SNAPDEAL Case Solution Final

Key Issue 2: Is $1b appropriate to enhance UST’s firm value and ultimately shareholder value?

Barbara Printup has done an adequate job creating data related to price models and demand scenarios in order to provide thoughtful analysis for

(i.e. products that they get to order only once because of long supplier lead times). First they determine a forecast for an item and then they have a process for converting that forecast into an order quantity.

In the Fixed-Order Quantity Model (Q-Model), every time that the stocks reach a specific level an order is placed. Q-Model requests a constant monitoring in inventory levels. The risk of stock out only occurs during the lead time, thus the safety stock is less than in P-Model for the same service level. Reorders are placed when stocks reach (R), and the safety stock that must be reordered is:

If line 9 is larger than line 10, then congratulations, you will be getting money back from Uncle Sam.

B. b. Perfect order measure/fill rate: This method measures the error-free rate of each step in the supply chain. Error occurs when the customer has an unsatisfactory experience with the power tool they purchased because of errors and delays in the supply chain. The complexities of an extended supply chain make the odds against fulfilling a perfect order challenging.

|(Example) | | | |If the inventory turnover is high, this means the hospital does not have enough inventories on hand to |

The following transactions took place during the year (all purchases and services were acquired on account):

“...if the amount of future rebates or refunds cannot be reasonably and reliably estimated, a liability (or deferred revenue) shall be recognized for the maximum potential

Account for the numerical sequence of invoices, shipping documents, and credit memos (S‑5; S‑6; S‑7).

Low Inventory Trunover: the product sits 255 days on average in inventory before being sold;

d. Trace the date, check number, and amount of outstanding item – Occurrence & Completeness. (AU-C 315.A114 a.i-ii)

Dr Pepper could always do nothing at this time. During the stand down they could evaluate mergers, joint ventures, or buyouts as they market strengthens.

when a wide range of goods is put into each shipment and it offsets the smaller volume of bulk orders.

The keys to the company’s future value and growth are profitability (ROE) and the reinvestment of retained earnings. Retained earnings are determined by dividend payout. The spreadsheet sets ROE at 15% for the five years from 2006 to 2010. If Reeby Sports will lose its competitive edge by 2011, then it cannot continue earning more than its 10% cost of capital. Therefore ROE is reduced to 10% starting in 2011.