Operation Decision
Assignment 1: Operation 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. It also tells us 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.
This assignment allows you to determine the specific details about this fictitious company in order to conduct an environmental scan of this company
1. Briefly describe the details of the fictitious business that you created for this assignment.
In this paper, you will learn of a fictitious business, DCM, Inc., based out of Athens, Georgia and is the leading provider of consumers, especially college students, and business-to- organizations of a product known as widgets.
DCM, Inc. employees 100 workers and they have hired in a consultant for advice to help them decide whether it should shut down, or if it has enough work to continue operations. DCM, Inc. was established in 2008 by Denise Brinson, which named the organization after herself, and her two adult children, Christopher and Misti. Now, all three are attending college and she developed these particular widgets to help all college students including herself and her children. Due to area competition and technological advancement, Denise has found that she must make some changes in the organization and/or product.
Other information about DCM includes:
• They employ 100 workers
• They produce 6,000 units of output per month
• They work 20 days/month
• The average daily wage is $70/worker
• The firms output is $32
• The cost of other variable inputs is $2,000/day
The consultant is told
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. It also tells us 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.
This assignment allows you to determine the specific details about this fictitious company in order to conduct an environmental scan of this company
1. Briefly describe the details of the fictitious business that you created for this assignment.
In this paper, you will learn of a fictitious business, DCM, Inc., based out of Athens, Georgia and is the leading provider of consumers, especially college students, and business-to- organizations of a product known as widgets.
DCM, Inc. employees 100 workers and they have hired in a consultant for advice to help them decide whether it should shut down, or if it has enough work to continue operations. DCM, Inc. was established in 2008 by Denise Brinson, which named the organization after herself, and her two adult children, Christopher and Misti. Now, all three are attending college and she developed these particular widgets to help all college students including herself and her children. Due to area competition and technological advancement, Denise has found that she must make some changes in the organization and/or product.
Other information about DCM includes:
• They employ 100 workers
• They produce 6,000 units of output per month
• They work 20 days/month
• The average daily wage is $70/worker
• The firms output is $32
• The cost of other variable inputs is $2,000/day
The consultant is told
References: Albrecht, K., (1994). The Northbound Train: Finding the Purpose, Setting the Direction, Shaping the Destiny of Your Organization. New York: AMACOM, 1994. Anthony, J., (2011). Retrieved from: http://www.microsoft.com/business/en- us/resources/startups/business-opportunities/5-signs-in-its-time-to-close-your- business.aspx?fbid=fzSvmp5NXEe Business Dictionary.com (2010). Retrieved from: www.businessdictionary.com/definition/environmental-scan.html Michaels, R.J. (2011). Transactions and Strategies. 1st Edition. Cengage Learning. Mason, OH Reh, J.F. (2012) Key Performance Indicators (KPI) retrieved from: http://manaagement.about.com/sc/generalmanagement/a/keyperfindic.html