Question 1 Steel Works’ products are high quality metal which answer to specific needs. Steel Works’ customers are divided in two categories:
- Customers of the custom division, which develops products for a single customer. This division has a small amount of customers but a lot of products.
- Customers of the specialty division (130 customers who consume 120 different products). The majority of the specialty customers are small (107 of the 130 are small).
The coefficient of variation tells us the variability relative to the average demand. According to the results below, we can see that DURAFLEX R15 has a high coefficient of variance which means that it is very difficult to forecast an inventory level based on an historic demand with high volatility. This is especially true when this product is manufactured by batches of 60 units.
AVERAGE STD COEF VAR PERC SALE
DURABEND R10 15.58 13.19 0.85 0.42
DURABEND R12 1008.00 255.92 0.25 27.30
DURABEND R15 2463.58 494.21 0.20 66.76
DURAFLEX R10 97.25 92.52 0.95 2.64
DURAFLEX R12 18.58 11.43 0.62 0.50
DURAFLEX R15 54.83 80.05 1.46 1.49
DURAFLEX R23 35.58 45.86 1.29 0.97
The amount of inventory they should hold will vary according to the level of service expected. For a level of service at 90%, the level of inventory should be maintained as follows:
AVERAGE STD COEF VAR PERC SALE Historical Av Inv Inv at 90% Serv
DURABEND R10 15.58 13.19 0.85 0.42 73 33
DURABEND R12 1008.00 255.92 0.25 27.30 741 1,338
DURABEND R15 2463.58
In the case “Metalcraft Supplier Scorecard”, the author uses an example of a decision-making problem regarding to which supplier should Metalcraft choose to lead to the topic of the Metalcraft supplier scorecard. Metalcraft, as a component designer and manufacturer, supplies a few largest automobile manufacturers with vehicle parts all over the world. As one of the tier 1 suppliers, Metalcraft offers and ships finished parts and components using in the automobile production process to automakers.
Customer profitability was a determinant used for segmenting and targeting, studies were done on customers’ likes, dislikes and types of products they would benefit from and models were developed to determine their propensity to buy.
MetalWorks is a company that produces and distributes steel file cabinets and lockable steel storage boxes, known in the Industry
|Inventory turnover |180,000/5000 |36 |N/A |Inventory turnover is calculated to determine how quickly the inventory is used based on the services rendered.|
This provides an indication of which items and what quantities to carry in the future.” (Apollo, 2011) This is another area of opportunity to establish a strong inventory system to be able to track items sold and being able to forecast better. Kudler strives to deliver 95% inventory to its customers and in order to do that the strong inventory system must be established.
GIX has multiple customers. Each customer is different, depending on the size of their business. Since GIX is building another location, they are able to take on more customers than their current customer base of 300. We split the customers into three different segments: large, medium, and small. Most of the customers are repeat customers, meaning they are satisfied with what GIX is doing for their business.
Business Model Canvas 1. Customer segments: for whom do we aim to create value? Who are our most important customers? Segments and target. Roxanne Having a healthy lifestyle is becoming more prevalent throughout society.
In determining who the customer is there is a lot of additional work that I needs to be determined before making this assumption. In my present role I currently handle four different segments of the business therefore there are different primary customers. A primary customer to the outdoor handheld GPS world would be anyone wants to explorer the outdoors while having a situational awareness. A secondary customer would be multiple layers of the business and consumer base. This would include customers, managements, investors, engineers, marketing professionals and executives. Another segment of the business that I work with is the dog tracking and training individual. The primary customer in this segment if quite different in comparison to the outdoor GPS handheld segment. The primary customer for the dog business would be an individual that is interested in combining electronics and training equipment to better train and track a dog’s behavior.
In the general merchanting, contracts and plumbing& heating, customers are segmented with a minimum annual sales of £5k and maximum of £1m.
To better understanding the customers, Mr. Selig asked Mrs. Wendy Lamberg, Director of planning, to select a sample of customers and prepare a report. To begin, she has appointed a team of us. Then, we started by selecting a random sample of 60 customers. In
Yes, in the investment center. The managers are responsibility for the segments,investmentand asset base as well as the profits. Usually, evaluate based on the return on assetsemployed, evaluation might include a variety of measures such as profit, return oninvestment, residual income, economical valued added and a range of non-financialmeasures. Hence the manager in the districts should consider about the acquisition of newequipment which is an investment for the segment. And also, they evaluated equipments andaccounts receivable etc. based on the return on assets employed. May be it can also be the profit center because the managers usually evaluated in terms of effectiveness in raisingsegment profit level and controlling costs.QMSC should use EVA instead of ROA as the measure of district and manager performance. Since EVA is the best proxy for shareholder value at the business unit level, improving EVA will also improve the companys overall performance. The managers district objectives will then be congruent with the companys overall objectives. This will induce Mr. Richards to employ additional assets
Sales team – they understand the industry and customer needs. They know the company target segments and whether this product aligns with company value propositions. •
* There is no incentive for a division to expand to the point where the marginal return on investment equals the cost of capital.
Fabricant Manufacturing Corporation constructs and distributes highly specialized metal parts to over 1,000 clients across the Northeast. They are one of the leading facilities, designing, prototyping, and manufacturing engineering flexible materials for solar power, medical, aerospace, and electric power applications. The company’s chief executive officer is looking for ways to continue to meet its demand while providing quality products at a competitive price. The task at hand was to find projects that align with company goals: reduce energy consumption by a minimum of 20 percent, raise community consciousness of environmental issues and concerns, and generate a return on investment of at least 15 percent.