Evaluate teleconferencing, Supply Chain Management

The business section of the International Herald Tribune carried a story with the headline "Hark! The Herald Angels Sing of Teleconference," (Peter H. Lewis, New York Times Service). The story described how video teleconferencing - two way telecasts is gaining popularity with businesses. Indeed, it was reported that some firms are regarding teleconferencing as an effective substitute for in-person conferences. And the cost has been declining to the point where it is comparable to "having four or five executives jump on a plane to go to a common point."

Your boss asked you to evaluate teleconferencing as an alternative to the six global conferences the firm is currently holding each year. In his instruction to you, he said that "it looks like we might be able to realize substantial savings without reducing the impact of the conference."

Set up a detailed plan for solving this optimization problem. In your plan, clearly indicate if this problem be treated as a constrained or unconstrained optimization problem? Why? Using the marginal analysis approach how would you develop and execute your plan. Please indicate the all the factors that you would incorporate to identify the direct and indirect benefits and costs, and eventually the optimal net benefits.

Posted Date: 3/2/2013 5:10:19 AM | Location : United States

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