This permits Canadians to choose a more efficient and effective mode, because they have more money to spend, therefore more options to choose from than Clearfield. For the first problem which is the high inventory levels, I think the problem is the provider of the transit service. We should consider changing the provider, because the capability of providing the service is not good. So, we should investigate which provider has a better reliability and capability for the company to have a lower transit time, therefore improve their inventory levels, and lowering the cost of holding too much inventory. For the second one, that is the transportation cost we should consider
In addition, there will be the opportunity cost of not having cash available for more useful requirements i.e. supplier discounts, interest income. Therefore, Willow Company needs to hold optimum levels of inventory and increase its sales in order to improve its inventory turnover and cash
Will it only cover a single facet of the topic or will we attempt to cover a much broader range. Time – is money in business and our provided budget will have a significant effect on the time we can put into a given project. The wider the project is, the more primary resource sources we use, the more time i tis going to take. Expertise – is likely to be related to the effect of out budget. The less money we have the less we are able to hire experts to assist us.
The firms with lower ROS, ‘losers’, must find ways to reduce costs from their operations/products and/or be able to charge higher prices without losing unit sales in order to increase their ROS and avoid domination by the more successful firms. What type of competition is found in each
Figures on the cash flow forecast at this point will look very poor. Therefore it is important for the company to make sure that they are making enough money from the products that they are selling and haven’t under-priced them if they have used expensive materials. If the materials are too expensive then they must make sure that they have looked into buying cheaper material as long as this doesn’t affect the quality of the product that they are selling or this may also affect how well the product sells. Expenditure Changing the company’s expenditure will have an effect on the profit or loss it makes. If there is a large increase in some of the figures of the expenditure, it could mean that there would be either a large decrease in the profits made by the company or that the company’s loss figure has increased suddenly.
With the dates about the demand , GLC can evaluate the ofer that they need to handled the demand , and the way that they are gona do it , if they are going to do some hauls by trucks or by ships , how many workers they need to have , the schedudels that they are going to handled etc. All of these depend of the demand of both components. 2. What cost data would you need to make a rational decisión? the company need to evaluate the cost of : * Ship: they need to know how much is the cost of fuel, officials, and the cost of operating in each country or city.
There are reports that say the economy will grow over the next few years (2010), but there is a possibility that they could be wrong and that won’t happen. If the opposite happens and the economy hits a decline, this could really hurt the business of Keystone and many other companies for that matter. On that note, people will start looking to save money and if they can find the same product that this company offers for a cheaper price, they might just do that. The last red flag that I would see when deciding whether to select this client would be the fact that they have recently started extending credit to customers with less than perfect credit (2010). Although this could mean nothing, this could also be the beginning of a downward spiral of bad debt.
Introduction: Production and Capacity planning is one of the key aspects of operations management as it determines the amount of goods or services which can be produced within a given time duration. Too less capacity indicates that customers won't be satisfied and too much capacity would result in the operation being under-utilized with resultant high fixed costs and also affecting breakeven and profitability. A company, when it has to increase its capacity it has various options to consider, from working overtime to building a new facility or a plant. Forecasting demand is critical to capacity planning and companies can adopt different strategies of capacity planning, to ensure customer satisfaction and maintain the operations well
Thus, they will lose their competitiveness in price otherwise the margin. Last but not least, due to the process of globalization, CEMEX and its competitors could well spread their risks. If one market is not performing well, they could depend on the other ones. So, assuming there isn’t a world-wide recession, the revenues of theirs will be more stable because of diversification. 2.