Percentage improvement is needed in supply chain strategy

Assignment Help Operation Management
Reference no: EM131146411

Han Lee Furniture, Inc, spends 45% of its sales dollars in the supply chain and finds its current profit of $30,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to $35,000 so he can obtain the banks approval for the loan.

Current Situation Sales $100,000

Cost of material $45,000 (45%)

Production costs $20,000 (20%)

Fixed cost $5,000 (5%)

Profit $30,000 (30%)

a) What percentage improvement is needed in the supply chain strategy for profit to improve to $35,000? What is the cost of material with a $35,000 profit? A decrease of __% in material(supply-chain) costs is required to yield a profit of $35,000, for a new material cost of $ __ . (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole number.

b) What percentage improvement is needed in the sales strategy for profit to improve to $35,000? What must sales be for profit to improve to $35,000? An increase of __% in sales is required to yield a profit of $35,000, for a new level of sales of $___. (Enter your response for the percentage increase to one decimal place and enter your response for the new sales as a whole number.)

Reference no: EM131146411

Based on several multiple predictor methods

Develop assessment scores based on several multiple predictor methods. This entails developing distinct scores for each applicant based on clinical prediction, unit weighting,

Developing sales and marketing strategies

Developing Sales and Marketing Strategies at the Target Franchisee and Target Consumer Levels. On the first page of the chapter, the authors discuss how many franchisees still

Create problems for inventory management

To be competitive, many fast-food chains began to expand their menus to include a wider range of foods. Although contributing to competitiveness, this has added to the complex

What are the total monthly expenses for telephone cards

(RentAPhone) RentAPhone is a new service company that provides European mobile phones to American visitors to Europe. The company currently has 80 phones available at Charles

One of the metrics used in non-traditional media

One of the metrics used in non-traditional media (internet, social media, etc.) is engagement. Explain what is meant by engagement and why it is important to the marketer. Stu

Persistent problem with starvation in some parts

Given the persistent problem with starvation in some parts of the world, and the anticipated population growth in developing nations, do we need genetically modified foods? Is

How are assertiveness and cooperativeness related to each

In the context of direct conflict management approaches, what are assertiveness and cooperativeness? How are assertiveness and cooperativeness related to each of the five ba

Contingency planning synopsis

Yale New Haven Center for Emergency Preparedness and Disaster Response: Contingency Planning Synopsis. The Yale New Haven Center for Emergency Preparedness and Disaster Respon

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd