Risk Management Essay

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SUPPLY CHAIN TASK 1 Cheri Jill Upshaw August 12, 2014 A. See Attached 1. Final Cumulative Balance Scorecard From Quarter 5 2. Income Statement From Quarter 5 3. Balance Sheet From Quarter 5 B. 1. I chose Airborne for the name of my microcomputer company in the Marketplace Simulation. I chose the name based on the first letter of the alphabet is A. When doing searches the beginning of the alphabet comes up more often and since computers transmit information via the cloud or other signals in the air, I chose Airborne. The simulation itself was a helpful tool to pull all the information together while doing the calculations. I used the pro forma statements and budgets to plan for the overall formation and growth of the company. I used them to determine when to invest money in all areas of operation to increase investment and growth. In quarter one, I started out with only the initial two million dollar investment and the goal was to get the company off the ground, producing and selling the computer line while maintaining a minimum of $300,000.00 at the end of the quarter. After the initial two million cash contribution, I planned knowing that there would be another one million cash contribution added in quarter two and quarter three. After budgeting for rebates, the costs of goods sold, research and development, advertising, sales force expense, sales office expense, marketing research, shipping and other costs to do business my operating profit at the end of the first quarter was a negative $400,000.00 which is not unusual for a new start up company. However, my cash balance at the end of the first quarter was a positive $803,000.00. I started out the first quarter by setting production at 25 computers per day which was well within budget . However, at the end of the first quarter, the company had missed sales due to lack of production, lack of inventory and an

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