Tag: Supply Chain Management / Operations Management

Nordlund Boat Company has been repairing, refitting, and building custom boats in the Pacific Northwest for over 60 years. One of the engine’s most critical components is the exhaust manifold, and TJ, as the buyer in charge, plays a pivotal role in managing this item. The company purchases this item from the best manufacturers in the world, which is a testament to our commitment to quality.
Under the current ordering practice, TJ’s purchasing agent submits an order for the exhaust manifold every 4 weeks, aligning with the company’s monthly demand of 50 units (2 units per working day). Despite its low volume, Nordlund emphasizes quality over quantity discounts, ensuring its commitment to delivering top-notch products. The supplier’s commitment to deliver within one week of order placement has ensured that Nordlund never experiences a shortage, a key factor in the company’s inventory management.
Accounting has generated the following inventory-related costs. The procurement costs are $50 per order, including labor, transportation, receiving, inspection, and moving costs. The holding cost is $20 per item per year, considering storage, damage, insurance, taxes, etc. The company president has assigned TJ, who recently graduated with an MBA, the responsibility of conducting a thorough assessment of the exhaust manifold procurement process, focusing on enhancing supply chain efficiencies. This directive highlights the potential for substantial cost savings, which is crucial for ensuring the company’s financial well-being.
DISCUSSION QUESTIONS (MAKE NO ASSUMPTIONS). (Keep two decimals)
How many units are ordered under the current practice?
What is the total annual inventory cost of ordering LCDs every 4 weeks?
What is the annual inventory cost if orders are released according to the optimal order quantity model?
What potential cost savings can be achieved by ordering every 4 weeks vs. the optimal quantity model?
What is the LCD’s (ROP) reorder point?

Analytics Exercise 20-4 (Algo)Big10Sweaters.com is a new company started last year by two recent college graduates.
The idea behind the company was simple. It will sell premium logo sweaters for Big Ten colleges with one major, unique feature. This unique feature is a special large monogram that has the customer’s name, major, and year of graduation. The sweater is the perfect gift for graduating students and alumni, particularly avid football fans who want to show support during the football season. The company is off to a great start and had a successful first year while selling to only a few schools. This year it plans to expand to a few more schools and target the entire Big Ten Conference within three years.
You will allocate your aggregate order to the Individual schools based on thelr expected percentage of total demand. You discussedyour analysis with Rhonda and Steve and they are OK with your analysls. They would like to see what the order quantitles would be ifeach school was considered individually.
You are curious as to how much Rhonda and Steve made In their business last year. You do not have all the data, but you know thatmost of thelr expenses relate to buying the sweaters and having them monogrammed. You know they pald themselves $50,000 eachand you know the rent, utilitles, Insurance, and a benefit package for the business was about $17,000.They are paying you $42,000 and you expect your benefit package addition would be about $1,000 per year. Assume that they orderbased on the aggregate forecast.
a. What is the expected pre-tax profit for this year, after deducting salary and overhead? Use average forecast for each school.Assume sales materlalize per the average forecasts and the entire safety stock amount (computed based on aggregate demand)must be sold on eBay.Note: Round your answer to the nearest dollar amount.
b. If they must pay 50% in taxes after deducting thelr venture capital firm payment, how much do you expect thelr business cash toIncrease this year?Note: Round your answer to the nearest dollar amount.

The federal Employee Adjustment and Retraining Notification (EARN) Act requires employers with 100 or more employees to provide employees, bargaining representatives (i.e., unions), and specific government agencies at least 60 days-notice of any mass layoff, plant closing, or plant relocation. The purpose of the EARN Act is to give affected workers and their families some transition time to prepare for the loss of employment, to seek a new job, and/or to seek training in a new skill that will allow the workers to obtain subsequent employment. The EARN Act covers employers with 100 or more employees, not including: employees who have worked less than six (6) months in the last 12 months, and employees who work an average of less than 20 hours a week. A mass layoff is defined as any layoff, lasting six months or more, that affects: (a) either 150 or more workers, or (b) at least 40% of the workforce when the number of laid off workers is between 50 and 149. A plant closing is defined as the closing of a facility for more than six (6) months, or when 50 or more employees are laid off during any 30-day period at a single location. A plant relocation is defined as a move to a location more than 100 miles from the prior location or a move to a location in a different state at least 75 miles from the prior location. The State legislature passed a similar notification law last year that applies to employers with 75 or more full or part-time employees where a minimum of 50 employees are to be laid off due to a plant closing, mass layoff, or relocation of the employer’s business. Unlike the EARN Act, the State law has no requirement that the number of workers to be laid off constitute a minimum percentage of the employer’s workforce. The State law takes precedent over the EARN Act in those situations in which the State law’s statutory requirements are more stringent.
Which action would NOT require the 60-day notification requirement?

Deshaun needs a(n) strategy
Deshaun needs a(n) strategy to ensure that customers have a unified experience when communicating with the company through the Website, by phone, or face-to-face with sales representatives.
A successful e-commerce system must address the many stages that consumers experience in the sales life cycle. Identify which e-commerce stage is represented in each scenario.
After-sales service
: Reggie calls the vendor of his new 3-D printer for instructions on how to troubleshoot a setup problem.
Select & negotiate
: Leon emails his supplier’s customer service department to discuss the possibilities of switching to a different shipping provider.
Purchasing
: Casey takes inventory of office supplies running low in the mailroom and also emails team leaders for a list of needed supplies. She then checks to confirm inventory numbers on the supplier’s Website.
Search & identification
: Lindsey chats online with her supplier’s customer service representative to set up a new corporate account that reflects updated information after her company’s merger.
When building a Website, you should first decide which tasks the site must accomplish. Most people agree that an effective Website is one that creates an attractive presence and that meets the needs of its visitors. Identify the Website function most important to the user in each scenario.
Obtaining contact information
: Stacey is researching his first car purchase and wants to make sure he gets a reliable car that will provide excellent gas mileage.
Providing product testimonials
: Fernanda is planning to buy a house and needs more information about her mortgage options.
Obtaining financial information
: Connie dropped her phone and cracked the screen. She’s only had it for 6 months and doesn’t want to buy a new one.
Obtaining warranty information
: Jeffrey needs to talk to the HR department at his company’s home office, which is located in another state.

The Morning Brew Coffee Shop
The Morning Brew Coffee Shop sells​ Regular, Cappuccino, and Vienna blends of coffee. The​ shop’s current daily labor cost is $ 320 the equipment cost is $ 125 and the overhead cost is $ 225 Daily​ demands, along with price and material costs per​ beverage, are given​ below:
Current Product Line
Regular Coffee
Cappuccino
Vienna coffee
Beverages sold
400
200
150
Price per beverage
$ 2.00
$ 3.00
$ 4.00
Material per beverage​ ($)
$ 0.50
$ 0.75
$ 1.25
Harald​ Luckerbauer, the manager at Morning Brew Coffee​ Shop, would like to understand how adding Eiskaffee​ (a German coffee beverage of chilled​ coffee, milk,​ sweetener, and vanilla ice​ cream) will alter the​ shop’s productivity. Her market research shows that Eiskaffee will bring in new customers and not cannibalize current demand. Assuming that the new equipment is purchased before Eiskaffee is added to the​ menu, Harald has developed new average daily demand and cost projections. The new equipment cost is $ 200 and the overhead cost is $ 350 Modified daily​ demands, as well as price and material costs per beverage for the new product​ line, are given​ below:
Modified Product Line (with Eiskaffee)
Regular Coffee
Cappuccino
Vienna coffee
Eiskaffee
Beverages sold
400
200
150
125
Price per beverage
$2.00
$ 3.00
$ 4.00
$ 6.00
Material per beverage​ ($)
$ 0.50
$ 0.75
$ 1.25
$ 2.00
a. Calculate the change in labor and multifactor productivity if Eiskaffee is added to the menu. ​(Note: Be sure to round each individual labor and multifactor productivity to no fewer than two decimal places before calculating the percentage​ changes.) The change in labor productivity if Eiskaffee is added to the menu is enter your response here​%. ​(Enter your response as a percent rounded to two decimal places and include a minus sign if productivity​ decreases.) The change in multifactor productivity if Eiskaffee is added to the menu is enter your response here​%.

Part One: Common Information for Each Country
Basic Country Facts Information
United StatesCountry Selected for Course Project
Government Type
[Insert text.][Insert text.]
Commonly Spoken Languages
[Insert text.][Insert text.]
Commonly Practiced Religions
[Insert text.][Insert text.]
Business Etiquette Information
United StatesCountry Selected for Course Project
How to Greet Men and Women
[Insert text.][Insert text.]
General Negotiating Styles
[Insert text.][Insert text.]
Acceptable Business Attire
[Insert text.][Insert text.]
Identify three tips for doing business in the non-U.S. country you selected for your project. [Insert text here.]
Part Two: Hofstede Model of National Culture
[For each of the six cultural dimensions in Hofstede’s model of national culture, list the score for both countries. To find the scores, use the Hofstede Insights: Country Comparison Tool. When you select both countries, the tool will give you the scores. To learn about the implications of those scores, select the option to read more about your selected countries.]
Cultural Dimension
United States
Country Selected for Course Project
Power Distance Index (PDI)
[Insert score.]
[Insert score.]
Individualism Versus Collectivism (IDV)
[Insert score.]
[Insert score.]
Motivation Towards Achievement and Success (MAS)
[Insert score.]
[Insert score.]
Uncertainty Avoidance Index (UAI)
[Insert score.]
[Insert score.]
Long-Term Orientation
[Insert score.]
[Insert score.]
Indulgence
[Insert score.]
[Insert score.]
Part Three: Conclusions
[Briefly describe each Hofstede cultural dimension and comment on the score differences between both countries.]
Identify any significant differences in scores between the two countries and provide conclusions on the impact of the differences. [Insert text here.]
List conclusions on the differences in doing business between your two countries based on cultural dimension scores. [Insert text here.]

456 CHARTER II – NETWORK MODELS
Case Study: Southwestern University Traffic Problems
Southwestern University is experiencing increased congestion in its football program now that a high‑profile coach has been hired. This influx means additional reserves, but it has also increased complaints due to the traffic problems associated with the football games. Marty Sour, SWU’s president, has asked the university to plan based on traffic projections. Dr. Sour would hope to have sufficient capacity so that 35.000 cars per hour could travel from the stadium to the intersection following the in‑service highway. To alleviate congestion and increase capacity, the city is considering various improvements. The numbers of cars (in 1,000s) per hour for the relevant links are shown in Figure 11.34.
Because the major problem will be after the game, possible measures include where streets close to the stadium being transformed into one‑way streets for a short period after each game with police officers directing traffic. Figure 11.34 indicates that the final number of cars per hour that may leave the stadium (node 1) is 30,000. The numbers of cars that may pass through nodes 2, 3, and 4 (or links 5, 6, and 7) are given as appropriate capacities in the figure. Therefore, Dr. Lee has prepared alternative expansions while routing traffic by the cheapest options. Based on past experience, it is assumed that as long as the net outflow capacity is within 2.500 cars per hour of the number that leave the stadium, the problem is not too severe. However, the severity of the problem proves dramatic for an additional 1,000 cars that are enabled to leave the streets.
Figure 11.34 — Roads from Stadium to in‑service
Discussion Questions
If there is no expansion, what is the maximum number of cars that may actually arrive from the stadium to the intersection?
If the cost for expanding a short section were the same for each section, how many expansions would be needed to obtain a total capacity equal to 35.080 per hour?

SavedProblem 3-10 (Algo)
Tuff Wheels has forecast the demand and the cost project for a new product to be added to its small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a minlature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The following table contains the relevant information for this project.
Item
Value
Development cost
$850,000
Estimated development time
Pilot testing
$200,000
Ramp-up cost
$400,000
Marketing and support cost
Sales and production volume
$150,000 per year
Unit production cost
$100
Interest rate
8%
Tuff Wheels also has provided the project plan shown as follows. As can be seen in the project plan, the company thinks that the product life will be three years until a new product must be created. Assume all cash flows occur at the end of each period.
a. What are the yearly cash flows and their present value (discounted at 8 percent) of this project? What is the net present value?
Note: Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand.
◻ Net present value
b. What is the impact on NPV for the Kiddy Dozer If the actual sales are 50,000 per year? 70,000 per year?
Note: Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermedlate calculations. Round your answer to the nearest thousand.
Scenario
Value
NPV 50,000
NPV 70,000
c. Based on the original sales level of 60,000, what is the effect on NPV caused by changing the discount rate to 9%, 10%, or 11%?
Note: Enter your answer in thousands of dollars. Perform all calculations using Excel. Do not round any intermediate calculations. Round your answer to the nearest thousand.
Discount rate
NPV
NPV 9%
NPV 10%
NPV 11%

5. Leader-member exchange and inspirational leadership
For each scenario, identify what kind of leadership is involved.
Example
Kind of Leadership
When employees raise problems at staff meetings, Jonna doesn’t solve them. Instead, she asks the employees what approaches they would like to try. Her employees know they can suggest any solutions, even those that imply criticism of Jonna’s management.
To motivate longtime employees who are at or past retirement age to stay with the company so the organization does not lose their expertise and deep relationships with customers, Columbia Office Furniture structures its retirement savings plan to make larger contributions to these employees’ accounts each year.
Use your knowledge of inspirational leadership to answer the following questions.
What is the relationship between leader-follower communication and performance in in-groups and out-groups?
For in-groups, more communication is predictive of higher performance, for out-groups, more communication is predictive of lower performance.
For both in-groups and out-groups, more communication is predictive of higher performance.
For in-groups, more communication is predictive of lower performance, for out-groups, more communication is predictive of higher performance.
For both in-groups and out-groups, more communication is predictive of lower performance.
Which of the following are dimensions of transformational leadership? Check all that apply.
Ambition
Use of rewards
Intellectual stimulation
Individualized consideration
Which of the following best describes charismatic leadership?
Charismatic leadership always produces negative behaviors in followers.
Charismatic leadership can lead to both positive and negative behaviors in followers.
Charismatic leadership always produces positive behaviors in followers.

Read the scenario below and answer ALL the questions that follow. You work for a software development company. Your software development team is working on a complex program that involves integrating multiple systems. One potential risk is that a critical system may fail, which could cause delays and increase costs. Your job is to mitigate this possible risk and other project risks, and to evaluate the impact on the project’s scope, timeline and budget. You may then be required to develop a contingency plan that includes regular testing of the integrated systems and a process for quickly identifying and resolving issues. Choose any company as you see fit to contextualize the foregoing scenario of project risk.
QUESTION 1(20 Marks)
Risk management is about maximizing your chances of project success by identifying risks early on and planning how to manage them. Of the seven (7) examples of project risks that you have studied, identify AT LEAST FIVE (5) that are applicable to your project and contextualize each one through your discussion.
QUESTION 2
An approach of identifying project risks is to establish risk categories. Present the risk categories and the associated risks within each category as applicable to your project.
QUESTION 3
The Plan Risk Response Process is designed to ensure that project risks are mitigated against effectively. Appraise the Plan Risk Response Process in the context of your project.
QUESTION 4
There are various techniques for identifying project risks that you are studied. Appraise how the use of the Delphi Method technique to analyze your project risks could have been used effectively.
QUESTION 5
Use the risk assessment process and contextualize your project risks. The step by step risk assessment process needs to be presented precisely to show how you will go about assessing your project risks.