List at least five challenges to maintaining global competitiveness.

Based on the case study from Pacific Systems Corporation, Inc. (PSC) – Personal Computer MarketWhat is your recommended sourcing

yulyashka [42]

Answer:

My recommended sourcing strategy is that Pacific Systems should single source their DVD drives and they should establish a good relationship with their suppliers. Having a single supplier and having a long term contract with that supplier will be advantageous for the company. Further it should implement a just in time inventory management practice.

A quantitative analysis is provided in the attached file

To reduce any risk associated with my sourcing decision I will have to trust my supplier and try and create synergies together by building a symbiotic relationship with the supplier. Cross functional risk planning will also be useful here.

2. Not all sourcing decisions require the same quantum of commitments in terms of time and efforts. This is because a variety of suppliers are available both locally as well as globally. As a company analysis will have to be done with regards to suppliers if they are financially competent to supply, on a consistent basis, high quality materials. The type of sourcing that does not justify the level of effort and analysis are fasteners for the computers and poly bags that are used to protect products from dust.

3. The issue of supplier capacity is important in this case. This is because the market is booming and demand is about to rapidly increase due to a revival of the economy. The company should look out for a supplier that has the ability, wherewithal and capacity to cater to spikes in demands besides being able to take on new projects. A supplier should be stable enough to absorb increase in demand and having such suppliers will ensure that the company does not lose out on potential customers.

4.

Advantages of single sourcing – It helps in optimizing the company’s supply chain. Further it helps the company by lowering its production costs and provides and creates a better and incremental value for the shareholders.

Disadvantages of single sourcing – It can be detrimental to the company in the long run as greater power is provided to the suppliers. Secondly failure of a supplier may cause a total shutdown for the company.

Advantages of multiple sourcing – As competition increases among the suppliers it drives down prices in the long run. Secondly failure of a single supplier will no longer disrupt the company’s operations.

Disadvantages of multiple sourcing – Managing different suppliers can become complex as each of the suppliers will have to be managed and monitored. Secondly as there are many suppliers they will not eb able to leverage the advantages of economies of scale.

Explanation:

6 0

4 years ago

ABC Company’s budgeted sales for June, July, and August are 15,600, 19,600, and 17,600 units, respectively. ABC requires 30% of

sleet_krkn [62]

Answer:

Raw material purchase budget for June 64,650 pounds

Explanation:

Production budget for June = Sales budget + closing inventory- + Opening inventory

Closing inventory of products for June

-30%× July budgeted sales= 30% ×19,600

=5,880

July production production budget

t= 19600 + (30%× 17,600)- 5,880

=19600 + 5280 - 5880 =19,000 units

July usage budget for raw material

Usage budget = production budget × standard material per unit

= 19,000× 3 pounds =57,000 pounds

Production budget for June = 15600 + 5,880 -4,680

= 16,800 units

Material usage budget = 16,800×3 pounds = 50400 pounds

Material purchase = Usage budget + closing inventory of material - opening inventory

= 50,400 + (25%× 57000) - 0 =

=50,400 + 14250 =64,650 pounds

4 0

4 years ago

The following information is available for Department X for the month of August: Work in process, August 1: Materials $ 8,480 Co

Triss [41]

Answer:

a) $8.00

Explanation:

Beginning work in progress, conversion $15,900

Conversion costs incurred during period $26,500

Total costs to account for $42,400

Cost per equivalent unit for conversion = $42,400/5,300

= $8.00

Therefore, Department X's cost per equivalent unit for conversion costs using the weighted average method would be $8.00

5 0

3 years ago

Slow 'n Steady, Inc., has a stock price of , will pay a dividend next year of , and has expected dividend growth of per year

wlad13 [49]

Answer:

Slow 'and Steady cost of equity capital is 11%.

Explanation:

Note: The question is not complete as the important data are committed. The full question is therefore provided before answering the question as follows:

Slow n' steady Inc, has a stock price of $30, will pay a dividend next year of $3, and has expected dividend growth of 1% per year. what is your estimate of slow n steady's cost of equity capital?

The explanation to the answer is now given as follows:

The cost of equity can be calculated using the Gordon growth model (GGM) formula for calculating current stock price

The GGM has the assumption that there will be a stable dividend growth rate year after year forever.

Tje GGM formula is given as follows:

P = d1 / (r - g) ……………………………………… (1)

Where;

P = Current share price = $30

d1 = Next year dividend = $3

r = Required rate of return or cost of equity = ?

g = Expected dividend growth rate = 1%, or 0.01

Substituting the values into equation (1) and solve for r, we have:

30 = 3 / (r - 0.01)

r - 0.01 = 3 / 30

r - 0.01 = 0.10

r = 0.10 + 0.01

r = 0.11, or 11%

Therefore, Slow 'and Steady cost of equity capital is 11%.

5 0

3 years ago

Crowl Corporation is investigating automating a process by purchasing a machine for exist793, 800 that would have a 9 year usefu

abruzzese [7]

Answer:

5.80% , option A is correct

Explanation:

The formula for the simple rate of return on the investment=annualprofit/net amount invested

annual profit amount=savings in cash operating costs-annual depreciation on the new machine=$133,000-$88, 200=$ 44,800.00

net amount of investment=pruchase cost of new machine-the scrap value of the old machine=$793, 800-$21, 200=$ 772,600.00

simple rate of return on investment=$ 44,800.00/$ 772,600.00=5.80%

7 0

3 years ago