Reference no: EM132984540

Question: After a very successful career managing hedge funds, you have decided to purchase and operate a manufacturing business. As a result, you have located a business in Southwest Florida that is for sale.

ABC manufactures, installs, maintains and repairs solar heating systems for swimming pools and domestic hot water. It sells directly to the consumer and therefore is considered a turnkey firm. They are neither distributors nor dealers. Furthermore, all major components are manufactured by ABC using patents they hold. Your accountant has completed a thorough financial study of ABC and concludes that the asking price is up to 20% lower than fair market value depending upon the valuation method used. Also, you know that the owner has some health issues and is looking for a fast sale.

Your assessment of the business indicates that the current return on investment (ROI) after taxes is 30% based on the asking price. Also, you conservatively forecast that in an expanding market your net ROI would be about 40%. You are further comforted by the willingness of the current owner to serve as a contract employee for one year after you purchase the business. If need be you are in a position to pay cash for the business. You have become familiar with ABC's operations and like what you see except for three operational issues that need improvement. Identify three such issues of your choice. Fully describe each issue and select at least three quantitative operations modeling techniques from your textbook to resolve the issues.

Show all calculations in the appendices. Once you have developed the solutions, develop an implementation plan to rectify the problems. Feel free to make reasonable assumptions. However, you must state and defend them. Aim to produce a Term Paper of at least 3,000 words exclusive of references but including pertinent appendices. Use APA style. Submit a tentative outline of your paper to your instructor by the end of Week 4. A draft of your Term Paper is due by the conclusion of Week 6. The Final Term Paper, reflecting your instructor's feedback, is due the end of Week 15. It is necessary that you begin by researching the solar industry from the perspective of residential applications. This should enable you to select systems to offer homeowners and generate a production process concept after components are identified.

Try to keep your two basic product models simple. Also, keep in mind that some customers purchase solar systems for both pool water and domestic hot water heating. So, in actuality ABC offers three systems. A high-quality Term Paper emphasizes modeling and solving the three operations management problems of your choice. However, a fair amount of description is necessary to set up each analysis. Readings Course text and supplementary material to be supplied by your instructor.