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You are the plant manager for Harlow Romance Novels, a distribution company for romance novels from a major publisher. You have both an internet site (40 percent) and a traditional brick-and-mortar business with phone sales representing 40 percent of your business. A declining 20 percent of the business comes from mail-in orders. All three types of orders are processed in the plant located in Amherst, NY. Twenty-five percent of your production employees are temps hired from Robert Raft Agency, a specialist in temporary employees. The major production jobs and their wages are listed below.
Drivers get books stored on pallets from their warehouse location and move them to location for packing. Packers take books from boxes as needed to complete orders. Expediters fill special rush orders and get single copies of books needed by packers to complete orders. Inspectors check packing slips against actual hard copies of books to make sure orders are complete and accurate. Employees begin as packers and move up the career path through expediter and inspector to forklift operator. Packer is the physically most demanding job, with expediter having the greatest pressure (usually they are filling orders with strict time deadlines). Although only 25 percent of your production staff are temps, they represent 38 percent of the packers. By contract, these workers make 20 percent less wages than those posted above, and they are aware of differential between them and corporate workers. In recent months you have heard grumbling about the lack of fairness in this wage differential. After all, the temps say, they're doing exactly the same job for less money. Moreover, they argue, their jobs are far less secure. And this is true: if layoffs occur, they're in the temp ranks.You're starting to see signs of sabotage-mostly books with pages ripped out-and this isn't caught by the inspectors. You think it might be temps acting out their anger, but it could be non-temps seeking to cause friction. Temps also have a 6 percent higher turnover rate across all job titles. You're reluctant to stop hiring temps all together because you save about 8 percent in total labor costs. What would you recommend doing?
They have their product priced at $30. Is this optimal and why or why not and what would you recommend their optimal price to be?
Analyse the months and times of peak and off-peak energy use. Using some of the DSM options and techniques discussed in this week, provide a proposal for the management of peak and off-peak energy consumption for existing rooms in a 1980s concrete..
Evaluate the proposal. Be sure to include in your answer the price elasticity assumed by the consultant, as well as the published elasticity estimate.
A company is planning two business projects. Project A will return a loss of $45 if conditions are poor; a profit of $35 if conditions are good; and a profit of $155 if conditions are excellent.
Would the reward system vary among retailers, manufacturers, distributors, financial organizations? What other characteristics should good performance incentives have?
A company has a technology described through the production function, Calculate the quantity of labor demanded by the firm and cost minimizing K/L ratio.
Given the Keynesian explanation for the persistence of high levels of unemployment after the recessions of the early 1980s and early 1990s, what policies would you advocate to reduce unemployment in the years following a recession?
What is the daily quantity they should supply? At what price? What is the profit in this case? What is the price elasticity of demand at this price/quantity combination? Explain.
Orange Corporation is evaluating its financing needs for the coming year. The company has been in business for only three years, and the company's chief financial officer
Assuming that Geriatrics wants to profit-maximize, what is the optimal external market price? What is the optimal internal transfer price?
Following are the Production Function: Q = 72X + 15X2 - X3, where Q = Output and X = Input The Marginal Product and Average Product when X = 6 are;
Suppose you have been appointed as Global Manager of a company that has 2-plants, one in the US and one in Mexico. Suppose, you cannot change the size of plants or amount of capital equipment.
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