by increasing revenue and decreasing cost. However, companies may employ different 2 strategies in order to achieve this goal. Some of them focus on customer satisfaction and quick delivery, while others may be more concerned about minimizing inventory holding costs. d. In general, different parts of the supply chain have objectives that are not aligned with each other. 1. Purchasing: Stable order quantities, ßexible delivery lead times and little variation in mix. 2. Manufacturing: Long
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to find a way to take costs out of the distribution channel with out compromising service. The idea of implementing a Just-in-Time Distribution (JITD) model was brought up in order to reduce their own inventory levels and all the others distribution channels involved. By that moment, inventories were necessary as they were trying to satisfy distributors/retailers’ demand which was very fluctuating and they could not anticipate it causing problems in their manufacturing process. This idea had opposition
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Profit Planning (Budgeting) Learning Objectives 1. 2. 3. 4. 5. 6. 7. 8. 9. understand the budgeting process prepare a sales budget and a schedule of expected cash receipts prepare a production budget prepare a direct materials budget, including a schedule of expected cash disbursements for purchases prepare a direct labor budget prepare a manufacturing overhead budget prepare a selling and administrative expense budget prepare a cash budget prepare a budgeted income statement 10. prepare a budgeted
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MOS 3330: Solutions for Lecture Note Numerical Examples Version: Fall 2012 INVENTORY MANAGEMENT 1a) TC = CO((# orders) + CH((avg. inventory) = 500(12 + 0.4((36000/12)(1/2) = 6000 + 600 = $6600 1b) TC = 500((36000/6000) + 0.4((6000/2) = 3000 + 1200 = $4200 1c) Q* = [2DCO/CH]½ = [2(36000)(500)/0.4]½ = 9486.83 TC = CO(D/Q) + CH(Q/2) = 500((36000/9486.83) + 0.4((9486.83/2) = 1897.37 + 1897.37 = $3794.74 2) Order Size Discount
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The important of supply chain management In the traditional view, the supply chain includes manufacturers, wholesaler’s retailers. For example, the manufacturer could sell directly to an individual for household usage, sell to a retailer for sale to the individual or sell to wholesalers for sale to the retailer, who then sells to the individual. Thus, supply chains consist of all the institutions and all the marketing activities such as storage, financing, purchasing and transportation that are
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complement and enhance warehousing, transportation, and logistics offerings. Using value-added logistics services enables companies to lower inventory footprints of finished goods by delaying the labelling and final assembly of products until customer orders are received. This is a cost effective supply chain strategy that gives companies more flexibility over their inventory. WAREHOUSE The warehouse has loading docks to load and unload goods from trucks. Warehouses are designed for the loading and unloading
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Establishing A Business: Production * Description of the Business * Type of Business Partnership * Nature of Business * D’Alana Corrdae * Objectives/Mission statement Executive Summary * Overview * De Kliek Style Studio is an upscale women's clothing boutique that will open in July this year. De Kliek, which means "the clique" or "circle of friends" in Dutch, defines the boutique and its essence of inclusion. De Kliek's clothing selections and exclusive personal style
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characteristics such as retinal images to provide identification. 5) _______ 6) Enterprise systems use a client/server architecture and have not yet been redesigned to take advantage of the Web. 6) _______ 7) Low inventory acts a buffer for the lack of flexibility in the supply chain. 7) _______ 8) Total supply chain costs represent the majority of operating expenses for many businesses and in some industries approach 75 percent of the total operating
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Materials (DM) + Direct Labor (DL) + Manufacturing Overhead (MO) Manufacturing Costs (MC)/Product Costs (PC)/ Inventoriable Costs (IC) DM + DL Prime Cost DL + MO Conversion Cost Basic Equation for Inventory Accounts Beginning Bal + Additions to Inventory = Ending Bal + W/drawals from Inventory Cost of Goods Sold (COGS) in a Merchandising Co. Beg. Inv + Purchases = Ending I + COGS COGS = Beg. Inv + Purchases – Ending Inv Cost of Goods Sold (COGS) in a Mftg. Co. Beg. FG Inv + COGM = Ending
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divided by sales. If these ratios are large the company has the ability to liquidate and satisfy is obligations. Activity ratios like inventory turnover, accounts receivable, turnover, total asset turnover, and fixed asset turnover measures how assets are used. Inventory turnover is how inventory is created and used which is the ratio of cost of goods sold to inventory. Accounts receivable turnover indicates how often in a period credit sales have been collected on. Total asset turnover ratio is the
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