He has to decide daily what kind of realistic delivery dates he can set without upsetting the customer. Along these lines is the daily decision of when to prioritize which line – whether through production, marketing, equipment, and labor. Over the long run, Thomas has to think on an accounting level since he has furniture in all stages of ready. Some of the pieces are only raw materials, others are work in process, and others still are completed and in storage. Also, as his business continues to grow, Thomas will have to think about whether to hire more people and at the same time what kind of new equipment should he buy.
Operating income moved along the same path for the period albeit at a lower rate. The company’s invest ment in its self-insurance fund and interest income contributed significantly to the difference between operating income and net income. Revenue fell off by 12% in 2009 however; it increased by 22% in 2010. The company was able to increase it domestic and commercial rate after an application was made to the Fair Trading Commission. Fuel expenses grew at a faster rate than sales, fuel costs although seeing a fall off in 2009 by 20.52% rose by 29% in 2010.
Capital expenditure of $155,000 was incurred during last 2 years. Increase in invested capital reduced both IGR and SGR. As sales growth rate was higher than IGR and SGR, firm had to rely on trade credits and trade notes, besides internal accruals and bank notes to finance its cash outflows. Projections for 1996 are based on information provided and other assumptions described in excel sheets viz. all trade notes will be fully paid and trade credit of 10 days is for additional purchases made from April 1, 1996.
Executive Summary My decision is for Barilla SpA is to implement the JITD system. This will replace the old system of the GD and DO placing orders to Barilla sales people, and put the responsibility back on Barilla to accurately forecast demand. One of the major problems in Barilla’s supply chain is the huge fluctuations in demand, and the JITD system will allow them to smooth out the peaks and valleys in the current supply chain. Barilla will face push back from their own sales force, as well as their distributors, but as long as Barilla can gain the trust of their distributors and sales force, they can make the transformation a success. The JITD will be most successful with larger customers, so they should start out by getting the largest ones to sign up first.
Rather than lose $13,000 per month, Burton could rent his rig (and receive $15,000 per month) and drive trucks for another firm (and earn $5,000 per month). With this use of his resources he would earn $20,000 per month. Or, Burton could try his luck as a singer in a rock band. 6. a. Some Marriott franchises are shirking their responsibility to maintain high quality hotels, and this shirking damages the reputation of all Marriott franchises.
Date: 27/03/2011 Prepared By: Elio El-Rayess University ID #: 08/12386 Operations Management Chapter 2: Case Study THE PERT STUDEBAKER Question 1: Using the information provided, prepare the report that Roberts requested, assuming that the project will begin immediately. Assume 45 working days are available to complete the project, including transporting the car to Springfield before the meet begins. Your report should briefly discuss the aspects of the proposed new business, such as the competitive priorities that Roberts asked about. Answer: The restoration business, although using much of the skills and resources needed for the other market segments the company serves, needs to be evaluated carefully before entering into this field. Currently Roberts Company has car dealerships, auto part stores, body/paint shops as well as an auto storage yard.
Further it increased both sales and net income by 54% and 28% vs. 1993, but the company has a problem of a liquidity and a shortage of cash. One of the biggest indicators of this problem is almost double decrease in quick ratio in 2 years (Exhibit 1). This means that the company has a decrement of current assets (not considering inventory) comparing to current liabilities by 0.66. Another factor which helps us understand the reason for shortage is Cash Cycle, which consists of Average Collection days and Average Inventory days subtracted by Average Payment days. This indicator is increasing dramatically by almost 11 days in two years, because of increase of Collection and Inventory days by 16 and minor increase of Payables days by 5 (Exhibit 2 and 3).
1) Externally, the problem is that in order to be more competitive, BVSx need to lau nch the new “Augmentor®” technology as soon as possible, but one of the main suppliers LCSD, which is assessed as the only qualified supplier for the new technology now is unable to provide the material on time to satisfy the requirement from R&D. Instead of relying on the two main already existed suppliers, BVSx tried to look for other resource, they found a small company Wildgrass might be able to support their future development. So the supplier structure could be changed, how to balance the relationship with different suppliers and how to nurture the new supplier is the main issue for the supply chain. 2) Internally, the internal supply chain of BVSx has to be improved in order to keep the sustainable development of the company. There is a problem to antici pate the under developed material need to be solved and how to control the cost is also the issue, if the company need to be more stronger especially under the fast development situation, no doubt cost control will be very important.
The average daily number of vehicles on motorways has increased by 47 000 since 1971. This shows that more people can afford motor vehicles and in that sense, their living standards have improved. Also, in 2006, more people could afford housing goods such as washing machines, telephones and televisions than in 1971. When thinking of living standards, sometimes some statistics that affect the society in certain ways are forgotten or not considered enough. For example the number of abortions in U.K. has almost quadrupled from 63 400 abortions per year, to 199 019 abortions per year.
For the future cooperation between those two companies, he needs to know what problem really was in order to find a right tactic. 5. (a) There is competition. When he said that, he was indicating that there is competition and other clients would like spending time with him to try to get the deal done. He was saying that they changing the executive without telling him and scheduled such a short time to deal with him did not show any sincerity.