What are knowledge management solutions, and how can they support a firm’s supply chain integration efforts? Give some examples.
> KTM reports costs in financial statements. If plantwide overhead rates are allowed for reporting costs to external users, why might a company choose to use a more complicated and more expensive method for assigning overhead costs to products?
> What are the four activity levels associated with activity-based costing? Define each.
> In what way are departmental overhead rates similar to a single plantwide overhead rate? How are they different?
> Explain why a single plantwide overhead rate can distort the cost of a particular product.
> What are the advantages of using a single plantwide overhead rate?
> King Company produces variations of its product, a megatron, in response to custom orders from its customers. On June 1, the company had no inventories of goods in process or finished goods but held the following raw materials. Material M . . . . . . .
> Why are direct labor hours and machine hours commonly used as the bases for overhead allocation?
> New Belgium Brewing Company has expanded its product offerings to include many varieties of specialty and seasonal brews. Kim Jordan, CEO of New Belgium Brewing Company, realizes that financial success depends on cost control as well as revenue generatio
> Accounting professionals that work for private companies often obtain the Certified Management Accountant (CMA) designation to indicate their proficiency in several business areas in addition to managerial accounting. The CMA examination is administered
> The chief executive officer (CEO) of your company recently returned from a luncheon meeting where activity-based costing was presented and discussed. Though her background is not in accounting, she has worked for the company for 15 years and is thoroughl
> In conducting interviews and observing factory operations to implement an activity-based costing system, you determine that several activities are unnecessary or redundant. For example, warehouse personnel were inspecting purchased components as they wer
> Polaris and Arctic Cat are competitors in the sales of recreational and off-road vehicles. Compare these companies’ income statements and answer the following. Required 1. Which company has a higher ratio of costs, defined as cost of goods sold plus tot
> Refer to financial statements of Polaris (Polaris.com) and Arctic Cat (arcticcat.com) to answer the following. Required 1. Identify at least two activities at Polaris and at Arctic Cat that cause costs to be incurred. Do you believe these companies shou
> Visit the Websites and review the financial statements for KTM (KTM.com) and Piaggio (piaggio.com). Each of these companies sells street vehicles like motorcycles or scooters in global markets. Required 1. For KTM in 2011, what are the largest three geo
> The computer workstation furniture manufacturing that Adria Lopez started is progressing well. At this point, Adria is using a job order costing system to account for the production costs of this product line. Adria has heard about process costing and is
> The following refers to units processed by an ice cream maker in July. Compute the total equivalent units of production with respect to labor for July using the weighted-average inventory method. Gallons of Percent of Product Labor Added Beginning go
> KTM and Piaggio are competitors in the global marketplace. KTM’s and Piaggio’s financial statements are in Appendix A. Required 1. Determine the change in KTM’s and Piaggio’s inventories for the most recent year reported. Then identify the impact on net
> Adria Lopez expects sales of her line of computer workstation furniture to equal 300 workstations (at a sales price of $3,000) for 2014. The workstations’ manufacturing costs include the following. Direct materials . . . . . . . . . . . $800 per unit Di
> The Soft Toys Company has collected information on fixed and variable costs for four potential plant locations. a. Plot the total cost curves for the four plant locations on a single graph. b. Compute the range of demand for which each location has a c
> Discuss the use of performance standards and performance variances. Do schools and universities use them? How can they be damaging to the organization?
> List some of the traditional performance measures and describe their value in today’s competitive climate.
> What risk do managers take when they view their firm’s performance solely in financial terms?
> In building supply chain competencies, what are the tradeoffs that must be considered?
> How should performance measures be viewed from a supply chain perspective?
> What do customers have to do with good performance measures?
> Define quality of life. Why is quality of life an important factor in facility location? Is the set of quality of life factors used by the Chamber of Commerce in Jacksonville, Florida a good one? Please explain.
> What is the difference between a total productivity measure and a single factor productivity measure? Provide an example.
> When customers purchase a service, they are actually getting a bundle of service attributes. List and describe these attributes using a car rental agency, a convenience store and a radio station.
> Using the formulas provided for utilization, calculate the utilization of your classroom.
> What are the advantages and disadvantages of using labor utilization as a performance measure? Do these same arguments apply to machine utilization?
> Cindy Jo’s Hair Salon is concerned about their rising costs of supplies, energy, and labor, so they are considering investing in better equipment, which hopefully will reduce the time required to perform most hair styles as well as resu
> What is the WTO and what is its role in world trade?
> What are the latest extensions of the SCOR model, and why are they used?
> Describe what happens as a firm progresses through the standardized levels of process detail in the SCOR model.
> How is a scorecard different from a dashboard?
> What are the steps in developing a balanced scorecard?
> Why should supply chains begin using green performance measures? Provide some examples of green supply chain performance measures. How would these differ from green performance measures for one firm?
> Why should supply chains begin using green performance measures? Provide some examples of green supply chain performance measures.
> How should a firm extend their performance measures to include other supply chain members?
> What does process integration mean, and why is it difficult to achieve?
> List some steps firms can take to reduce supply chain risk and increase security.
> What is the difference between supply chain risk management and supply chain security management? Which do you think is most important?
> Discuss the major regional trade agreements in Asia, Africa, Europe, Latin America, and North America.
> What is everyday low pricing, and how does it impact the bullwhip effect?
> What is the difference between supply chain management and supply chain process integration?
> What is cloud-based supply chain management and how might it impact process integration?
> Define the bullwhip effect and describe how it impacts supply chain integration, or how integration impacts the bullwhip effect.
> Why is visibility so important when integrating processes?
> Why is lack of trust an obstacle to supply chain management? How can we overcome this obstacle?
> Why is an ERP system important for both internal and external process integration? What other IT considerations are there?
> What makes a supplier or customer a key or primary supply chain partner? Describe why it is important to begin supply chain management efforts with only these companies.
> For the office layout shown below and the accompanying trip and distance matrices, determine the total distance traveled per day. Find another layout that results in a lower total distance traveled per day. Interdepartmental Trips per Day Manage
> The Bruhaha Brewery is planning to expand internationally. The company has identified six critical location factors and their relative weights. The relative performance scores for each of the three potential sites are shown in the following table. Which
> For the previous month, the Ellram Lounge served 1,500 customers with very few complaints. Their labor cost was $3,000; material cost was $800; energy cost was $200; and building lease cost was $1,500. They were open 26 days during the month, and the lou
> How would Stella’s queuing system operating characteristics change for the problem below, if she added another cashier and increased her service rate to twenty customers per hour? Stella can handle about 10 customers per hour at her one-person comic book
> Given an average service rate of twelve customers per hour, what is the probability the business can handle all the customers when the average arrival rate is ten customers per hour? Use the Poisson distribution to calculate the probabilities for various
> Can recovery from a poor service quality incident be a good thing? Explain.
> Describe the five dimensions of service quality for a dentist’s office, how performance in these dimensions might be measured, and how recoveries might be handled for failures in each of the service quality dimensions.
> How is service quality related to customer service and satisfaction?
> Describe and give examples of a pure Internet distribution strategy and a mixed Internet distribution strategy. Find your examples on the Internet.
> Describe the important issues in the international expansion of services.
> What is a microfranchise? Would these be good for a developing country? For the U.S.?
> For the office layout shown in question number 2, determine the closeness desirability rating using the rating table below. Treat the hallway as if it doesn’t exist (ie, the Production and Accounting Departments touch each other). Can y
> What are business clusters? Provide several examples of business clusters in a variety of countries. What are the advantages of clustering?
> How do supply chain management activities differ between services and manufacturing companies? In what ways are these activities alike?
> Explain and give examples of Maister’s 1st and 2nd Laws of Service.
> Discuss the principle design objectives for service layouts.
> What are some things service firms can do to monitor customer satisfaction?
> What is a virtual queue? When might one be used?
> Provide some examples of front-of-the-house and back-of-the-house service operations.
> Discuss the primary issues in the management of global services.
> Define Baumol’s Disease and the Wal-Mart effect, and how they affect service-oriented economies like the U.S.
> How can firms make use of excess capacity?
> Describe some demand management techniques that are used when demand exceeds capacity, and when capacity exceeds demand.
> Why is demand management important for effective supply chain management?
> Can customers be used to provide extra service capacity? Explain.
> What are some alternatives to hiring and laying-off workers to vary service capacity as demand varies?
> Describe how you would use a level and a chase demand capacity utilization strategy.
> Give an example of a single-factor productivity measure and a multiple-factor productivity measure. Using the formula for productivity, describe all the ways that firms can increase productivity. Which of these ways might be considered risky?
> Define service capacity and provide three examples of service capacity not listed in the text.
> What is sustainable development and why is this policy important to a country and the world at large?
> Discuss the six strategic roles of a foreign facility.
> What are the challenges of doing business in China?
> Why are service locations so important?
> What is a right-to-work state? What are the advantages or disadvantages of doing business in a right-to-work state?
> What is the impact of facility decisions on a supply chain?
> Compute estimated profit in 1 year if XYZ buys paylater puts as follows (the net premium may not be exactly zero): a. Sell one 1.025-strike put and buy two 0.975-strike puts. b. Sell two 1.034-strike puts and buy three 1.00-strike puts. Draw a graph of p
> Suppose that price and quantity are positively correlated as in this table: There is a 50% chance of either price. The futures price is $2.50. Demonstrate the effect of hedging if we do the following: a. Short the expected quantity. b. Short the minimum
> Repeat the previous problem, assuming that the dividend yield is 1.5%. Previous Problem Suppose you are a market-maker in S&R index forward contracts. The S&R index spot price is 1100, the risk-free rate is 5%, and the dividend yield on the index is 0.
> Suppose the premium on a 6-month S&R call is $109.20 and the premium on a put with the same strike price is $60.18. What is the strike price?
> The firm has a single outstanding debt issue with a promised maturity payment of $120 in 5 years. What is the probability of bankruptcy? What is the credit spread?
> Given a continuously compounded risk-free rate of 3% annually, at what lease rate will forward prices equal the current commodity price? (Recall the copper example in Section 6.3.) If the lease rate were 3.5%, would there be contango or backwardation?
> Suppose you buy theS&Rindex for $1000 and buy a 950-strike put. Construct payoff and profit diagrams for this position. Verify that you obtain the same payoff and profit diagram by investing $931.37 in zero-coupon bonds and buying a 950-strike call.
> The current price of oil is $32.00 per barrel. Forward prices for 3, 6, 9, and 12 months are $31.37, $30.75, $30.14, and $29.54. Assuming a 2% continuously compounded annual risk-free rate, what is the annualized lease rate for each maturity? Is this an
> Suppose that you short the S&R index for $1000 and sell a 1000-strike put. Construct a table mimicking Table 3.1 that summarizes the payoff and profit of this position. Verify that your table matches Figure 3.5. For the following problems assume th
> Repeat the previous problem, only use Monte Carlo simulation. Repeat the previous problem Using the delta-approximation method and assuming a $10m investment in stock A, compute the 95% and 99% 1-, 10-, and 20-day VaRs for a position consisting of stock
> Use Itˆo’s Lemma to evaluate d[ln(S)]. For the following four problems, use Itˆo’s Lemma to determine the process followed by the specified equation, assuming that S(t) follows (a) arithmetic Brow
> Suppose that you buy the S&R index for $1000, buy a 1000-strike put, and borrow $980.39. Perform a payoff and profit calculation mimicking Table 3.1. Graph the resulting payoff and profit diagrams for the combined position. TABLE 3.1 Payoff and
> Suppose the firm issues a single zero-coupon bond. a. Suppose the maturity value of the bond is $80. Compute the yield and default probability for times to maturity of 1, 2, 3, 4, 5, 10, and 20 years. b. Repeat part (a), only supposing the maturity value
> Using the same information as the previous question, draw payoff and profit diagrams for a short position in the stock. Verify that profit is 0 at a price in 1 year of $55.
