Operations Decision
This business makes hand-crafted chairs in New Mexico. The chairs are made for a company that brands them and markets them through a variety of channels. Wood is either local or from Colorado, and the craftspeople have modest woodworking skills to construct the chairs.
The environment is competitive for this product. Chairs are a fairly easy product to make. The more trade agreements the government signs, the more competition there is for this business. Our company, therefore, has very limited bargaining power over the buyers, because the buyer can substitute product from Mexico, China and a number of other low cost sources. Only lower shipping costs and the strong established relationship seem to be in our favor.
The contract of this major buyer is the main determinant of whether or not we will shut down. The buyer in turn is affected by the global furniture market, tariffs and trade barriers, the…...
Operations Decision
Assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision as to whether it should shut down completely or continue its operations. It currently uses 100 workers to produce 6,000 units of output per month (working 20 days / month). The daily wage (per worker) is $70, and the price of the firm's output is $32. The cost of other variable inputs is $2,000 per day. You are told that the firm's fixed cost is "high enough" so that the firm's total costs exceed its total revenue. The marginal cost of the last unit is $30.
Rough Financial Statement
Revenues
$ per Unit
Total
Expenses
orkers
Price Per Day
$70.00
Number of Days
Subtotal
$140,000.00
Variable Costs
$2,000.00
Subtotal
$40,000.00
Total
$180,000.00
Gross Revenue
$12,000.00
Business Overview
The company currently represents one of the last apparel manufactures that still manufactures all of its products in the United States. The company has been able to maintain its U.S.…...
Institute for Global Labour and Human Rights. (2005, June 20). How Can Wal-Mart Sell a Denim Shirt for $11.67? Retrieved from Institute for Global Labour and Human Rights: http://www.globallabourrights.org/reports?id=0042
Operations Decisions
Market structure is a microeconomics term that encompasses the interconnected attributes of a market. The variables examined when considering market structure include characteristics of buyers and sellers, competition, product differentiation, and ease of moving into and from the market. Factors such as the number and strength of buyers and sellers, along with any collusion that may develop among them, are very influential on market structure, as evident in this discussion. An analysis of the competition will consider the occurrence and degree of product differentiation that is occurring. Finally, two important attributes of market structure are the ease of entry and exit from the existing market.
Traditionally, four fundamental market structure types are recognized: 1) Perfect competition, in which many buyers and sellers engage without being able to control prices; 2) Oligopoly, in which a number of large sellers have established some control over prices; 3) Monopoly, in which a single…...
Operations Decision" Assume hired a managing consultant a company offer advice make a decision shut completely continue operations. It 100 workers produce 6,000 units output month (working 20 days / month).
Operations decisions
Details of the business
Miller Inc. is a manufacturer of a fast moving soap, Socas which is available as a bar of 250g, 500g or 1 kg. The company is named after Michelle Miller who is an industrial chemist who invented the soap. The company's strengths include the seemingly endless funds that the company has from Michelle's father, Turner Miller who is the owner of Turner Pharmaceuticals, which was handed down to him from his father. The other strength of the company is that it has a strong board of directors who have wide experience in the fast moving consumer goods industry and hardworking. However, the company has one major weakness, which is that Michelle has been running it…...
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References
Banker, R.D., Bardhan, I.R., Chang, H., & Lin, S. (2006). Plant Information Systems, Manufacturing Capabilities, and Plant Performance. MIS Quarterly, 30(2), 315-337. doi: 10.2307/25148733
Fairise, X., & Feve, P. (2006). Labor Adjustment Costs and Complex Eigenvalues. Economic Theory, 29(1), 95-110. doi: 10.2307/25056110
Operations Decisions
Outline a plan that will assess the effectiveness of the market structure for the company's operations. Note: In Assignment 1, the assumption was that the market structure [or selling environment] was perfectly competitive and that the equilibrium price was to be determined by setting QD equal to QS. You are now aware of recent changes in the selling environment that suggest an imperfectly competitive market where your firm now has substantial market power in setting its own "optimal" price
In the recent decade or two, there has been an increase and proliferation in microwavable food products in the consumer market. In the present day society, with both parents working late and with an increase in the household income generated, these sort of products are not just convenient for the family, but actually deemed a delight in gourmet food, devoid of having to go to a restaurant. In addition, these food…...
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References
Arnold, R. (2008). Economics. Ohio Thompson Higher education.
Keat, P. G., Young, P.K. Y., & Erfle, S. E. (2013). Managerial Economics: Economic Tools for Today's Decision Makers. New York: Prentice Hall.
Mudida, R. (2003). Modern Economics. Nairobi: Focus Books
McGuigan, J., Moyer, R. C., Harris, F. (2014). Managerial Economics. Ohio: Cengage Learning.
fictitious business that you created for this assignment.
Light Up the Sky, Inc. is a company that manufactures luminescent kites. This company has been in business for the past 10 years and during this time has established itself as a high quality manufacturer of these kites. Even though this company appeals to a small fraction of the entire kite industry, they had been able to maintain a 20% profit margin. Due to the lagging economy, their profit margin dropped below the breakeven point and they are now considering shutting down production.
Assess the current environmental scan factors. Determine the factors that will have the greatest impact on plant operations and management's decision to continue or discontinue operations.
When considering whether or not to continue operations, there are several factors to consider. First is to perform a market analysis to determine whether or not continuing operations is really feasible. For example, luminescent kites…...
To reduce inventory management costs and errors, enterprise must form a strong, galvanizing connection with suppliers, buyers, internal production, and customers most of all. In conclusion, inventory management will always be part art and science, as tacit & implicit knowledge is needed to provide greater insight into the analysis generated fro enterprise software applications specifically designed to streamline inventory management. The inherent unquantifiable aspects of demand management will also make inventory management a continually difficult, complex problem enterprises must confront daily to stay profitable and grow.
eferences
Forecasting and Demand eferences
Leung, S. (2003, Oct 01). Where's the beef? A glutted market leaves food chains hungry for sites; finding spots for new outlets takes heaps of research and an eye for details; hint: Move next to Wal-Mart. Wall Street Journal, pp. a.1-a.1.
Meng, F., Tepanon, Y., & Uysal, M. (2008). Measuring tourist satisfaction by attribute and motivation: The case of a nature-based resort.…...
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References/KurawarwalaMatsuo1996.pdf
Mathaba, S., Dlodlo, N., Smith, a., & Adigun, M. (2011). The use of RFID and web 2.0 technologies to improve inventory management in south african enterprises. Electronic Journal of Information Systems Evaluation, 14(2), 228-241. Link:
Best of all, any initiative in these areas, priced fairly for the island natives, delivers significant social value, or economic good for the nation and abodes by Mr. Morale's belief that in the long run, economics drives everything needs to be added to that by doing these core processes well, his company is doing good. The social conscience of Mr. Morales is also clear, and the ability to take the company's respected process-centric approach to problem-solving and apply it to the needs of Kava while at the same time earning a profit is a win/win for both the company and the nation. The concentration on healthcare especially and the development of a pediatrics clinic, potentially even underwritten by the local government for the citizens would also be significant in its contribution and revenue potential.
What Alex and Nik need to do is find broken processes in key areas and set…...
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References
Alstyne, Marshall van, Erik Brynjolfsson, and Stuart Madnick (1997). "The Matrix of Change: A Tool for Business Process Reengineering." MIT Sloan School Working Papers available on the Internet, accessed on February 5, 2007:
Alstyne, Marshall van, Erik Brynjolfsson, and Stuart Madnick (1995). "Why Not One Big Database? Principles for Data Ownership." Decision Support Systems 15.4 (1995): 267-284.
The Agenda (2003) - Chapter 4: Put Processes First. The Agenda: What Every Business Must Do to Dominate the Decade. Accessed from Michael Hammer and Company website on February 5, 2007:
Operation Barbarossa
The German invasion of the Soviet Union in 1941 is perhaps one of the most crucial turning points of World War II, as hubris of Adolf Hitler and the German high command was rewarded with an unexpected defeat. Code-named Operation Barbarossa, after a medieval German ruler, the German invasion was doomed from the start, based as it was upon a number of assumptions regarding the Soviet ability to repel an attack and the estimated length of the operation. By examining the immediate context of Barbarossa as well as the planning and outcome of the operation, one is able to see how the catastrophic German defeat in the Soviet Union set the stage for the Nazi's eventual downfall.
The plans for Operation Barbarossa were first drawn up in February of 1941, but Hitler's desire to invade ussia had been made clear years before, such that one may view Barbarossa as the…...
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References
Dziewanowski, M.K. (1994). Polish intelligence during world war II: The case of barbarossa.
East European Quarterly, 28(3), 381-381.
Hooker, R.D., J. (1999). "The world will hold its breath": Reinterpreting operation barbarossa.
The management at Stickley Furniture revealed that the demand for their products tends to increase during the first and third quarters, whereas it reveals descendant trends throughout the second and fourth quarters. Given these fluctuations then, the organizational leaders have striven to develop a level production plan that ensures steady output and steady labor force. The plan sees that "during the second and fourth quarters, excess output goes into inventory; during the first and third quarters, excess demand is met using inventory. The company's policy of level output coupled with seasonal demand patterns means that prior to peak demand periods, excess output is used to build up inventories, which is then drawn down when demand exceeds production capacity during periods of peak production" (case).
The plan is simple and logic, yet it is met with some limitations. A first of these limitations is given by the changing needs of customers…...
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References
Stickley Furniture Case Study
Fredendall, L.D., Hill, E., 2001, Basics of Supply Chain Management, CRC Press, ISBN 1574441205
Reeser, C., Loper, M., 1978, the Case of the Mexican Crazy Quilt, Management: The Key to Organizational Effectiveness, Revised Edition
46). Likewise, Gillispie suggests that an incremental approach can be used to "test the waters" for even very small companies seeking to project an internationalized presence. In this regard, Gillespie recommends that companies, "Craft a scaleable master design that represents the major aspects of your business worldwide and anticipates the degree of localization that will be required in each market. The degree of localization can have a real impact on budgets and timelines" (2008, p. 45). These are important factors for companies in general where limited resources and a lack of experience may preclude more aggressive internationalization initiatives, and these issues are directly related to a company's internal resources as discussed further below.
Internal resources
The company has a wide range of specialized internal resources which are described in Table 2 below.
Table 2
Internal resources of BG Limited
Business Unit
Description
Specialist Cleaning
BG's Specialist Cleaning division offers a comprehensive range of services designed to restore…...
Operations Management
A microbrewery in Colorado is growing rapidly. There is a long lead time for the purchase of new equipment, so management must make a demand forecast for the next couple of years in order to ensure that it has the capacity it needs to continue expansion. There are constraints, however, in particular with respect to access to key inputs. This casts uncertainty on the demand forecasts, such that simple extrapolation of current growth rates is going to be insufficient. A decision tree is used to help with the demand forecasting, taking into account different scenarios with respect to the growth patterns and the growth constraints.
This paper is based on a real world situation. The situation at hand is that of a small microbrewery, operating in Colorado. The microbrewery is five years old and has expanded annually since its inception. The brewery produces five beers regularly, and these are available…...
Decision Sciences
Decision-making is an important activity for top management in any enterprise. Strategic thinking is required for making useful decisions. For example, business executives plan strategies to access market share, to deal with employees, to react to competition and to decide on career growth. Decision Sciences is a discipline on its own that provides techniques and methods to take decisions in any practical situations. In this paper, a list of journals and websites that provides information on Decision Sciences is provided. This list is expected to be useful to top management. (America's Investment in the Future: Decision Sciences-How the Game Is being played)
Decision Sciences" is a quarterly, professional journal published by Decision Sciences Institute. This journal utilizes the current methods of mathematics and statistics along with computer technology and behavior science. This journal is read by business professionals and teaching professionals. From 2003, Blackwell Publishing is publishing this journal. (Decision…...
Asia Pacific Decision Sciences Institute: Theme - Collaborative Decision Making in the Internet Era" retrieved at Accessed on 22 February 2005http://www.calpoly.edu/~eli/apdsi/apdsi2005/ .
Operation Just Cause was the United States (U.S.) military invasion of Panama that deposed Manuel Noriega in December 1989, during the administration of President George H.W. ush. The military incursion into Panama began on December 20, 1989, at 0100 local time. The operation involved 24,000 U.S. troops and over 300 aircraft - including AH-64 helicopter gunships, AC-130 aircraft and F-117A stealth aircraft, which was used for the first time in combat. These were deployed against the 16,000 members of the Panama Defense Force. This action was preceded by over a year of diplomatic tension between the United States and Panama, including an attempted coup against Noriega, and several months of U.S. troop buildup in military bases within the former Panama Canal Zone.
The operation began with an assault of strategic installations such as the civilian Paitilla airport in Panama City and military command centers throughout the country. The attack on the…...
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Bibliography
Bob Woodward, The Commanders (New York: Simon & Schuster, 1991).
These two techniques of reflexive and logic-reasoning are very effective in creating consensus and insight form multiple decision makers over time (Muller, Turner, 2010). In the long-term, this technique of decision making and the involvement of the leaders on Kava can potentially reduce their resistance to the development as well.
After Nik and his team have defined their common vision, mission and objectives, they need to also define the strategies and alternatives to attain them. The strategies must be done at as little cost and risk as possible as Mr. Morales' comments in the case study indicate only a small budget is available. The team also needs to concentrate on the socially responsible nature of the decisions as well, as Mr. Morales has stated that he wants any project done on Kava to be consistent with show great respect for the citizens of the island nation, be highly ethical, and…...
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References
Alstyne, Marshall van, Erik Brynjolfsson, and Stuart Madnick (1997). "The Matrix of Change: A Tool for Business Process Reengineering." MIT Sloan School http://ccs.mit.edu/papers/CCSWP189/ccswp189.html
Muller, R., & Turner, R.. (2010). Leadership competency profiles of successful project managers. International Journal of Project Management, 28(5), 437.
Pandelica, I., Pandelica, a., & Dabu, B.. (2010). The Response of Organizations in Crisis Conditions. Journal of American Academy of Business, Cambridge, 15(2), 151-160.
Paul, R. And Elder, L. (2001) - Critical Thinking-Tools for Taking Charge of Your
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