Consider a supermarket deciding on the size of its replenishment order from Procter & Gamble. What costs should it take into account when making this decision?
> Turnberry Golf Corporations long-term debt agreements make certain demands on the business. For example, Turnberry may not purchase treasury stock in excess of the balance of retained earnings. Also, long-term debt may not exceed stockholders equity , an
> The accounting records of Central Distributors, Inc., reveal the following: Requirement 1. Compute cash flows from operating activities by the indirect method. Use the format of the operating activities section of Exhibit 12-6. Also evaluate the operat
> Indicate whether each of the following transactions records an operating activity, an investing activity, a financing activity, or a noncash investing and financing activity. Cash 85,000 g. Equipment 15,600 a. Common Stock 14,000 Cash 15,600 Capital
> Burke-Cassidy Investments specializes in low-risk government bonds. Identify each of Burke-Cassidys transactions as operating (O), investing (I), financing (F), noncash investing and financing (NIF), or a transaction that is not reported on the statement
> Compute the following items for the statement of cash flows: a. Beginning and ending Accounts Receivable are $25,000 and $20,000, respectively. Credit sales for the period total $62,000. How much are cash collections from customers? b. Cost of goods so
> The income statement and additional data of Cobbs Hill, Inc., follow: Additional data: a. Collections from customers are $13,000 more than sales. b. Payments to suppliers are $1,300 less than the sum of cost of goods sold plus advertising expense. c.
> Evaluate the common stock of Regal Distributing Company as an investment. Specifically, use the three common stock ratios to determine whether the common stock increased or decreased in attractiveness during the past year. 2010 2009 Net income.. $ 83
> The accounting records of Princeton Pharmaceuticals, Inc., reveal the following: Requirement 1. Compute cash flows from operating activities by the direct method. Also evaluate Princeton’s operating cash flow. Give the reason for your
> Compute the following items for the statement of cash flows: a. Beginning and ending Plant Assets, Net, are $110,000 and $106,000, respectively. Depreciation for the period was $9,000, and purchases of new plant assets were $33,000. Plant assets were so
> Consider three independent cases for the cash flows of 579 Pavilion Shoes. For each case, identify from the statement of cash flows how 579 Pavilion Shoes generated the cash to acquire new plant assets. Rank the three cases from the most healthy financia
> The income statement and additional data of Newbury Travel Products, Inc., follow: Additional data: a. Acquisition of plant assets was $212,000. Of this amount, $160,000 was paid in cash and $52,000 by signing a note payable. b. Proceeds from sale of
> Suppose AOL Time Warner, Inc., is having a bad year in 2011, as the company has incurred a $4.9 billion net loss. The loss has pushed most of the return measures into the negative column and the current ratio dropped below 1.0. The companys debt ratio is
> The accounting records of Wilderness Fur Traders include these accounts: Requirement 1. Compute Wilderness net cash provided by (used for) operating activities during May. Use the indirect method. Does Wilderness have trouble collecting receivables or
> The accounting records of North East Distributors, Inc., reveal the following: Requirement 1. Compute cash flows from operating activities by the indirect method. Use the format of the operating activities section of Exhibit 12-6. Also evaluate the ope
> A skeleton of Athol Country Florists income statement appears as follows (amounts in thousands): Use the following ratio data to complete Athol Country Florists income statement: a. Inventory turnover was 4 (beginning inventory was $784; ending invento
> Tucker-Breen Investments specializes in low-risk government bonds. Identify each of Tucker-Breens transactions as operating (O), investing (I), financing (F), noncash investing and financing (NIF), or a transaction that is not reported on the statement o
> Use the data in Short Exercise 12-14 to prepare Middleton Golf Club, Inc.s statement of cash flows for the year ended September 30, 2010. Middleton uses the direct method for operating activities. From 12-14: Middleton Golf Club, Inc., has assembled the
> Middleton Golf Club, Inc., has assembled the following data for the year ended September 30, 2010: Prepare the operating activities sectionof Middleton Golf Club, Inc.s statement of cash flows for the year ended September 30, 2010. Middleton uses the di
> Horse Heaven Horse Farm, Inc., began 2010 with cash of $170,000. During the year, Horse Heaven earned service revenue of $590,000 and collected $480,000 from customers. Expenses for the year totaled $320,000, with $310,000 paid in cash to suppliers and e
> Use the Motorcars of Miami data in Short Exercise 12-9 to compute the following: (Enter all amounts in thousands). a. Payments to employees b. Payments of other expenses from 12-9: Motorsports of Miami, Inc., reported the following financial statement
> A skeleton of Athol Country Florists balance sheet appears as follows (amounts in thousands): Use the following ratio data to complete Athol Country Florists balance sheet: a. Debt ratio is 0.50. b. Current ratio is 1.30. c. Acid-test ratio is 0.40.
> Selected accounts of Elizabeth Antiques show the following: Requirement 1. For each account, identify the item or items that should appear on a statement of cash flows prepared by the direct method. State where to report the item. Salary Payable Be
> Selected accounts of Ashley Antiques show the following: Requirement 1. For each account, identify the item or items that should appear on a statement of cash flows prepared by the direct method. State where to report the item. Salary Payable Begin
> Indicate whether each of the following transactions records an operating activity , an investing activity , a financing activity , or a noncash investing and financing activity . Depreciation Expense Accumulated Depreciation a. 11,000 h. Cash 50,000
> Use the Motorsports of Miami data in Short Exercise 12-9 to compute the following: (Enter all amounts in thousands.) a. Collections from customers b. Payments for inventory From 12-9: Motorsports of Miami, Inc., reported the following financial state
> Fenton, Inc., reported the following sales and net income amounts: Show Fentons trend percentages for sales and net income. Use 2007 as the base year. (In thousands) 2010 2009 2008 2007 Sales . Net income................ $10,020 $8,960 $8,740 $8,490
> Hialeah Bells trend of return on sales is a. worrisome. b. declining. c. improving. d. stuck at 20.8%.
> Hialeah Bells inventory turnover during fiscal year 2010 was a. 130 times. b. 81 times. c. 41 times. d. very slow.
> Using the earliest year available as the base year, the trend percentage for Hialeah Bells net revenue during 2010 was a. 121%. b. up by 21.2%. c. up by $11,820 million. d. 138%.
> How many items enter the computation of Sheehans net cash flow from financing activities for 2010? a. 7 b. 3 c. 5 d. 2
> The book value of equipment sold during 2010 was $21,000. Sheehans net cash flow from investing activities for 2010 was a. net cash used of $23,500. b. net cash used of $53,000. c. net cash used of $50,000. d. net cash used of $44,0
> How many items enter the computation of Sheehans net cash flow from investing activities for 2010? a. 5 b. 3 c. 7 d. 2
> Sheehans net cash provided by operating activities during 2010 was a. $53,000. b. $50,000. c. $47,000. d. $44,000.
> How do accounts receivable affect Sheehans cash flows from operating activities for 2010? a. Decrease in cash provided by operating activities. b. Decrease in cash used by investing activities. c. Increase in cash provided by operati
> How do Sheehans accrued liabilities affect the companys statement of cash flows for 2010? a. Increase in cash used by investing activities. b. Increase in cash provided by operating activities. c. Increase in cash used by financing a
> Use the Motorsports of Miami data in Short Exercise 12-9 to compute the following: (Enter all amounts in thousands.) a. New borrowing or payment of long-term notes payable. Motorsports of Miami had only one long-term note payable transaction during the y
> The 2011 income statement and the 2011 comparative balance sheet of T-Bar-M Camp, Inc., have just been distributed at a meeting of the camps board of directors. The directors raise a fundamental question: Why is the cash balance so low? This question is
> As a firm gets better at postponement (can postpone at lower cost), should it increase/leave unchanged/decrease the variety that it offers? Why?
> Consider a firm such as Zara that has developed production capabilities with very short replenishment lead times. Do you think this capability is more valuable for its online operations or its store operations? Why?
> What is the role of safety inventory in the supply chain?
> Why is it appropriate to include only the incremental cost when estimating the holding and order cost for a firm?
> Why do manufacturers such as Kraft and Sara Lee offer trade promotions? What impact do trade promotions have on the supply chain? How should trade promotions be structured to maximize their impact while minimizing the additional cost they impose on the s
> What is the difference between lot size-based and volume-based quantity discounts?
> When are quantity discounts justified in a supply chain?
> Discuss why supply chain profits may be hurt by a retailer making lot sizing decisions with the sole objective of minimizing its own costs. What advantage would result if the entire supply chain could coordinate this decision?
> The manager at the supermarket in Question 1 wants to decrease the lot size without increasing the costs he incurs. What actions can he take to achieve his objective?
> As demand at the supermarket chain grows, how would you expect the cycle inventory measured in days of inventory to change? Explain.
> What are some problems that can arise when each stage of a supply chain focuses solely on its own profits when making decisions? Identify some actions that can help a retailer and a manufacturer work together to expand the scope of strategic fit.
> Discuss how various costs for the supermarket change as it decreases the lot size ordered from Procter & Gamble.
> What are the different CPFR scenarios and how do they benefit supply chain partners?
> How is the building of strategic partnerships and trust valuable within a supply chain?
> How do trade promotions and price fluctuations affect coordination in a supply chain? What pricing and promotion policies can facilitate coordination?
> What factors lead to a batching of orders within a supply chain? How does this affect coordination? What actions can minimize large batches and improve coordination?
> What problems result if each stage of a supply chain views its demand as the orders placed by the downstream stage? How should firms within a supply chain communicate to facilitate coordination?
> In what way can improper incentives lead to a lack of coordination in a supply chain? What countermeasures can be used to offset this effect?
> What is the impact of lack of coordination on the performance of a supply chain?
> What is the bullwhip effect and how does it relate to lack of coordination in a supply chain?
> What is the difference in implied uncertainty faced by a convenience store chain such as 7-Eleven, a supermarket chain, and a discount retailer such as Costco?
> Why would a firm want to offer pricing promotions during its low-demand periods?
> Why would a firm want to offer pricing promotions in its peak-demand periods?
> How can a firm use pricing to change demand patterns?
> Discuss how a company can get marketing and operations to work together with the common goal of coordinating supply and demand to maximize profitability.
> What are some product lines that use common parts across many products? What are the advantages of doing this?
> Discuss how you would set up a collaboration mechanism for the enterprises in a supply chain.
> In which industries would you tend to see dual facility types (some facilities focusing on only one type of product and others able to produce a wide variety)? In what industries would this be relatively rare? Why?
> Discuss why the use of subcontractors to handle peak demand can often allow a company to meet demand at lower cost even though the subcontractor price is higher than the average unit cost of the company.
> What are some obstacles to creating a flexible workforce? What are the benefits?
> How can aggregate planning be used in an environment of high demand uncertainty?
> What are some factors that influence implied uncertainty? How does the implied uncertainty differ between an integrated steel mill that measures lead times in months and requires large orders and a steel service center that promises 24-hour lead times an
> What are some key issues to consider when picking an aggregate unit of analysis?
> If a company currently employs the chase strategy and the cost of training increases dramatically, how might this change the company’s aggregate planning strategy?
> How does the availability of subcontracting affect the aggregate planning problem?
> What are the major cost categories needed as inputs for aggregate planning?
> What types of industries or situations are best suited to the chase strategy? The flexibility strategy? The level strategy?
> What are the main differences among the aggregate planning strategies?
> What are the characteristics of these industries that make them good candidates for aggregate planning?
> What are some industries in which aggregate planning would be particularly important?
> What information do the MSE, MAD, and MAPE provide to a manager? How can the manager use this information?
> How do static and adaptive forecasting methods differ?
> In what way do supply chain flows affect the success or failure of a firm such as Amazon? List two supply chain decisions that have a significant impact on supply chain profitability.
> What is the problem if a manager uses last year’s sales data instead of last year’s demand to forecast demand for the coming year?
> Give examples of products that display seasonality of demand.
> Why should a manager be suspicious if a forecaster claims to forecast historical demand without any forecast error?
> What systematic and random components would you expect in demand for chocolates?
> What role does forecasting play in the supply chain of a mail order firm such as LL Bean?
> How could Apple use collaborative forecasting with its suppliers to improve its supply chain?
> What information do the bias and TS provide to a manager? How can the manager use this information?
> What role does forecasting play in the supply chain of a build-to-order server manufacturer such as Dell?
> What are some major nonfinancial uncertainties that a company should consider when making decisions on where to source product?
> What are the major financial uncertainties faced by an electronic components manufacturer deciding whether to build a plant in Thailand or the United States?
> Consider the supply chain involved when a customer orders a book from Amazon. Identify the push/pull boundary and two processes each in the push and pull phases.
> Discuss why using expected trends for the future can lead to different supply chain decisions relative to decision tree analysis that accounts for uncertainty.
> Summarize the basic steps in the decision tree analysis methodology.
> Describe the basic principle of DCFs and how it can be used to compare different streams of cash flows.
> What are the major sources of uncertainty that can affect the value of supply chain decisions?
> Why is it important to consider uncertainty when evaluating supply chain design decisions?
> Consider a firm such as Ford, with more than 150 facilities worldwide. List the pros and cons of having many facilities and why this model may or may not be suitable for the automobile industry.
> Consider a firm such as Apple or Dell, with few production facilities worldwide. List the pros and cons of this approach and why it may or may not be suitable for the computer industry.
> McMaster-Carr sells MRO equipment from five warehouses in the United States. W.W. Grainger sells products from more than 300 retail locations, supported by several warehouses. In both cases, customers place orders using the Internet or on the phone. Disc
> Amazon has built new warehouses as it has grown. How does this change affect various costs and response times in the Amazon supply chain?
