at market rate. Therefore, it is advisable to proceed with the contract by making a payment
term of net 30. In addition to this, these are directly relevant to legal framework of
procurement in Canada as per “Tercon Contractors Ltd. v. British Columbia
(Transportation and Highways)”. (Mohammadi, Soleymani and Mozafari 2014).
Average Market Framing Rate 15000 per unit
Framer Rate 13500 per unit
Average market increase rate 10% 90 Days
No. of Units to be built 45 2 Years
Cost of Equipment $5,000
Payment terms 30
Time Required (45 Units) 945 Days
Computation of Price to frame Houses at Market Rate
Particulars Units Amount ($)

3JIT/LEAN PRODUCTION, PROCUREMENT AND CONTRACTS
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