So, we have a distribution with a mean of 20,000 and a standard deviation of 5,102.
The limitations to the estimates of customer profitability is the fact that we have no idea the distance delivered to each customer. This means that each delivery could cost a separate amount, therefore not bringing us to an effective delivery cost based on labor hours.
According to our analysis, So , c) is a betterthe optimal choice whichchoice, which confirmed our aggressive machine buying strategy since Day 135. And on Day 149, and Day 170, we immediately bought machine for station 2 and 1 again when the stationsit becomes bottle neck or when lead time is more than 0.28 which caused revenue decreased to $1,200.
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:
Each question will be worth 25 marks and be divided into two parts; part (a) and part (b). Part (a) asks you to demonstrate descriptive skills and is worth 10 marks, whilst part (b) asks you to display evaluative skills
(2) You and I are in consumer equilibrium. CDs cost 10 dollars each and cassette tapes only
30. The manager of the local National Video Store sells videocassette recorders at discount prices. If the store does not have a video recorder in stock when a customer wants to buy one, it will lose the sale because the customer will purchase a recorder from one of the many local competitors. The problem is that the cost of renting warehouse space to keep enough recorders in inventory to meet all demand is excessively high. The manager has determined that if 90% of customer demand for recorders can be met, then the combined cost of lost sales and inventory will be minimized. The manager has estimated that monthly demand for recorders is normally distributed, with a mean of 180 recorders and a standard deviation of 60. Determine the number of recorders the manager should order each month to meet 90% of customer demand.
We agree with the way the cost per division is being calculated. However, we propose a different way to allocate indirect cost per product based on the number of hours calculated for each product and an estimate of the number of units needed for special effects, concept/design, and artist relations related to each product. Based on the calculations provided by Mr. King, we used the cost per hour or unit shown on the Resource-Based Cost Report to calculate the costs of each resource by product line. Once we had the cost resource-based, we calculated a percentage for Cassettes, CDs, and Digital Sound Tracks (DST). The percentage was applied to the “indirect costs allocated from central office”, shown on the product-type cost report, for each of the previously mentioned products. When we got the indirect costs, we noticed that DST absorbed most of those costs, which increased from $53,227 to $105,590. DST requires a lot more of recording studio hours, extensive special effects, new concept design, and continued artists relations. When comparing the indirect costs for Cassettes and CDs calculated using the Product Type-Based and the Service-Based systems, we noticed that both products’ indirect costs decreased by using the Service-Based system. Cassettes require less recording studio hours, moderate special effects, none modification to the
costs $350,000, that will have a useful life of eight years, and that will have a salvage value of $25,000. If this
With the advancements in home entertainment systems, consumers are investing thousands of dollars into their own home viewing systems. They have several options to stream video content into the comfort of their own homes. Home entertainment systems have also made a large impact on the theater industry. In 2005, this technological advancement was the most sought after electronic system for new homes. It seems that consumers have finally said no to the rising price of movie tickets and concession stand snacks and beverages.
But due to recent emerge of Digital Video Disks (DVDs) Star River Electronics does need to face some problems. The conditions got worsen with the recent resignation of their former CEO. The new CEO Adeline Koh needs to face these problems. Digital Video Disks (DVDs) are expected to cut into the CD-ROM market in the very near future, but with 5%
In an organization, product quality and delivery is largely dependent on the supply chain management which in turn affects the overall profitability. Therefore, supply chain quality control is essential in any organization to ensure a competitive edge in the industry and minimizing the operating costs. Firms are thus competing on the innovation front to stay upfront in meeting customer expectations. One of the industry in which advances in supply chain management have been evolving rapidly is the retail industry. Due to the changing nature of the competitiveness in the retail industry, supply chain managers must come up with expansion plans that align with multiple-channel and geographic growth.
Physical media selection is very daunting task given that there as many products ready in the market that offer wide range
•Part one questions carry 1 mark each & Part two questions carry 5 marks each.