MBA 504
MAC 502
Spreadsheet Modeling
Assignment #8
Prof. Liz Durango-Cohen
The data needed for this problem set is contained in worksheet “MBA_504_MAC_502_Problem_Set_#8_F14.xls”
Problem 1: Writer’s Edge is a seller of fine fountain pens. The company has found that, in spite of the growth in online buying, its catalog business is still quite strong. With the holiday season coming Writer’s Edge is planning to run a new direct mail campaign. Relevant information includes:
The cost of printing the holiday season catalog is $30,000 in fixed costs plus $0.23 per catalog.
The cost of mailing each catalog (postage + cost of purchasing names and addresses of potential customers from a list vendor) is $0.39.
Each catalog will
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In addition, you may be transferred to another post in three to six months, so you may have to pass on the responsibility to a successor before too long.
It is 6:00 a.m. Monday morning. You have three hours left at the city headquarters until you leave to begin two weeks of fieldwork in the villages without computer access. The initial order must be placed by next Friday, so you will have to take care of procuring a check from the finance officer and placing the order before you leave.
Other team members are beginning to arrive, but the office is still quiet. Everything else on your plate can wait until you return. Yet, something else could pop up at any moment, so you have to work quickly. You don 't have the latest population or stock figures yet, but the team member who has them will arrive at 8:30 a.m.
Design a spreadsheet that will enable you to request the required funds from your team’s finance officer, order supplies from the home office, and ensure dissemination of appropriate quantities to each village. Your final order to the home office should specify the number of packages required of each item.
a. The population figures show that there are 3,000 children, 2,500 teenagers, 500 seniors, and 9000 other adults in the population. In there are no stocks on hand, what amount would be required for ordering supplies? b. Using the parameters in (a), construct a graph showing how the amount required for the order would vary if the unit cost of
A. Assuming the number of hours Anna Sheen will spend developing the profile section will = 4; Ralph Armentrout’s optimal stocking quantity is 516, as portrayed in the table below:
The 5 minimum purchase costs $62.50, which creates a barrier for those who are willing and able to send something within a tight time constraint. Envelopes should be provided for free, and charged upon the actual service of mailing out the package. Corporations enjoy flexibility. We believe that CPs should be marketed as a product that is great for reliability and speed, making a point that they
b) Determine the quantity demanded, the quantity supplied and the magnitude of the surplus if a price floor of $50 is imposed in this market.
Each week there are 300 pounds of material 1; 400 pounds of material 2; and 200 hours of labor. The output of product A should not be more than one-half of the total number of units produced. Moreover, there is a standing order of 10 units of product C each week.
If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an order is $50, what is the
Lancer group is approached by a Mass merchandise to sell its products with an assortment of Lancer products. The initial purchase order would be of 0.75 million and the estimated order per annum would be 4 million .The other clauses in the deal are as mentioned
Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units, and best case in which sales = 30,000 units.
Problem #2.” (To make your life easier, optimal stocking quantity, Q, is computed by the
The Execution section handles the actual flow of material, products, and services. Included in that is the informational and financial flow of things in and out of the company. The Performance section focuses on all the decision-making process along all of the supply Chains. This software also offers a lot of training for using the software; there is IFS eLearning, Web-Based Training, Classroom Training, Informational Webcasts and Customized Training, all made to help the user work well with the software. This software package is built for a medium to large organization (101- 2000+).
George Lassiter makes t-shirts for special events such as concerts. The upcoming concert presents another opportunity for George to make and sell t-shirts; however the question is how many t-shirts to produce. There are two fundamental case questions that must be answered:
4. Assuming a 20% gross margin for each printer, sea transportation costs of $1 per printer and air transportation costs of $10 per printer (air shipment lead-time is three days), evaluate the various alternatives available to Brent Cartier to address the inventory and service problem.
1. A manufacturing firm is considering three alternatives for automation. They anticipate annual production volume to be 75,000 units. The costs for each alternative are as shown:
The most recent measurements on birth in the United States, and one thing is clear that the general population of Utah
First, if all goes well and consumers are as interested in e-books as Harrison-Keyes anticipates, the company will be able to reclaim its position as a leader in the publishing industry. Specifically, the company predicts that in the first year it should earn $32 million which will increase to $102 million in three years. Also, by successfully implementing its e-book strategy, Harrison-Keyes will be able to expand its customer base to include virtually anyone around the globe with a computeressentially becoming a "boundaryless" organization (Pearce & Robinson, 2005). Also, becoming a worldwide organization will stabilize the company because Harrison-Keyes will be less affected by market fluctuations in certain nations. In addition, by improving its relationship with its employees, Harrison-Keyes can create an environment conducive to becoming a top publishing company. By addressing the concerns of its workforce, particularly job security, Harrison-Keyes will be able to gain the trust and loyalty of its employees. Finally, if the new strategy is a success, the company will attract investors that can help fund new expansion efforts. Recent negative publicity will definitely have an effect on the number of people willing to invest in Harrison-Keyes; however, if the company is able to improve its performance through e-book publishing, investor confidence will improve.
2-B&N and the book publishers are changing their business models to deal with the Internet and e-book technology by B&N developing its own e-readable devised called Nook. In order to meet demand and supply, they started to be actively in control of its supply chain by developing,