Danshui Plant No. 2

JJ has complained on behalf of the performance measurement system because currently his bonus is based off of production cost being less than 43 percent of sales. JJ believes that the production facility is operating as efficiently as, if not better, than it has before the expansion. Due to this performance measurement JJ’s ownership when from 25 percent to 8 percent and he is losing bonuses and annual dividends.

In order to maximize the total profit, the monthly production plan should be 1900 unit/month for Model S and 650 unit/month

Apple products are designed in California USA and manufactured in different foreign countries such as China, Taiwan, Korea, Mongolia, and Europe which produce part of the devices, most of the raw material ‘Earth Minerals’ to produce these items can be found in China. Since technology has a lot of benefits in human’s life, the demand has been increase year by year which make business to expand and hiring more people in the company. From 2005 to 2015 the number of full-time employee’s has been increase more than 80 thousands.

The company is weakened mainly by its lack of technological advancement in every area of production. For example, if the company chose to modify their equipment to produce their “Atherley” model as well, it would be able to lower production costs of this model, in turn increasing the profits of this model further. In addition, the Atherley Furniture Company greatest threat is the decreased market for their “Parkdale” model. The “Parkdale” model has the most time consuming and costly production. With lack of a market for this model, the company stands to continue to lose profits. In conclusion, if the company wishes to continue to operate their chair division profitably as well as efficiently, the above issues need to be addressed and corrected.

Alistair Wu has requested that I look at what the lowest shipping schedule and cost can be based on data that he has provided. He wants to know what the lowest possible cost of shipping will can be. Mr. Wu is also considering increasing production at the Shanghai factory from 1,300 to 2,800 units, and wants to ensure that this growth will be an affordable choice. The first chart that was given lists the factory capacity and what each warehouse demand is. The second chart lists the price of shipping from each factory to each warehouse. The chart looks at the demand in the warehouses as well as the cost to

In the case of Mendel Paper Company which produces four basic paper products lines at one of its plants: computer paper, napkins, place mats, and poster board. Although the plant superintendent, Marlene Herbert is pleases with increased sales he is also concerned about the costs. The superintendent is concerned with the high fixed cost of production, the increases in fixed overhead and even variable overhead. He feels that the production of place mat should be discontinued. His reason for the discontinuation is that the special printing is driving up the variable overhead to the point where the company may not find it profitable to continue with the line. After reviewing the future predictions of the

In its first year of operation, the company produced 10,000 units but was able to sell only 9,000 units. In its second year, the company needed to get rid of excess inventory (the extra 1,000 units produced but not sold in 2011), so it cut back production to 8,000 units. Required a. Calculate profit for both years using full costing. b. Note that profit has declined in 2012. Is company performance actually worse in 2012 compared to 2011?

In this report, I prove that Apple’s iPhone has dominated all other smartphones in the years leading up to 2016. It is the epitome of what a globally recognized product can accomplish when considering how quickly it globalized and the image it provides for those who buy an iPhone. Owning one of these phones is not only a statement, it holds power and value that other smartphones simply cannot top. The company owns the stage when compared to other smartphones, and it’s journey to become the world’s second-largest mobile phone manufacturer is truly incredible. In fact, not only does it lead in technology and phone production, it’s become the largest publicly traded TNC in the world. Everything from its assets to its brand loyalty prove why it has expanded across the globe, and will continue to for many years to come. Apple Inc. has globally expanded by outsourcing nearly every level of its production and became one of the most successful and revolutionary TNC’s in the world, mainly due to the release of the infamous iPhone in 2007.

Danshui Plant No.2 is a contract manufacturer locating in southern China and was assembles electronic products for companies wishing to save labor costs and they are using semiskilled labor for less than 1 dollar an hour. In August 2010, Danshui Plant No.2 in southern China has a 1 year contract in the period between 1 June 2010 and 31 May 2011 with Apple incorporation to assemble the Apple iPhone 4. Based on the contract, Danshui need to assemble 2.4 million iPhones within 1 year. However, Wentao Chen, manager of Danshui Plant No.2 was anxious about the plant is not able to assemble 2.4 million as their expected and is operating at a loss when the third month of the contract. Their current production was only 180,000 units

Apple Inc. has been dedicated to innovation ever since the company was first formed. Apple's recent breakthroughs were a result of a new technologies convergence upon the "digital hub" strategy (Mortensen, 2010). This strategy has served Apple well; especially during the last few years. The iPad, iPod, and iPhone were all born from this strategy. Furthermore, producing these innovative, user friendly, and design oriented products has earned them a considerable amount of customer loyalty.

The upgrade of the Rotterdam plant involves implementing the Japanese technology and requires a capital expenditure of £8.0 million with £3.5 million spent today, £2.0 million on year one, £1.0 million on year two and £1.0 million on year three. This will also increase polypropylene output by 7% from current levels at a rate of 2.0% per year. In addition, gross margin will improve by 0.8% per year from 11.5% to 16.0%. After auditing the financial models, it is concluded that the static net present value of the upgrade is -£6.35 million using a discount rate of 10% and an expected inflation rate of 3% annually. The Rotterdam upgrade contains an option to switch to the speculated German technology being available in five years. The current value of the option is zero as it is deeply out-of-the-money. The total net present value of the upgrade is -£6.35 million. The incremental earnings per share of the upgrade is £ 0.0013, the payback period is 14.13 years, and the internal rate of return is 18.7%.

The two plans, Sarnia 1 and Sarnia 2 are producing halobutyl and regular butyl, respectively. The newly regular butyl plant, Sarnia 2, is running at less than capacity. The plant should be able to produce 95,000 tonnes, but the actual production is only 65,000. This creates a lot of unabsorbed fixed costs and inefficiency.

iPhones were created from an inventor named Steve Jobs in 2007. Apple’s Inc. asked their engineers to create touchscreen devices and tablet computers. Apparently iPhones were only sold to AT&T contracts, but after eighteen months of negotiations Steve Jobs had an agreement with the “wireless division” of AT&T to the iPhone’s

1. As we can see from the Exhibit 1, 176,087 Apple iPhone 4’s would have to have been completed for Danshui Plant No.2 to break even.

As mentioned earlier, Apple’s supply chain relies on third party suppliers and outsourcing to produce their devices. This strategy can become extremely risky in satisfying demand when resources are limited to one supplier, as seen in the company’s recent failing in meeting demand for the