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A manufacturing company of textiles has two different production facilities, both producing variations of a similar product. Both are located in the same state. When the VP of Finance was reviewing cost figures for both locations, it was noted that the average cost to operate at one location (location A) is much higher than the other (location B), although each produces variations of the same product based on customer orders and dissemination of such orders from a central ordering point (human operator) with no prioritization scheme in place. Now and in further review, the VP of Finance noted that at one location (location B), the marginal costs to produce are lower than at the other, even though the fixed costs are higher. Furthermore, closing one location over the other may actually create issues in terms of filling orders. Finally, and at the same time, the company is considering purchasing another location out of state that will convert raw materials such as cotton into basic materials which locations A and B will transform into finished products based on orders received. You are advising the VP of Finance on this matter. Should the location with the higher cost be closed or should operations be expanded? Finally, picking up the out-of-state location is a form of vertical integration. What are some of the reasons to do this, given the questionable operating costs of locations A versus B? Please develop your reasoning and explain if you would choose to close location A or expand operations through a vertical integration with the third location to supply locations A and B.
Do you feel the project has any merit for further investigation? What is your political assessment of building a pipeline that will traverse five states?
Find the corresponding annual setup cost, annual holding cost and total variable inventory cost per year.
An ice cream store has a single window for serving customers. Customers arrive at the rate of 10 per hour (Poisson distributed). The store can serve 15 customers per hour (Poisson distributed). What is the average number of customers waiting in line,..
Consider what new challenges come from producing in foreign locations. How should wage rates be determined? What about other parts of a compensation plan such as vacation days and health care packages? Should companies participate in labor unions?
Malik’s first day as a new manager ended up more challenging than he expected. While having to adjust to a new workplace and new colleagues, he had an interesting management challenge thrown at him. What might be the factors that are causing this emp..
Describe the main stages of technology development programs. What is Analytics Enterprise? Why is it relevant to Business Analytics?
Option A has an expected value of $2,000, a minimum payoff of -$4,000, and a maximum payoff of $18,000. Option B has an expected value of $2,200, a minimum payoff of -$1,000, and a maximum payoff of $6,000. Option C has an expected value of $1,900, a..
In today’s business world in the United States, four alternate forms of business organizations tend to dominate our commercial activities: Sole Proprietorship (DBA); General Partnerships; Public Corporation (Inc.); and Limited Liability Company (LLC)..
Describe how a company would implement each of these components of technology. Explain the purpose and how it would be utilized within the company.
Discuss the ethical issues in the use of this LinkedIn service by employers?
PRINCIPLES OF VERBAL COMMUNICATION. Why did you choose this theory or concept? What is the theory or concept important to you?
Write the Access Control Policy section of the Information Security Policy for the bank. Include the following: User enrolment, Identification, Authentication, Privileged and special account access Remote access
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