How could a grocery store use inventory to increase the responsiveness of the company’s supply chain?
> At the end of 2011, China’s government debt was ¥4,700 billion (¥ is yuan, the currency of China). In 2012, the government spent ¥6,000 billion and ended the year with a debt of ¥5,300 billion. How much did the government receive in tax revenue in 2012?
> Does Canada have a stable short-run Phillips curve? Explain why or why not.
> How do we tell whether a budget deficit needs discretionary action to remove it?
> How do taxes and transfer payments programs work as automatic fiscal policy to dampen the business cycle?
> What is the Laffer curve and why is it unlikely that Canada is on the “wrong” side of it?
> Why are income taxes on capital income more powerful than those on labour income?
> U.K. Prime Minister David Cameron on Monday warned that “time was short” for Eurozone leaders bidding to solve a debt crisis. Cameron called on Germany to accept the “collective responsibility” of the euro project and beef up the zone’s 440-billion-euro
> In The New York Times articles and in blogs, economists Paul Krugman and Joseph Stiglitz say that, with slow recovery from recession, there is a need for more fiscal stimulus in both the United States and Europe despite the large federal budget deficit a
> Answer the following questions. a. What was the state of the Japanese economy in 2013? b. Explain the effects of Japan’s high level of government spending and debt on the level of employment and potential GDP. c. Explain how inflation and faster growth m
> China’s economy is slowing from its normal 9 percent or higher economic growth rate to just below 9 percent. The source of the slowdown is the global economic slowdown that is restricting exports growth and the government’s deliberate decision to discour
> The economy is growing slowly, the inflationary gap is large, and there is a budget deficit. a. Do we know whether the budget deficit is structural or cyclical? Explain your choice and sketch a graph to illustrate your answer. b. Do we know whether autom
> The economy is in a boom and the inflationary gap is large. a. Describe the discretionary and automatic fiscal policy actions that might occur. b. Describe a discretionary fiscal restraint package that could be used that would not produce serious negativ
> If the natural unemployment rate increases, what happens to the short-run Phillips curve and the long-run Phillips curve?
> How does demand-pull inflation begin?
> 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.
> 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?
> 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
> In what way do supply chain flows affect the success or failure of a firm like Amazon? List two supply chain decisions that have a significant impact on supply chain profitability.
> 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.
> What types of networks are best suited to highly differentiated products?
> Consider a firm such as Ford, with more than 150 facilities worldwide. List the pros and cons of having many facilities and why it may or may not be suitable for the automobile industry.
> Consider a firm such as Dell, with very 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 maintenance, repair, and operations equipment from five warehouses in the United States. WW Grainger sells products from more than 350 retail locations, supported by several warehouses. In both cases, customers place orders using the
> Consider the supply chain involved when a customer purchases a book at a bookstore. Identify cycles in this supply chain and the location of the push/pull boundary.
> Amazon.com has built new warehouses as it has grown. How does this change affect various cost and response times in the Amazon.com supply chain?
> How is the rise in transportation costs likely to affect global supply chain networks?
> How do import duties and exchange rates affect the location decision in a supply chain?
> How do the location and size of warehouses affect the performance of a firm such as Amazon.com? What factors should Amazon.com take into account when making this decision?
> Consider the sale of home improvement products at Home Depot or a chain of hardware stores such as True Value. Who can extract the greatest benefit from going online? Why?
> Is e-business likely to be more beneficial in the early part or the mature part of a product’s life cycle? Why?
> Why has e-business been more successful in the computer hardware industry compared to the grocery industry? In the future, how valuable is e-business likely to be in the computer hardware industry?
> In the future, do you see the value added by distributors decreasing, increasing, or staying about the same?
> What types of distribution networks are typically best suited for commodity items?
> A distributor has heard that one of the major manufacturers from which it buys is considering going direct to the consumer. What can the distributor do about this? What advantages can it offer the manufacturer that the manufacturer is unlikely to be able
> What are some strategic planning and operational decisions that must be made by an apparel retailer like The Gap?
> A specialty chemical company is considering expanding its operations into Brazil, where five companies dominate the consumption of specialty chemicals. What sort of distribution network should this company use?
> Why should an e-business such as Amazon.com build more warehouses as its sales volume grows?
> Amazon.com sells books, music, electronics, software, toys, and home improvement products online. In which product category does e-business offer the greatest advantage compared with a retail store chain? In which product category does e-business offer t
> What differences in the retail environment may justify the fact that the fast-moving consumer goods supply chain in India has far more distributors than in the United States?
> On which supply chain drivers should a firm trying to shrink its cash-to-cash cycle focus?
> How can the full set of logistical and cross-functional drivers be used to create strategic fit for a PC manufacturer targeting both time sensitive and price conscious customers?
> What are some industries in which products have proliferated and life cycles have shortened? How has the supply chains in these industries adapted?
> How can a home delivery company like Peapod use pricing of its delivery services to improve its profitability?
> Motorola has gone from manufacturing all its cell phones in-house to almost completely outsourcing the manufacturing. What are the pros and cons of the two approaches?
> How could an industrial supplies distributor use information to increase its responsiveness?
> Why should a firm like Dell take into account total supply chain profitability when making decisions?
> How could a bicycle manufacturer increase responsiveness through its facilities?
> How could an auto manufacturer use transportation to increase the efficiency of its supply chain?
> Would you expect a brick-and-mortar retailer or an online retailer to have a higher asset turnover? Which supply chain drivers impact asset turnover?
> Give arguments to support the statement that Wal-Mart has achieved very good strategic fit between its competitive and supply chain strategies.
> Reconsider the previous four questions for other companies such as Amazon.com, a supermarket chain, and auto manufacturer, and a discount retailer such as Wal-Mart.
> How can Nordstrom expand the scope of the strategic fit across the supply chain?
> What level of responsiveness would be most appropriate for Nordstrom’s supply chain? What should the supply chain be able to do particularly well?
> Where would you place the demand faced by Nordstrom on the implied demand uncertainty spectrum? Why?
> How would you characterize the competitive strategy of a high-end department store chain such as Nordstrom? What are the key customer needs that Nordstrom aims to fill?
> Consider the purchase of a can of soda at a convenience store. Describe the various stages in the supply chain and the different flows involved.
> Explain the advantages of using market price as a transfer price.
> What does responsibility accounting imply with respect to holding managers responsible for standard cost variances?
> The Xtreme Board Company manufactures skateboards. The president of the company, Greg Conklin, believes: “You get what you measure!” Accordingly, he would like to include a number of nonmonetary measures related to factors that affect the success of the
> The Champion Chemical Company has a number of divisions that produce and market paints, varnishes, and other chemical products. The company also has a small plant that manufactures metal containers for the divisions’ various products. The plant, which ha
> The variance summary for Bell Computers is as follows: Required: Prepare a journal entry to close the variance accounts at Bell Computers. Assume that the total variance is not material and is closed to cost of goods sold. Bell Computers Variance Su
> What is the problem with using only financial measures of performance?
> Distinguish among cost centers, profit centers, and investment centers.
> How could costly duplication of activities occur in a decentralized operating environment?
> The strategy for success at Sassy Jeans calls for rapid growth, a limited number of units for each design to enhance exclusivity, perfect fit, on-time delivery to customers, retaining employees who contribute to innovation, and control of inventory. Req
> In the fourth quarter of 2017, Eurofit Cycling, a bike shop, had the following net income: Sales…………………â
> Fenzel Slide Oil produces a lubricant, SlickTone, which is used on trombone slides. Information about the budget for the year 2018 is as follows: 1. The company expects to sell 7,000 bottles of SlickTone in the first quarter, 6,000 in the second quarter
> Barret Hospital is interested in analyzing overhead related to laundry services. The hospital administrator estimated that monthly fixed costs would be $90,000, and variable costs would be $3.00 per patient day. During the month of September, the hospita
> What is management by exception?
> What factors should be considered when investigating variances?
> Department managers at Nadaire Department Stores are allowed considerable discretion in sourcing and pricing products based on local tastes and competition. They are also responsible for staffing their departments. Required: Suggest two financial perfor
> The Lyndstrom Glass Company is a manufacturer of automotive glass and glass products used in the home. Discuss the advantages of forming two divisions (an Automotive division and a Home Products division) and allowing the division managers substantial de
> A major software company has established customer service centers in India, Ireland, and Israel to provide support to its U.S. customers with foreign operations. The prices that the company charges for software reflect estimated costs in operating the ce
> At Frigicor, the standard quantity of labor is 22 hours per refrigeration unit. The standard wage rate is $35. In July, the company produced 75 refrigeration units and incurred 2,100 labor hours at a cost of $69,000. Required: Calculate the labor rate v
> At Frigicor, the standard price for the M640 electrical relay (a component used in the production of a commercial refrigeration unit) is $57. Standards call for 2.5 relays per unit of finished product. In July, the company purchased 150 relays for $8,900
> LEO Corporation has five divisions, each of which is managed by a divisional president who reports to the chief executive officer of LEO. LEO is decentralized, and divisional presidents are granted authority to make investments under $3,000,000 without p
> What role do standard costs play in controlling the operations of a business?
> Super Clean produces and sells stain remover. Information about the budget for the year 2018 is as follows: 1. The company expects to sell 57,000 bottles of stain remover in the first quarter, 65,000 in the second quarter, 105,000 in the third quarter,
> Overhead volume variances do not signal that overhead costs are in or out of control. Do you agree? Explain.
> How might a favorable material price variance or a favorable labor rate variance be related to an unfavorable material quantity variance?
> How are standard costs developed for direct materials, direct labor, and manufacturing overhead?
> List four advantages related to decentralization of a firm’s operations.
> Poseidon Electronics operates 10 stores in Washington, Oregon, and California, selling consumer electronics including stereo equipment and home theater systems. The following financial information is available for 2018 and 2017: Required: a. Although ne
> Atomic Electronics is considering instituting a plan whereby managers will be evaluated and rewarded based on a measure of economic value added (EVA). Before adopting the plan, management wants you to calculate what EVA will be in 2018, based on financia
> Consider the following information for Executive Electronics: Required: a. Evaluate the company in terms of residual income (RI), which is equivalent to EVA since there are no adjustments for accounting distortions. b. While income has increased in fis
> Consider the following information for McKinley and Son: Required: a. Evaluate the company in terms of ROI. b. While income has increased in fiscal 2018, is it clear that the company’s performance has improved? 12/31/2017 12/31/20
> Top management of the Gates Corporation is trying to construct a performance evaluation system to use to evaluate each of its three divisions. This past year’s financial data are as follows: Required: a. How would the divisions be rank
> Sarah Jones, the manager of the Teen division of the Eve Clothing Company, was evaluating the acquisition of a new embroidery machine. The budgeted operating income of the Teen division was $5,000,000 with total assets of $33,000,000 and noninterest-bea
> Pinnacle Engineering, an acclaimed chemical engineering team of engineers, chemists, and other scientists, had the following income in 2017: The following changes are expected in 2018: 1. The company is expecting a 12 percent increase in revenues becau
> Montana Woolen Products has two divisions: a Fabric division that manufactures woolen fabrics and a Clothing division that manufactures woolen dresses, coats, shirts, and accessories. All fabric used by the Clothing division is supplied by the Fabric div
> The City of Medina Park operates a plumbing and electrical maintenance department, responsible for maintaining all water and electric service functions in buildings owned by the city. The city administration is concerned about the rising costs of the mai
> The Leviathan Steel Company has a coal-mining subsidiary in West Virginia. A substantial amount of the coal produced by the subsidiary is used by Leviathan’s steel foundries located in Pennsylvania. Required: a. Recommend and defend a transfer price (m
> Kasper Industries produces custom molds that are used by producers of molded products (e.g., ski boots and snowboards). Many of its customers use just-in-time (JIT) manufacturing, and on-time delivery of the molds is critical because production is halted
> Consider the following data related to the financial performance of Royal Company: Between 2015 and 2018, income increased by 63 percent, showing a significant increase in income each year. In light of this performance, the board of directors has awarde
> The Spectrum Book Company has two divisions: The Brick and Mortar division sells books through more than 100 bookstores throughout the United States; the Internet division was formed 18 months ago and sells books via the Internet. Data for the past year
> Magellan Materials manufactures metal and plastic gutters for use in commercial and residential construction. Production occurs in two separate plants. Distribution is from a central warehouse, and there is a centrally managed sales office. Both producti
> Bechtel Technical Clothing produces parkas used by arctic explorers, mountain climbers, and people living in Minnesota. The company uses a standard costing system, and standards call for 2.5 yards of material at $55 per yard for each parka. The standard
> The National Battery Company produces a wide variety of batteries for home, automobile, and marine use. One example of its many products is the Road Guardian automobile battery. The standard cost for this battery is as follows: Standard cost, road guardi
> In her review of annual production variances, Amy Abel, CFO of Chanceworth Manufacturing, noted that there was a $80,000 favorable material price variance, a $70,000 unfavorable material quantity variance, an $90,000 favorable labor rate variance, and a
> Modern Healthcare, a group practice clinic with 10 physicians, had the following income in 2017: The following changes are expected in 2018: 1. The clinic is expecting a 2 percent decline in revenues because of increasing pressure from insurance compan
