...of the problem, research objectives, research questions, significance, limitations, assumptions and scope 1.2 Background of the study Material purchase for food products is a function concerned with the search, selection, receipt, storage and final use of a commodity in accordance with the catering industry policy of the establishment. Business strategy literature is replete with evidence that indicate the purchasing methods of a firm have an impact on achieving a firm’s goals. The purchasing function can have an impact on the firm’s ability to achieve its chosen strategies because organizational buying is one of the forces that impact competition (Carr et al. 2000; Landeros and Monczka 1989). As hotels strive to achieve global competitiveness, effective purchasing has assumed great importance. According to Carter and Narasimhan (1996), firms need to recognize the strategic role of purchasing as well as the impacts that it exerts on organizations. The relevance of effectively managing the material resources of an organization to its competitive success has been observed by both practitioners and researchers in purchasing and supply management. As a result, purchasing has evolved in many firms from a low-skill, clerical function to a highly skilled, strategic function involved in strategic planning and managing the firm’s sourcing decisions. Recognition of purchasing’ strategic role has been established in many leading firms, where cost control and supply management has become...
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...journal of production economics ELSEVIER Int. J. Production Economics 35 (1994) 107-l 14 Trends in inventory management M.C. Bonney Department qf’ Manyfacturing Engineering and Operations Management. Universit.v qf Nottingham, UK Abstract Inventory management is one of the success stories of recent years and it is changing rapidly in response to international competition and new technology. This paper examines some of these developments. Inventory is a major investment in most companies. It strongly influences the internal flexibility of a company, e.g. by allowing production levels to change easily and by providing good delivery performance to customers. Yet inventory ties up working capital and space and it can suffer from obsolescence, deterioration and shrinkage. It can also add to administrative complexity. In recent years attention in manufacturing industry has concentrated on an ‘inventory is waste’ philosophy using JIT production, usually accompanied by visible ‘pull’ or consumer demand driven systems. The approach is also very effective in supermarket retailing and, at its best, provides very high stock turn and high profits to the company at the same time as providing good service and fresh items to customers at low cost, Current changes in inventory management consider the total logistics chain under the term logistics management, place a greater emphasis on purchasing rather than producing in-house and use more international sourcing. Changes to recording...
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...A Multi-Product Capacitated Inventory-Location Model with Risk Pooling ¹Noura A. Al Dhaheri, ²Ali Diabat ¹Department of Engineering Systems and Management, Masdar Institute, UAE 2 MASDAR Institute of Science and Technology, United Arab Emirates naldhaheri@masdar.ac.ae; adiabat@masdar.ac.ae Abstract - In this paper, a novel formulation for the capacitated warehouse inventory-location model with risk pooling for multiple products is proposed. A single plant ships different types of products to retailers via a network of warehouses. The locations and inventory policies of the warehouses are chosen so as to minimize the sum of fixed facility location, transportation, and inventory carrying costs. The warehouses retain safety stock so as to maintain appropriate service levels in the face of uncertain demand at the retailers for multiple products. Keywords - integer programming, location-inventory, multiple products, supply chain optimization I. INTRODUCTION Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption [1]. It involves decisions on facility location, technology selection, inventory management, and distribution. These decisions can be categorized into three different levels: strategic, tactical, and operational. Particularly in today’s competitive business environment, the importance of integrating these decisions so as to minimize costs and maximize customer satisfaction...
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...notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. INFORMS is collaborating with JSTOR to digitize, preserve and extend access to Operations Research. http://www.jstor.org Perishable Inventory Theory: A Review STEVEN NAHMIAS The University of Santa Clara, Santa Clara, California (ReceivedFebruary1980;acceptedJanuary1982) This paper reviews the relevant literature on the problem of determining suitable ordering policies for both fixed life perishable inventory, and inventory subject to continuous exponential decay. We consider both deterministic and stochastic demand for...
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...qualitative factors, including federal legislation and new technology, are discussed. Students can be asked to discuss other qualitative factors that could have an impact on quantitative analysis. Waiting lines and project planning can be used as examples. Teaching Suggestion 1.2: Discussing Other Quantitative Analysis Problems. Section 1.2 covers an application of the quantitative analysis approach. Students can be asked to describe other problems or areas that could benefit from quantitative analysis. Teaching Suggestion 1.3: Discussing Conflicting Viewpoints. Possible problems in the QA approach are presented in this chapter. A discussion of conflicting viewpoints within the organization can help students understand this problem. For example, how many people should staff a registration desk at a university? Students will want more staff to reduce waiting time, while university administrators will want less staff to save money. A discussion of these types of conflicting viewpoints will help students understand some of the problems of using quantitative analysis. Teaching Suggestion 1.4: Difficulty of Getting Input Data. A major problem in quantitative analysis is getting proper input data. Students can be asked to explain how they would get the information they need to determine inventory ordering or carrying costs. Role-playing with students assuming the parts of the analyst who needs inventory costs and the instructor playing the part of a veteran inventory...
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...Case Study #1 AAA Inc. 1. How could AAA have avoided the problems it experienced with Comstock? 2. What are the potential implications of the type of contract AAA used? Discuss 3. How could AAA have improved its approach to sourcing in this case? 4. What should AAA do now? Discuss Case Study #2 Better Late Than Never Bid 1. Did Lisa do the right thing? Was it ethical? Should she be commended for saving $6000? There are different aspects of the case that may be assessed as ethical or unethical relative to the orientation of the analyst. Deciding whether or not Lisa Evans was ethical requires reflective analysis of the factors that affected her decision. In a book written by Treviño and Nelson (2004), three approaches were identified in arriving at ethical judgment. These are the consequentialist theories, deontological theories and virtue ethics. Correspondingly, these theories proposes that decisions may be focused and derived from 1) the consequence of the action made, 2) duties, obligations and principles of the person involved in the case or 3) the actor’s character, motivations and intentions. In this light, the case may be evaluated on the basis of the following: 1. the proposal of the original bidders were cancelled in favor of Praire Manufactuing, Inc. and may be interpreted as disregard for values of honesty and fairness. As such, Lisa Evans may be considered unethical in this premise. 2. the Central, who was tight on budget, had a savings of $5,750.00...
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...1. Management and control (1) Management is the process of organizing resources and directing activities for the purpose of achieving organizational objectives” (2) Distinguish three elements of management process a. Objective setting Knowledge of objectives is a kind of necessary prerequisite for the design of MCS, but objectives do not have to be quantified and financial. Employees must have a basic understanding of what the organization is trying to accomplish. Otherwise no one could claim that any of the employees’ actions are purposive, and no one could ever support a claim that the organization was successful. b. Strategy formulation Strategy is defined how organizations should use their resources to meet these objectives. A well-conceived strategy guides employees in successfully pursuing their organizations’ objectives and conveys to employees what they are supposed to be doing. Strategy formulation is useful for make MCs, but is not mandatory. c. Management control I. Management control vs. strategic control 1) Strategic control -focus on external changing environment to identify the valid strategy -compete with other firms in industry based on the analysis of strengths, weakness, opportunities and limitations 2) Management control -focus on internal employees -employees should know what company expect them to do; employee really do what they need to do; employee have ability to do; solutions to the control problems. From a management control perspective...
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...Chapter 1 Management and Control Management control is a critical function in organisations. Management control failures can lead to large financial losses, reputation damage and possibly even to organizational failure. Reality shows us (in some examples illustrated on page 3-4) the importance of having good management control systems (MCS). However, adding to much control does not always lead to better control. Some MCS’s in common use often stifle initiative, creativity, and innovation. I.e. in organisations with a lot of bureaucracy a culture with a lack of responsibility can occur and due to the slow, bureaucratic processes people can find ‘creative’ ways to speed up this process. That good MCS’s are important is widely accepted, but within the field of MCS’s there are different views. An old, narrow view of a MCS is that of a ‘cybernetic’ system involving a single feedback loop. You can compare measuring performance with a thermostat; They measure the temperature, compare those measurements with the desired standard, and, if necessary, take a corrective action (turn on or off). This book, however, takes a broader view. It recognizes that may management controls in common use, such as direct supervision, employee-hiring standards and codes of conduct do not focus on measured performance. The focus instead on encouraging, enabling or, sometimes, forcing employees to act in the organization’s best interest. MCS can rather be proactive (to prevent) than reactive. The primary...
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...Homework Assignment for 4D1165 Behavioural Management Control Year 2007 Part I: The Homework Questions This, the first section, of my homework assignment contains the twenty homework questions that have been handed out to us students throughout the course, along with the answers I’ve composed in order of answering these. 1. One of the causes of management control problems is lack of direction. Why does this problem exist? Lack of direction, a fundamental element in many dysfunctional organizations, constitutes one of the primary needs for management control. Employees are likely to perform in an unsatisfactory manner unless expectations and functions are clarified. Flaws in encouragement and surveillance may loosen the strings between employee and employees, resulting in confusion. Confusion, in this context, involves having people do the wrong things; consequentially leading to decreased productivity. Leo’s Four-Plex Theatre, the first case discussed in class, illustrates the severe effects that a lack of direction may cause. As the personnel of the theatre were unaware of procedures, uninformed about regulations and seemingly, not well instructed on how to perform simple tasks, mistakes occurred. Two lines from the case text make this obvious: (1) The cash counts revealed, almost invariably, less cash than the amounts that should have been collected.[1] (2) Tickets of the wrong color or with the wrong dates in the stub boxes. Bill Reilly, the manager of Leo’s Four-Plex...
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...Total Quality Management History: The concept of quality can be seen in ancient civilization. Egyptian Pyramids and the Great Wall of China are the evidences from history. The concept of total quality was started back in 1920’s. In 1940, statistical techniques were used to check quality. In 1960 quality management became broader in meaning. In past decades quality management was limited to the production process but now quality control is concept taken as something to be applied in every line of business. Introduction: TQM is management approach to integrate all management activities or organizational function (engineering, finance, customer service, design, marketing, and production, etc.) to focus on meeting customer needs and organizational objectives by delivering high-quality products and services. TQM is a method in which management and employees work in the same line for continuous improvements in goods and services to meet customer expectation and to achieve organizational goals. The ultimate objective of TQM is to minimize defects. The Competition based on quality has grown up in recent years. Companies are focusing on quality improvement in every line of business in order to be more competitive. Companies who do not focus on quality will not survive. Companies took quality concept as a crucial to survive in the market. Features: 1-Customer Focus: The first and most important feature of TQM, on which it emphasis more is ‘Customer’. Company more focus...
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...drugstore chains, supermarkets, convenience stores, pharmacy benefit managers and other mail order prescription providers, Internet pharmacies and ambulatory care health providers. A primary component of the Company's human resources strategy to ensure high caliber leadership is the identification, recruitment, development and placement of key management and business talent. The Rite Aid Board of Directors (the "Board") and executive management team believe that a crucial aspect of executing this strategy is a comprehensive, integrated and straightforward executive compensation platform that provides competitive and differentiated levels of pay based on corporate and individual performance while reinforcing the alignment of executive interests with those of stockholders. When a company is facing issues dealing with corporate compliance, implementing a system to deal with the compliance and corporate governance issues is the best opportunity for the company. The company should develop a process to analyze alternatives and integrate the appropriate opportunity into the company's system. The company will begin by developing an internal control and corporate governance system. This process includes defining and implementing compliance steps and process. Next, the company will recommend a...
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...| Risk & Control Assessment | | Control Matrix – Narratives - Summary | | Risk & Control Assessment | | Control Matrix – Narratives - Summary | Bob, Inc November 14, 2012 Authored by: Sara Colle, Aaron Hughes, Mohammed Kahn, Paul Koller Bob, Inc November 14, 2012 Authored by: Sara Colle, Aaron Hughes, Mohammed Kahn, Paul Koller interoffice memorandum to: Jim Reinhard, ceo from: group 1 subject: risk assessment report date: 11/14/2012 cc: Mr. Reinhard, We have completed our risk assessment as requested by management. The following report will take you through our completed risk matrix, narratives about the risks and controls, and provide a summary of our findings. The areas covered include: * BCP/Disaster Recovery * Backup and Recovery * Physical Security * Logical Security * Documentation and Policies & Procedures * Change and Patch Management * Computer Operations We hope that this assessment meets your requirements. Should you have any additional questions please feel free to contact anyone of the individuals below that assisted in the preparation of the report. Best Regards, Sara Colle, Aaron Hughes, Mohammed Kahn, Paul Koller Business Continuity Planning and Disaster Recovery 1. RISKS – Loss of customers, loss of profits, loss or reputation, loss of government approval to do business Hurricane Sandy recently paralyzed New York City, the financial capital of the world. This...
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...INTRODUCTION: This case is about cultural management and organizational structure and control. It reveals the challenges faced by Western managers in telling Eastern managers the need to improve their performance. The Firm is a consulting firm with locations all over the world. It provides a range of business advisory services including taxation and accounting audits and recovery and management consulting. Mr. Alfonso Farquar was recruited by the Firm to conduct a review of the performance of some of the Firm’s Asian practices. After review of this case there are many problems related to cross-cultural management and organizational structure and control. Had the Firm researched these cultural differences Farquar could have approached the review with more knowledge and the project could have been supported. ANALYSIS: In reviewing this case numerous problems are revealed; cross-cultural management and organizational structure and control. Alfonso Farquar was recruited by Mr. David Mossman to travel to Taiwan and India to review their practices and find reasons for their slow market growth. He was advised to transfer a “best practice” approach to Business development to the Asian practices. After completing his evaluations of the Asian practices he was to report his findings to Mr. Honeysuckle. Although Farquar had never traveled overseas, never met any of these executives and was excited about the opportunity, he failed to understand the cross-cultural differences...
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...[pic] FACULTY OF BUSINESS AND ECONOMICS ACCG828 Management Control Systems Seminar 1 OBJECTIVES AND LEARNING OUTCOMES Objectives: 1. to describe the nature of management control systems as a core function of management within a management accounting context, and, 2. to provide an overview of the unit outline including the learning outcomes, learning and teaching activities, assessments and grading procedures. Upon completion of learning activities relating to Seminar 1, the student should be able to demonstrate knowledge and understanding of: 1. the nature of management control systems as part of the management process and, 2. the differences between strategic control systems and management control systems, and 3. causes of management control problems and control problem avoidance using control alternatives. This seminar contributes to enhancing students’ discipline-knowledge and skills. readings[1] 1. Merchant and Van der Stede (2012). Chapter 1 The Control Function of Management. 2. Chenhall (2003) Management Control Systems Design within its Organisational Context: findings from contingency-based research and directions for the future, Accounting, Organizations and Society, 28, pages 129-134. questions for discussion[2] 1. Read Section 3 (page 129 only) in Chenhall (2003) relating to the ‘Meaning of MCS’ a. Explain how Chenhalls’ meaning of MCS is similar and/or different to that of...
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...buyer’s, the less control the target’s management will have over achieving performance goals. To avoid this problem, it is important to choose performance goals that will not be adversely affected by integration, or to assure the target’s operating independence throughout the earnout period. * Earnouts are less likely to be effective when the entire target is to be integrated into the buyer. The more the target’s operations are integrated into the buyer’s, the less control the target’s management will have over achieving performance goals. To avoid this problem, it is important to choose performance goals that will not be adversely affected by integration, or to assure the target’s operating independence throughout the earnout period. * Earnouts are less likely to be effective when the entire target is to be integrated into the buyer. The more the target’s operations are integrated into the buyer’s, the less control the target’s management will have over achieving performance goals. To avoid this problem, it is important to choose performance goals that will not be adversely affected by integration, or to assure the target’s operating independence throughout the earnout period. * Earnouts are less likely to be effective when the entire target is to be integrated into the buyer. The more the target’s operations are integrated into the buyer’s, the less control the target’s management will have over achieving performance goals. To avoid this problem, it is important...
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