What are the strengths and weaknesses of Barilla’s approach to continuous replenishment? How might it be improved? Strengths of Implementing JITD * Barilla forecasted demand of the products better than the distributors by using more sophisticated techniques. Based on the history of shipments made by distributors, Barilla could forecast production requirements and shipping requirements thereby reducing its production costs and inventories held in Central distribution centers. * Stock outs are greatly reduced greatly by implementing JITD.
* Diverse products Diverse products and revenue should help shield the business from shocks in any one part of their business. Different products have different characteristics. Those characteristics do not always match; therefore, a company can lower their risk by investing in a business with low correlations with other products. This lowers risk and increases the value of the business over the long-term. WEAKNESS: * Company size "Company Size" will have a long-term negative impact on this entity, which subtracts from the entity's value.
The importance of revenue is that tells you how much money overall is coming into the business and subtracting the costs you can see what your overall profit is. An increase in revenue could also lead to more investments back into the business, for example by staff training, extending a department etc. A decrease in revenue will mean a decrease in profit, and probably having to cut budgets. If Shafal doesn’t cover her expensive her business shut down. The way revenue helps the business is a by money coming in from different areas such as rent.
* Product lines that were not covering their avoidable costs could be dropped. * New product development is likely to receive more focus as the review program identifies areas of increasing demand. * Gourmet is likely to benefit from better monitoring of competitors’ product development, prices, and market share trends. F. This is an open-ended question; the specific steps are likely to vary based on the circumstances and the information found. Analysis for a given product might include the following general steps: * Identify the product to be analyzed by using a quantitative monitoring technique (e.g., size decline in contribution margin or sales) or some other method * Obtain and analyze detailed revenue and cost data prior periods; look for negative trends * Obtain and analyze the correlation of sales for this product with other products; look for potential relationships with other products that might influence a decision to drop the product * Obtain and analyze industry information about the product; look for information about trends in customer tastes, competition,
Willow Company is must reduce its inventory levels and sell inventory at a faster rate to improve the inventory turnover closer to 30 days. Due to the negative cash flow, Willow must explore the opportunity to manage its inventory levels relative to sales. The greater the inventory levels, the higher sales must be, otherwise additional storage and other holding costs will be incurred to cause further deterioration in its cash position. Cash will be invested into unsold inventory that is generating no return while remaining unsold. In addition, there will be the opportunity cost of not having cash available for more useful requirements i.e.
(8/10) Andrew Mitchell believed that the best solution to resolving the dispute over the introduction of new technology was to close the UK factories and move production to a purpose built factory in China. Do you agree with this view? Justify your decision. (18 mark) One argument to suggest that Andrew was right in his decision was that before his plans were put into place Burkinshaws efficiency was beginning to decline. This means that the productivity of their workforce has been declining in comparison with their competitors.
For a big country like China, one important thing is being responsible to the world. Decreasing the domestic population presses is the currency duty for China. Even though the one-child policy causes some negative effects, but currently it is an effective way for the population of
Supplier Selection at Casturn Systems (A) What are the benefits and disadvantages of the re-sourcing process in Figure 1? Benefits: * Provides an opportunity for Casturn GMC to find out multiple suppliers’ price point. Casturn CMC can then discuss and gain understanding of the cost structure with suppliers, and further negotiate a lower price for Casturn. * Through e-RFQ, Casturn CMC is able to obtain price quote from a number of identified suppliers efficiently. Disadvantage: * Technical evaluation after price negotiation causes an unfair price competition during auction between high quality suppliers and low quality suppliers.
9). The rotation of perishable goods can be improved by conducting a survey and a questionnaire to the customer to indicate the needs of customer. Analyzing a turnover ratio per capital of each product will minimize the perishable rates. If a proper turnover ratio were set for the operation of buying and stocking of a product, KFF can easily expect what to expense and when to allocate the budget cutting the loss of excessive supply of the product. Specialty Shops Because KFF offers sophisticated professions such as butcher, baker, and wind steward, “payroll of these specialty positions is higher than that of the clerks and stock personnel” (KFF strategic plan, p. 9).
3. People often feel that tariffs, quotas, and other import restrictions will save jobs and promote a higher level of employment. But trade restrictions that reduce the volume of imports will also reduce exports. Question 4: What do researchers have to say about the relationship between firm’s productivity and exposure to global competition? Answer: Question No.5: When is international trade an opportunity for workers?