needed to break even. Based on the existing sales mix and production units given (Valves 7‚500‚ Pumps 12‚500 and Flow Controllers 4‚000)‚ the break-even prices in dollars (BEP$) are shown as below: Therefore‚ based on the data above‚ if the company cut its prices to just cover short-term variable costs‚ the company’s total sales would fall by 4.05%‚ from $2‚152‚500 to $2‚065‚387‚ which would also result in 4.05% drop in the selling price of each unit of products‚ total variable costs at $699
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CHAPTER 3 Supply Chain Drivers and Metrics LEARNING OBJECTIVES After reading this chapter‚ you will be able to: I. Identify the major drivers of supply chain performance. 2. Discuss the role of each driver in creating strategic fit between the supply chain strategy and the competitive strategy. 3. Detine the key metrics that track the performance of the supply chain in terms of each driver. In this chapter‚ we introduce the three logistical drivers-facilities‚ inventory‚ and transportation-and
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Brief analysis report of Rio Tinto Rio Tinto is a British multinational metals and mining corporation with headquarters in London and a management office in Melbourne‚ Australia. The corporation was founded in 1873 and it ranked at the number 263 in Global 500 of largest worldwide companies in 2008. (Wikipedia‚ 2012) Rio Tinto’s net earning has decreased in the year 2011 mainly because of the financial crisis and global economic uncertainty (Annual report of Rio Tinto‚ 2011). Meanwhile‚ the leadership
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European‚ and international automobile operations. Ford 2000 also called for a complete reengineering of several key company processes including Order to Delivery (OTD) and Ford Production System (FPS). One of the primary strategic goals of Ford 2000 was to decrease OTD from 60+ days to less than 15. To help overcome information constraints in Ford’s new global approach‚ they launched a company-wide Intranet in mid-1996. In addition‚ Ford further expanded upon that system to include business-to-business
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Barilla Case Study 1. What are the reasons for the increase in variability in Barilla’s supply chain? The supply chain of Barilla is highly variable because of a number of reasons. One of the major reasons is the fact that the distribution network for the firm is complicated because of the involvement of middlemen who make the supply chain longer and complex. In order to have adequate supplies‚ the firm depends on forecasting models‚ which are improper‚ rather than depending on the distributors
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In this Case Judy Allison is coming over to close a sale with Bill Taylor. Judy is a salesperson for cellular phones. She called the company first and dropped of a sample for the executives to try them out. The executives really liked them so they decided to order four cellular phones. Judy Allison‚ the salesperson promises to drop of the ordered phones tomorrow and the deal is almost closed. After talking about the great benefits of the cellular phones suddenly the conversation is going in a completely
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1. When analyzing the buyer decision process of a traditional Porsche customer I found that they primarily produce sports cars and mainly appeal to a selective market segment of economically stable and target the high class. The company purchases reflect themselves and personal achievement showing the customer why they should buy cars like Porsche. The customers purchase the product because it is a fun car to drive and enjoy and because of the brand name. 2. The traditional Porsche customer decision
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We decided to group all the retail companies together by understanding that a retail company will have a relatively low collection period and then break them down further based upon our knowledge and research of industry averages. We believe that the Department store is represented by column K. The first aspect that caught our attention was the fact that there was a very large amount of inventory‚ which makes sense because a department store will need to have a continuous flow of inventory in
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DEERE COST MANAGEMENT 1. COMPANY INFORMATION 2. STATEMENT OF THE PROBLEM Jim Elsey‚ cost management specialist at Deere & Company in Moline‚ Illinois has been reached by Glen Lowery‚ sales manager in the Agriculture Products Division. Glen is concerned that the sales margin for the Conveyor System has decreased the last 3 years. Glen wants Jim look at the costs involved the gatherer chain‚ which is purchased from a single supplier (Saunders Manufacturing)
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Ariana Grande licking doughnuts at a shop in Lake Elsinore‚ the department announced on Wednesday. In the video uploaded by TMZ on Tuesday‚ the 22-year-old superstar is seen accompanied by a male friend and licking doughnuts displayed on the counter of Wolfee Donuts. In the wake of the incident‚ police have teamed up with the Riverside County public health officials to investigate the video‚ according to Fox News. Mayra Solis was the cashier on duty at the local doughnut shop when Grande entered
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