A part structure, lead time (weeks), and on-hand quantities for product A are shown in Figure 14.14. From the information shown, generate: a) An indented bill of material for product A (see Figure 5.9 in Chapter 5 as an example of a BOM). b) Net requirements for each part to produce 10 As in week 8 using lot-for-lot.
> Access the Nolo Press Web site at http://www.nolo.com, and other publishers’ Web sites, and identify software products designed to help the young venture with its legal and accounting problems.
> Access the Small Business Administration Web site at http://www.sba.gov and find information on estimating start-up costs, preparing financial statements, and conducting breakeven analysis.
> A number of Web sites are available to help young ventures to measure their financial performance and to help them when they are growing and “ramping up” revenues. Access the http://money.cnn/magazines/business2/ Web site and identify sources helpful to
> LeAnn Sands wants to conduct operating breakeven analyses of the Salza Technology Corporation for year 2016. Income statement information is shown in Problem 8. For year 2016, the firm’s cost of goods sold is considered to be variable costs and operati
> LeAnn Sands has reason to believe that year 2017 will be a replication of year 2016 except that cost of goods sold are expected to be 65 percent of the estimated $450,000 in revenues. Other income statement relationships are expected to remain the same
> What are the three internal operating schedules that most firms must prepare?
> Define the term “EBIT.” How does EBIT differ from a firm’s net income or net profit?
> Briefly discuss the likely importance of an entrepreneur’s character and reputation on the success of a venture. What role does social responsibility plan in the operation of an entrepreneurial venture?
> What does an income statement measure or track over time?
> What types of liabilities might show up on a venture’s balance sheet?
> What is meant by the terms “depreciation” and “accumulated depreciation”?
> Briefly describe the typical types of accounts that are found in the current assets of a new venture.
> What is accrual accounting? What are generally accepted accounting principles (GAAP)?
> What is meant by breakeven drivers? Identify two important drivers affecting the amount of revenues needed for ventures to break even.
> Describe and illustrate how an EBDAT (survival) breakeven chart is constructed.
> Describe the meaning of EBDAT breakeven and survival revenues.
> Define the term EBDAT.
> What is a venture’s contribution profit margin?
> From an agency relationship standpoint, describe the possible types of problems or conflicts of interest that could inhibit maximizing a venture’s value.
> Define the term EBITDA.
> Describe the differences between variable expenses and fixed expenses.
> What is meant by net cash build and net cash burn?
> Briefly describe what is meant by a statement of cash flows.
> Access the Web sites of http://www.angeldeals.com, http://gatheringofangels.com, and http://www.vcfodder.com. Determine the scope and focus of these sites in terms of matchmaking financing services that are available for entrepreneurs.
> Access the http://www.garage.com Web site. Identify the angel matchmaking services that are provided. Determine the site’s focus in terms of early stage versus later stage financing, as well as the typical range of financing that is provided.
> Access the Inc. magazine Web site at http://www.inc.com. Identify a list of recent articles that relate to how to finance new ventures.
> What is meant by the term “intellectual property”?
> Describe the major taxation advantages of a limited liability company or a subchapter S corporation over a regular corporation.
> What is a limited partnership?
> What is the financial goal of the entrepreneurial venture? What are the major components for estimating value?
> What is first-round financing that occurs during the survival life cycle stage?
> Describe the meaning of financial bootstrapping.
> Describe the major differences between a proprietorship and a partnership.
> Access the Center for business Planning Web site at: www.businessplans.org. Find the reference to PlanWrite which is designed to help an entrepreneur to create a business plan. Identify and briefly describe what this software product provides.
> Describe the life cycle approach for teaching entrepreneurial finance.
> Access the Center for Business Planning Web site at www.businessplans.org. The site provides examples of business plans prepared by MBA students from top business schools and presented to panels of investors at recent Moot Corp. competitions hosted by th
> Identify the types of financing that typically coincide with each stage of a successful venture’s life cycle.
> New ventures are subject to periodic introspection on whether they should continue or abandon. Explain the types of information you would expect to gather and how it would be used in each stage to aid an entrepreneur’s approach to the venture’s future.
> What are the five stages in the life-cycle of a successful venture?
> Access the Inc. magazine Web site at www.inc.com. Identify a list of recent articles that relate to how business opportunities are evaluated by venture investors and/or articles discussing why venture investors chose not to invest in potential business o
> Interact Systems, Inc. has developed software tools that help hotel chains solve application integration problems. Interact’s Application Integration Server (AIS) provides a two-way interface between central reservations systems (CRS) and property manag
> The following ventures are at different stages in their life cycles. Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing. A. Phil Young, foun
> Elmer’s Fudge Factory is planning to open 10 retail outlets in Oregon over the next 2 years. Identify (and weight) those factors relevant to the decision. Provide this list of factors and weights.
> Courtney Kamauf schedules production of a popular Rustic Coffee Table at Kamauf Enterprises, Inc. The table requires a top, four legs, 18 gallon of stain, 1 16 gallon of glue, 2 short braces between the legs and 2 long braces between the legs, and a bras
> Coleman Rich, Ltd., has received the following orders: The entire fabrication for these units is scheduled on one machine. There are 2,250 usable minutes in a week, and each unit will take 65 minutes to complete. Develop a capacity plan, using lot spli
> Karl Knapps, Inc., has received the following orders: The entire fabrication for these units is scheduled on one machine. There are 2,250 usable minutes in a week, and each unit will take 65 minutes to complete. Develop a capacity plan, using lot split
> Using your answers for the lot sizes computed in Problems 14.22, 14.23, and 14.24, which is the best technique and why? Data Table for Problems 14.22 through 14.25* 1 2 3 4 5 6 7 8 9 10 11 12 PERIOD Gross requirements 30 40 30 70 20 10 80 50 *Holding
> Develop a lot-for-lot solution and calculate total relevant costs for the data in the preceding table. Data Table for Problems 14.22 through 14.25* 1 2 3 4 5 6 7 8 9 10 11 12 PERIOD Gross requirements 30 40 30 70 20 10 80 50 *Holding cost = $2.50/uni
> You are product planner for product A (in Problem 14.14 and Figure 14.14). The field service manager, Al Trostel, has just called and told you that the requirements for B and F should each be increased by 10 units for his repair requirements in the field
> Electro Fans has just received an order for one thousand 20-inch fans due week 7. Each fan consists of a housing assembly, two grills, a fan assembly, and an electrical unit. The housing assembly consists of a frame, two supports, and a handle. The fan a
> Given the product structure, master production schedule, and inventory status in Figure 14.13 on the next page and assuming the requirements for each BOM item is 1: a) develop a gross requirements plan for Item C; b) develop a net requirements plan for I
> Lake Charles Seafood makes 500 wooden packing boxes for fresh seafood per day, working in two 10-hour shifts. Due to increased demand, plant managers have decided to operate three 8-hour shifts instead. The plant is now able to produce 650 boxes per day.
> a) Given the product structure and master production schedule (Figure 14.12 below), develop a gross requirements plan for all items. b) Given the preceding product structure, master production schedule, and inventory status (Figure 14.12), develop a net
> Refer again to Problems 14.5 and 14.7. In addition to 100 units of S, there is also a demand for 20 units of U, which is a component of S. The 20 units of U are needed for maintenance purposes. These units are needed in week 6. Modify the net material re
> Refer again to Problems 14.5 and 14.6. In addition to 100 units of S, there is also a demand for 20 units of U, which is a component of S. The 20 units of U are needed for maintenance purposes. These units are needed in week 6. Modify the gross material
> Using the information in Problem 14.5, construct a net material requirements plan using the following on-hand inventory. ON-HAND INVENTORY ON-HAND INVENTORY ITEM ТЕМ 20 30 20 25 40 Y 240 V 30 40 Px
> Using the information in Problem 14.5, construct a gross material requirements plan. Reference from Problem 14.5: The demand for subassembly S is 100 units in week 7. Each unit of S requires 1 unit of T and 2 units of U. Each unit of T requires 1 unit o
> The demand for subassembly S is 100 units in week 7. Each unit of S requires 1 unit of T and 2 units of U. Each unit of T requires 1 unit of V, 2 units of W, and 1 unit of X. Finally, each unit of U requires 2 units of Y and 3 units of Z. One firm manufa
> Your boss at Xiangling Hu Products, Inc., has just provided you with the schedule and lead times for the bracket in Problem 14.3. The unit is to be prepared in week 10. The lead times for the components are bracket (1 week), base (1 week), spring (1 week
> You are expected to have the gift bags in Problem 14.1 ready at 5 p.m. However, you need to personalize the items (monogrammed pens, note pads, literature from the printer, etc.). The lead time is 1 hour to assemble 200 Js once the other items are prepar
> You have developed the following simple product structure of items needed for your gift bag for a rush party for prospective pledges in your organization. You forecast 200 attendees. Assume that there is no inventory on hand of any of the items. Explode
> A large St. Louis feed mill, Robert Orwig Processing, prepares its 6-month aggregate plan by forecasting demand for 50-pound bags of cattle feed as follows: January, 1,000 bags; February, 1,200; March, 1,250; April, 1,450; May, 1,400; and June, 1,400. Th
> Munson Performance Auto, Inc., modifies 375 autos per year. The manager, Adam Munson, is interested in obtaining a measure of overall performance. He has asked you to provide him with a multifactor measure of last year’s performance as a benchmark for fu
> The production planning period for flat-screen monitors at Louisiana’s Roa Electronics, Inc., is 4 months. Cost data are as follows: Regular-time cost per monitor………â
> Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows: The cost of producing each dialysis unit is $985 on regu
> Ram Roy’s firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportation method. What is the cost? Assume that the initial inventory has
> Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. The cost accounting department has supplied you the costs relevant to the aggregate plan, and the marketing department has provided a four-
> The S&OP team at Kansas Furniture, has received the following estimates of demand requirements: a) Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending i
> Hill is now considering plan C: Keep a stable workforce by maintaining a constant production rate equal to the average requirements and allow varying inventory levels. Beginning inventory, stock out costs, and holding costs are provided in Problem 13.3.
> Using the information in Problem 13.3, develop plan B. Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Evaluate this plan by computin
> Mattress Wholesalers, Inc., is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.5 million and inventory was $1.5 million. This year, cost of goods sold is $8.6 million and inventory investment is $1.6 millio
> The grocery industry has an annual inventory turnover of about 14 times. Organic Grocers, Inc. had a cost of goods sold last year of $10.5 million; its average inventory was $1.0 million. What was Organic Grocers’ inventory turnover, and how does that pe
> Baker Mfg. Inc. (see Table 11.9 ) wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory. a) What is Baker’s inventory turnover? b
> Hokey Min’s Kleen Karpet cleaned 65 rugs in October, consuming the following resources: a) What is the labor productivity per dollar? b) What is the multifactor productivity? Labor: 520 hours at $13 per hour Solvent: 100 gallons a
> Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $15,000 (as shown in the statement below)—inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a
> Reid Chocolates (see Problems 9.6 and 9.7) has yet two more layouts to consider. a) Layout 4 is shown below. What is the total trip distance? b) Layout 5, which also follows, has what total trip distance? Kitchen layout #4 Walking distance in feet C
> Reid Chocolates (see Problem 9.6) is considering a third layout, as shown below. Evaluate its effectiveness in trip distance feet. Kitchen layout #3 Walking distance in feet Refrig. Counter Sink (2) 3) 2 Storage 12 10 14 8. 4 Stove 5)
> Three departments—milling (M), drilling (D), and sawing (S)—are assigned to three work areas in Victor Berardis’s machine shop in Vent, Ohio. The number of work pieces moved per day and the distances
> Gordon Miller’s job shop has four work areas, A, B, C, and D. Distances in feet between centers of the work areas are: Work pieces moved, in hundreds of work pieces per week, between pairs of work areas, are: It costs Gordon $1 to m
> A small rural county has experienced unprecedented growth over the past 6 years, and as a result, the local school district built the new 500-student North Park Elementary School. The district has three older and smaller elementary schools: Washington, J
> Peggy Lane Corp., a producer of machine tools, wants to move to a larger site. Two alternative locations have been identified: Bonham and McKinney. Bonham would have fixed costs of $800,000 per year and variable costs of $14,000 per standard unit produce
> Peter Billington Stereo, Inc., supplies car radios to auto manufacturers and is going to open a new plant. The company is undecided between Detroit and Dallas as the site. The fixed costs in Dallas are lower due to cheaper land costs, but the variable co
> Northeastern Insurance Company is considering opening an office in the U.S. The two cities under consideration are Philadelphia and New York. The factor ratings (higher scores are better) for the two cities are given in the following table. In which city
> Subway, with more than 25,000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. The following table gives the factors for each site. a) At which site should Subway open the new restaurant?
> George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is
> Refer to Problem 8.3. If the final destination is New Delhi, India, and there is a 30% import tax, which firm should you choose? Reference Problem 8.3: You have been asked to analyze the bids for 200 polished disks used in solar panels. These bids have
> You have been asked to analyze the bids for 200 polished disks used in solar panels. These bids have been submitted by three suppliers: Thailand Polishing, India Shine, and Sacramento Glow. Thailand Polishing has submitted a bid of 2,000 baht. India Shin
> Refer to Problem 8.1. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $1.50 per unit. Shipping cost from China to Denver is $1 per unit, while the shipping cost from Billings to Denver is $.25 per unit. Considering both labor an
> Prepare a service blueprint for one of the activities in Problem 7.13. Reference from Problem 7.13: a) the registration process at a school b) the process at the local car wash c) a shoe shine d) some other process with the approval of the instructor
> Prepare a time-function map for one of the activities in Problem 7.13. Reference from Problem 7.13: a) the registration process at a school b) the process at the local car wash c) a shoe shine d) some other process with the approval of the instructor
> Prepare a process chart for one of the activities in Problem 7.13. Reference from Problem 7.13: a) the registration process at a school b) the process at the local car wash c) a shoe shine d) some other process with the approval of the instructor
> Stapleton Manufacturing intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed cost for proposal A is $65,000, and for proposal B, $34,000. The variable cost for A is $10, and for B, $14. The r
> Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is evaluating two alternatives. Machine A has a fixed cost for the first year of $75,000 and a variable cost of $16, with a capacity of 18,000 units per year. Machine B is
> California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as “Clunker.” Hi-Speed will have a
> Matthew Bailey, as manager of Designs by Bailey, is upgrading his CAD software. The high-performance (HP) software rents for $3,000 per month per workstation. The standard-performance (SP) software rents for $2,000 per month per workstation. The producti
> Lori Cook produces “Final Exam Care Packages” for resale by her sorority. She is currently working a total of 5 hours per day to produce 100 care packages. a) What is Lori’s productivity? b) Lori thinks that by redesigning the package, she can increase h
> Refer to Problem 7.1. If a contract for the second and third years is pending, what are the implications for process selection? Reference Data Problem 7.1: GENERAL- PURPOSE EQUIPMENT MANUFACTURING (GPE) FLEXIBLE DEDICATED МАCHINE SYSTEM (FMS) (DM)
> Using the data in Problem 7.1, determine the best process for each of the following volumes: (1) 75,000, (2) 275,000, and (3) 375,000. Reference Data Problem 7.1: GENERAL- PURPOSE EQUIPMENT MANUFACTURING (GPE) FLEXIBLE DEDICATED МАCHINE SYSTEM (FMS
> Using the data in Problem 7.1, determine the most economical volume for each process. Reference of Data Problem 7.1: GENERAL- PURPOSE EQUIPMENT MANUFACTURING (GPE) FLEXIBLE DEDICATED МАCHINE SYSTEM (FMS) (DM) Annual contracted 200,000 200,000 200,0
> Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three altern
