Assignment 2 Operations Decision Essay - 914 Words

Operating Decision ECO 550 Briefly describe the details of the fictitious business that you created for this assignment. Allentown Manufacturing Company is a family owned business that manufactures cardboard boxes. Currently, the company has a manpower rate of 100 workers that work 20 out of a month. The company has been able to last through some of the toughest economic times, but recently the AMC’s fixed cost is â€Å"high enough†, and their total costs are exceeding their total revenue. Assess the current environmental scan factors that are relevant to the decision making process. Determine the factors that will have the greatest impact on plant operations and management’s decision to continue or discontinue operations. Provide a†¦show more content†¦Evaluate the financial performance of the company using the information provided in the scenario. Consider all the key drivers of performance, such as company profit or loss for both the short term and long term and how each factor influences managerial decisions. Be sure to show the calculations that helped you reach your conclusions. The total revenue is the output multiplied by the number of units produced per month: TR=$32*6,000 TR= $192,000 The monthly wages for the worker are the number of workers multiplied by the daily wage multiplied by the number of days worked in each month: 100*$70*20= $140,000 The total variable cost is daily variable input multiplied by the number of days worked in a month: TVC=$2000*20 TVC= $40,000 Recommend how the company can improve its profitability to deliver more value to its stakeholders. Then, develop a brief plan to implement the recommendations. Allentown Manufacturing Company can improve its profitability in a variety of ways, such as expanding into new markets sectors, or developing new products or services. Some major changes that can take place to improve profitability can be to reduce manpower or scale back on working hours, reducing costs, and increasing productivity and efficiency. I think AMC should work with their top management to create a partnership with another company to begin manufacturing aShow MoreRelatedECO 550 Assignment 2 Operations Decision1881 Words   |  8 Pagesï » ¿ Assignment 2 Operations Decision ECO 555 Managerial Economics Strayer University August, 2014 Despite outstanding technological advancements in the industry, the quality of manufactured food products has become a major concern of the time when seen from the health and wellness perspective. In the 21st century higher income, urbanization, other demographic shifts, improved transportation, and consumer perceptions regarding quality and safety are changing the global food consumptionRead MoreEco 550687 Words   |  3 PagesWeek 6 Assignment 2 Submission Click the link above to submit your assignment. Students, please view the Submit a Clickable Rubric Assignment in the Student Center. Instructors, training on how to grade is within the Instructor Center. Assignment 2: Operations Decision Due Week 6 and worth 300 points Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates. Use the InternetRead MoreEssay Strategic Operations1447 Words   |  6 PagesOPERATIONS   STRATEGY       Instructor:   Gad   Allon       Contact:    g- ­Ã¢â‚¬ Ã¢â‚¬â€˜allon@kellogg.northwestern.edu             Class    1    Description    Framework   for   operations   strategy    Tailoring   operations   strategy    Investor/External   view   of    operations:       - Operations   Forensics    - Linking   to   Financials   (ROIC   tree)    Asset   strategy,   operational   hedging    and   risk   mgmt.    Sourcing   strategy:    Global   networks   and   offshoring    Strategic   sourcing   and   supplier    relations    ReadingRead MoreSP15 SCM 305 Syllabus1256 Words   |  6 Pagesof Business Course Syllabus – SCM 305 Business Decision Making Spring 2015, Wescoe 3140 1:00-2:15, Tuesday/Thursday Instructor: Joe Walden E-mail: joewalden@ku.edu Office: 118i Summerfield Office hours: Tuesday/Thursday: 9:00-11:30 PM; Monday/Wednesday 8:00-10:30; Or by appointment TAs: Jamie Mack Pamela Carper Deepa Anant Jill Carroll Angie Kim Course Description: This course is an introduction to decision making encountered in business and everyday lifeRead MoreInternational Human Resource Management945 Words   |  4 PagesIntroduction: Human Resource Management (HRM) involves all decisions that directly affect the people who work for the concerned organizations and corporate enterprises. Hence, HRM can be termed as a strategic and coherent approach to an organization’s most prized asset- the people working there, who individually and collectively strive towards achieving the organizational goals. In simple words, HRM means employing people, developing their capacities, utilizing, maintaining compensating theirRead MoreBus 430 Assignment 1: Lenscrafters Case Study1307 Words   |  6 PagesBUS 430 Assignment 1: LensCrafters Case Study http://homeworkfy.com/downloads/bus-430-assignment-1-lenscrafters-case-study/ BUS 430 Assignment 1: LensCrafters Case Study Assignment 1: LensCrafters Case Study Due Week 4 and worth 250 points This assignment requires student complete an analysis of the LensCrafters case from Chapter 6 of the text. Write a six to seven (6-7) page paper in which you: 1. Evaluate LensCrafters’ operations strategy and explain how the organization seeks toRead MoreSample Resume : Warehouse Design And Management1006 Words   |  5 PagesAssignment 10 ISYE695 Graduate Seminar SudheerKumar Kotla 1. Introduction Now a days, enterprises are fully concentrated on reconfiguring their supply chains to address increasing demand variability and customer satisfaction. Warehouses play a major role in the supply chain, and requirements for warehousing operations have dramatically increased. Customer needs have significantly changed with the global economy and new trends in demand (e-commerce). In order toRead MoreOperation Decisions1326 Words   |  6 PagesASSIGNMENT 1: OPERATIONS DECISION 2 The company that I am consulting is Simple Simon’s Pecan Pie Factory. Simple Simon’s has been producing pecan pies for thirty years and is an established and well-recognized competitor in the gourmet pie market. The company has two manufacturing plants in Tifton, GA and Charleston, SC, and ships its pies all over the world. Recently, I was contacted by the president of the company, Simon Fair, to make recommendations on how to turn around the company’sRead MoreLogistics: Management and Supply Chain1566 Words   |  7 PagesMinor Logistics Operations Presentatie titel MIRBSLM114OP N.J. Osentoski-Monsma A. Nielsen-de Vries Lecturers Logistics Room D2.173 osenj@hr.nl / vriad@hr.nl Rotterdam, 00 januari 2007 6-1 Corporate strategy Business strategy Operations Strategy Mission Objectives (cost, quality, flexibility, delivery) Functional strategies in marketing, finance, engineering, human resources, and information systems Strategic Decisions (process, quality system, capacity, andRead MoreSMU MBA SEM 2 SUMMER 2015 ASSIGNMENTS1436 Words   |  6 PagesGET SOLVED ASSIGNMENTS AT Rs.150 per subject or Rs.700 per semester VISIT WWW.SMUSOLVEDASSIGNMENTS.COM Or Mail us at solvemyassignments@gmail.com SMU MBA SEM 2 SUMMER 2015 ASSIGNMENTS MB 0044 - PRODUCTION AND OPERATION MANAGEMENT 1. Explain the elements or components of operations strategy. 2 Answer the following questions: a. What is location decision sequence? b. Which general factors influence the plant location decision? 3 Write short notes on: ï‚ · Pareto analysis ï‚ · Acceptance sampling ï‚ · Juran’s