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 emergence of other competitors who can supply these chairs, and the value of the U.S. dollar, which is an important factor on whether or not it is cheaper to import the chairs. Without the buyer, we are unlikely to sell enough chairs to maintain the operation. However, we have stood strong in this challenging environment for a few years, and it is important to consider that we have the potential to grow the business as well.
3. There are several aspects to the company's financial performance. The income statement can tell us if the company is making a profit or not:
Revenue
192000
DL
140000
Variables
40000
Net Income
12000
The company earned $12,000 last month. Marginal revenue is $32, and marginal cost is $30. The average total cost is $30 at this point.
Based on the profits, the company should continue. However, there are some concerns about the long-term viability of the company. In 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.
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
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
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
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.
1073). Brocklesby advocates 'Soft OR' approaches such as Multi-Criteria Decision Analysis, Data Envelope Analysis, Cognitive Mapping, Soft Systems Methodology and the Theory of Constraints to allow for "conflicting objectives and multiple subjectivities" (Brocklesby 2007, p.1073). For example, the Theory of Constraints (TOC) deploys the TOC Thinking Processes to map social, material, and personal consequences of collective decisions. A TOC Current Reality Tree, searches for root causes of problems. A representation of
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