Category: Management

A manufacturing organization is in the decline phase of its life cycle. The organization’s largest customer has notified the CEO that it plans to withdraw its business over the next two years. The CEO and their staff must consider options to replace the lost revenue related to this customer account. The company’s employees are nervous and uncertain about their future. Two options are quickly identified to replace the expected loss of revenue.Option 1 is to develop a new product that could be manufactured and delivered in one week while the competition delivers product in six weeks. To compete successfully with this approach, the company would also need to design an order entry system so customers could place orders online. This strategy requires engineering to design the product line. It also requires IT staff to design the software and customer portals, marketing and sales to develop sales literature and pricing models, manufacturing to prepare for production, and HR to develop the workforce plan.Option 2 would be to acquire a struggling competitor and quickly turn that company around.
The CEO has asked the HR manager to assess possible HR issues for both of these options.Which would be the best strategic action for the HR manager to use to demonstrate HR’s value in the new product venture from Option 1?

Homer was the sole shareholder of two corporations, CrustyBurgers and QuickyMart. At the organizational meeting for these corporations, as sole shareholder, he appointed himself Chairman of the Board (other members of the board were Bart and Lisa) and Chief Exectutive Officer for both companies.
He initially contributed $100,000 (a sum that would be considered adequate capital at the time) into each of the corporations in exchange for all of their stock. This money was deposited into separate accounts for each corporation.
Shortly after this meeting, Homer met with Spamour Meat Company to arrange for a long-term (three year) hamburger supply contract on behalf of CrustyBurgers. Spamour was to deliver $20,000 worth of hamburger on the first of the month, and CrustyBurgers was to pay for the meat at the end of the month.
For the first year, this arrangement worked well, with Homer basically breaking even with CrustyBurgers. Meanwhile, QuickyMart was a complete success.
The next year, Homer held an annual meeting for each corporation. However, after this meeting, things started to go poorly for CrustyBurgers. Sales plummeted, and there was only $5000 in the CrustyBurger account to pay Spamour. However, Spamour was aware of Homer’s success with QuickyMart and thought he could

The university administration would like to add some additional parking locations. To make everyone happy, they would like each building to be within a 5 minute walk of at least one set of new parking spaces (the spaces will be added in blocks of 10 parking spaces). The university is considering six locations for the new parking spaces, but would like to minimize the overall cost of the project. In addition to the walking time requirement, the university would like to add at least 40 new parking spaces (at least 4 blocks of 10). To help with the decision, the management science department formulated the following linear programming model:
Min 400×1 + 375×2 + 425×3 + 350×4 + 410×5 + 500×6
s.t.
x1 + x2 + x5 + x6 ≥ 1 {Residence Hall A constraint}
x1 + x2 + x3 ≥ 1 {Residence Hall B constraint}
x4 + x5 + x6 ≥ 1 {Science building constraint}
x1 + x4 + x5 ≥ 1 {Music building constraint}
x2 + x3 + x4 ≥ 1 {Math building constraint}
x3 + x4 + x5 ≥ 1 {Business building constraint}
x2 + x5 + x6 ≥ 1 {Auditorium constraint}
x1 + x4 + x6 ≥ 1 {Arena constraint}
x1 + x2 + x3 + x4 + x5 + x6 ≥ 4 {Total locations constraint}
xj = 1, if location j is selected; 0, otherwise
Which of the locations is within 5 minutes of the science, music, math, and business buildings?

Your firm uses a periodic review system for all SKUs classified, using \( A B C \) analysis, as \( B \) or \( C \) items. Further, it uses a continuous review system for all SKUs classified as A items. The demand for a specific SKU, currently classified as an A item, has been dropping. You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your firm operates 52 weeks per year; the item’s current characteristics are:
Demand ( \( D \) ) \( =13,000 \) units/year
Ordering cost (S) = \$130.00/order
Holding cost \( (\mathrm{H})=\$ 4.00 / \) unit/year
Lead time (L) = 6 weeks
Cycle-service level = 97\%
Demand is normally distributed, with a standard deviation of weekly demand of 60 units.
a. Calculate the item’s EOQ.
EOQ = units. (Enter your response rounded to the nearest whole number.)
b. Use the EOQ to define the parameters of an appropriate continuous review and periodic review system for this item. Refer to the standard normal table when necessary.
Under a continuous review system, order 919 units whenever the inventory level drops to 1776 units. (Enter your responses rounded to the nearest whole number.)
Under a periodic review system, order up to units every weeks. (Enter your responses rounded to the nearest whole number.)

Dr. Morris Lebovitz and Kerrye Hill Lebovitz
Dr. Morris Lebovitz and Kerrye Hill Lebovitz, husband and wife, were residents of the state of Tennessee. Dr. Lebovitz filed for bankruptcy protection as a result of illness. Mrs. Lebovitz (Debtor) filed for bankruptcy because she had co-signed on a large loan with Dr. Lebovitz. The Debtor is the owner of the following pieces of jewelry: a Tiffany 5-carat diamond engagement ring (purchase price $40,000 to $50,000), a pair of diamond stud earrings of approximately 1 carat each, a diamond drop necklace of approximately 1 carat, and a Cartier watch. All of these items were gifts from Dr. Lebovitz.
Tennessee opted out of the federal bankruptcy exemption provisions and adopted its own bankruptcy exemption provisions. Tennessee does not provide for an exemption for jewelry. The state does provide for an exemption for “necessary and proper wearing apparel.” Debtor claimed that her jewelry was necessary and proper wearing apparel and was therefore exempt property from the bankruptcy estate. The bankruptcy trustee filed an objection to the claim of exemption, arguing that the Debtor’s jewelry does not qualify for an exemption and should be part of the bankruptcy estate.
Q1:
Does Debtor’s jewelry qualify as necessary and proper wearing apparel, and should it thus be exempt property from the bankruptcy estate?

For this question, you are required to prepare an analysis that discusses the role of strategic operations management in enabling and preserving competitive advantage in an organisation involved in both manufacturing and service operations.
As part of the write-up, assume that you are responsible for running the operations of this organisation and think in more detail about the major differences, including the nature of products of both manufacturing and service industries.
You are then required to write a report based on the result of the above review of the major differences identified.
Your report should further analyse the specifics and differences in the nature of the operations management in organisations involved in both the manufacturing and service industries.
A very important strategic factor in achieving sustainable long-term competitive advantage for manufacturing and service operations in a dynamically changing global environment is innovation.
Therefore, as part of your report, explain what innovative strategies you would adopt for achieving the organisation’s long-term development in a changing global environment.
Your report must further highlight how adopting lean (Just-in-time) principles can assist the company to become more competitive and gain an advantage over its rivals.