8. Continuing with the data in problems 5 and 7, how much are the profits to Ajax reduced in problem 6 by the new

student behavior in the third week?

9. Suppose that the peanut butter for the 300 daily peanut butter and jelly sandwiches is delivered once per week and

one delivery costs $20. A week's supply of peanut butter is valued at $100 and the cost of capital is 15 percent. Further

suppose that the invoice for peanut butter is paid immediately. What would be the costs and benefits of delivering

monthly, using VMI, where payment is made immediately upon use by Ajax?

10. Continuing problem 9, what information linkages might be established from the Ajax ERP systems to the peanut

butter supplier to make the VMI work? What would the information links be if the payment to the supplier was paid

based on sale of the sandwiches? What else would need to be included?

11. Ajax has established a new sandwich shop format for airports and train stations. Here, the sandwiches are only

made from a specially made, long, individual loaf of bread. But the innovation is that the sandwiches are not made

ahead in large batches. Instead, a few of each variety of sandwich are made at a time, in the shop, with the result being

a better ability to exactly match supply to demand. If prior to this change the shop had roughly 5 percent leftovers of

one-half of the sandwich varieties each day, but could have sold 10 percent more of the two best sellers that day, what

are the potential benefits of the new format if the store sells 12 different sandwiches each with an average demand of

20 per day?

12. Continuing with problem 11, how might an ERP system help plan the replenishment orders for sandwich

ingredients?