Supply Chain Task 1
Supply Chain-Operations Management JCT2 TASK 1
MBA 9/1/2014
Part A
Cumulative Balanced Scorecard ending with Quarter 4
Income Statement showing Quarters 1-4
Balance Sheet showing Quarters 1-4
Part B
B1: Evaluate how you utilized budgets and pro-format statements to plan funding of the production capacity you needed to achieve your business goals.
At the end of the first quarter I had a net income of $-338,500.00, which was not a huge surprise given that I had not yet sold anything and was trying to get the business off the ground. I knew however, that in order for the business to be successful, I would need to be somewhat conservative in Quarter 2. I chose to target the Mercedes and Travelers market segments as these two had several top things they wanted in a computer in common. While the market sizes were smaller, I thought if I produced the right products, I could be a market leader for both target segments.
In Quarter 2 I projected a demand of 350 units for my primary target market, the Mercedes group, and 170 units for my secondary group, the Traveler. My total forecasted demand was 500 units, and my available operating capacity was 520 units. I decided to sale my product to the Mercedes group for $3800.00/unit with a $100 rebate/unit and sold my product to the travelers for $3000.00/unit with a $100/rebate. I operated at 100% capacity for Quarter 2. I sold out of both products, under estimating my consumers. For the Mercedes group, I lost out on 158 sales and for the Travelers I lost out on 74 sales. At the end of quarter 2, I was still operating at a loss, but had significantly cut my loss from $-338,500 to $-195,018. Thanks to the common stock I sold this quarter, I still had a cash balance over a million dollars which helped me make changes for quarter 3.
In Quarter 3 I increased my projected demand to a total of 2,000 units. I projected 1,250 units for the Mercedes group and 750
MBA 9/1/2014
Part A
Cumulative Balanced Scorecard ending with Quarter 4
Income Statement showing Quarters 1-4
Balance Sheet showing Quarters 1-4
Part B
B1: Evaluate how you utilized budgets and pro-format statements to plan funding of the production capacity you needed to achieve your business goals.
At the end of the first quarter I had a net income of $-338,500.00, which was not a huge surprise given that I had not yet sold anything and was trying to get the business off the ground. I knew however, that in order for the business to be successful, I would need to be somewhat conservative in Quarter 2. I chose to target the Mercedes and Travelers market segments as these two had several top things they wanted in a computer in common. While the market sizes were smaller, I thought if I produced the right products, I could be a market leader for both target segments.
In Quarter 2 I projected a demand of 350 units for my primary target market, the Mercedes group, and 170 units for my secondary group, the Traveler. My total forecasted demand was 500 units, and my available operating capacity was 520 units. I decided to sale my product to the Mercedes group for $3800.00/unit with a $100 rebate/unit and sold my product to the travelers for $3000.00/unit with a $100/rebate. I operated at 100% capacity for Quarter 2. I sold out of both products, under estimating my consumers. For the Mercedes group, I lost out on 158 sales and for the Travelers I lost out on 74 sales. At the end of quarter 2, I was still operating at a loss, but had significantly cut my loss from $-338,500 to $-195,018. Thanks to the common stock I sold this quarter, I still had a cash balance over a million dollars which helped me make changes for quarter 3.
In Quarter 3 I increased my projected demand to a total of 2,000 units. I projected 1,250 units for the Mercedes group and 750
References: Ahmed, S. (2014, March 25). Just in Time (JIT) Manufacturing and Inventory Control System. Retrieved from Management Accounting: http://accounting4management.com/just_in_time.htm Heizer, J., & Render, B. (2010). Operations Management 10th Edition. Prentice Hall.