Question 36
DFG Inc. has been experiencing declining sales in its consumer division. After analyzing its sales data, the company determines that racial and ethnic minorities are underrepresented as consumers of its products. DFG decides to focus on increasing its appeal to these groups. DFG's products are of excellent quality and value, and the firm believes that its sales are weak with this segment because of a lack of knowledge about DFG and its products.
Which of the following is the FIRST step that DFG should undertake?
Which of the following is the FIRST step that DFG should undertake?
Question 37
A manufacturing firm redesigns its premier product to benefit from material standardization. This will entail re-tooling its manufacturing facility. The firm conducts a cost analysis using net present value (NPV) and considers four options. Option 1 is to make no change at all. Options 2, 3, and 4 represent different re-tooling configurations. The discount rate for NPV calculation is 10% per annum, and material costs are fixed for the next 3 years. The firm follows a three-year planning cycle and wishes to apply NPV over that time period to the calculations:
Option 1Option 2Option 3Option 4
Re-tooling Costs$0$500,000$800,000$950,000
Annual Material Costs$1,100,000$900,000$800,000$750,000
NPV = £ r.i (l*r/
What is the 3-year NPV of the best option'
Option 1Option 2Option 3Option 4
Re-tooling Costs$0$500,000$800,000$950,000
Annual Material Costs$1,100,000$900,000$800,000$750,000
NPV = £ r.i (l*r/
What is the 3-year NPV of the best option'
Question 38
A manufacturing firm's facility operates a level production strategy. The initial demand plan is as follows:
MonthJanFebMarAprMayJunJulAug
Unit Sales12,00026,00026,00021,00020,00020,00015,00020,000
Production20,00020,00020,00020,00020,00020,00020,00020,000
The supply management department learns that one of its retailers is planning a promotional event on August
1st that it expects will require an additional 19,000 units. There are 5,000 units in stock for the beginning of January, and maximum inventory holding is 15,000 units.
How many units per month should production increase in order to meet the requirements of its retailer and minimize overall inventory levels?
MonthJanFebMarAprMayJunJulAug
Unit Sales12,00026,00026,00021,00020,00020,00015,00020,000
Production20,00020,00020,00020,00020,00020,00020,00020,000
The supply management department learns that one of its retailers is planning a promotional event on August
1st that it expects will require an additional 19,000 units. There are 5,000 units in stock for the beginning of January, and maximum inventory holding is 15,000 units.
How many units per month should production increase in order to meet the requirements of its retailer and minimize overall inventory levels?
Question 39
A company finds that delays and cost overruns are creating problems in its service contracts. To improve this situation, which of the following should the firm do FIRST?
Question 40
A supply manager is analyzing potential costs associated with the raw materials needed for a new product launch. Tooling costs are known, but the range of forecasts for future sales-and therefore demand for materials-varies widely. Given these circumstances, the supply manager should consider using which of the following?