Channel support systems initiative

Assignment Help Operation Management

Reference no: EM132202209

Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in this and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,405,682. Assuming similar sales next year, the 3.0% increase in demand will provide $4,902,170 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $1,671,640 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest month?

1-14 months

2-TQM investment will not have a significant financial impact

3-5 months

4-10 months

From a marginal analysis perspective, what is the inventory carry cost for Andrews if the company carries one additional unit of Awe in inventory at the end?

1-$2.47

2-$1.37

3-$11.45

4-$4.93

Increasing the promotional budget for a product in order to increase awareness is not advisable in the short run under which of the following circumstances?

1-Accessibility is less than 80%

2-Production capacity is maxed out (200% plant utilization) and the company is stocking out of the product

3-Demand in the segment is increasing

4-One or more competitor has increased price

In three years, assuming the competitive environment remains unchanged, how many units of Bolt will Baldwin be selling in the Nano market segment?

Select: 1

1-561

2-716

3-639

4-431

According to information found on the production analysis page of the Inquirer, Baldwin sold 1127 units of Bolt in the current year. Assuming that Bolt maintains a constant market share, all the units of Bolt are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Bolt will not be able to meet future demand unless the company adds production capacity? Exclude any existing inventory.

1-3 year(s)

2-1 year(s)

3-4 year(s)

4-2 year(s)

Reference no: EM132202209

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