Possible defect in the steering mechanism

Assignment Help Business Management
Reference no: EM131252930

Question:

CASE 1: PRODUCT RECALL

An automobile manufacturer is conducting a product recall after it was discovered that a possible defect in the steering mechanism could cause loss of control in certain cars. The recall covers a span of three model years. The company sent out letters to car owners promising to repair the defect at no cost at any dealership.

The company's policy is to pay the dealer a fixed amount for each repair. The repair is somewhat complicated, and the company expected learning to be a factor. In order to set a reasonable rate for repairs, company engineers conducted a number of repairs themselves. It was then decided that a rate of $88 per repair would be appropriate, based on a flat hourly rate of $22 per hour and a 90% learning rate.

Shortly after the dealers began making repairs, the company received word that several dealers were encountering resistance from workers who felt that the flat rate was much too low and were threatening to refuse to work on those jobs. One of the dealers has collected data on job times and has sent that information to the company. Three mechanics each completed two repairs. Average time for the first unit was 9.6 hours, and average time for the second unit is 7.2 hours. The dealer has suggested a rate of $110 per repair.

You have been asked to investigate the situation and prepare a report.

Foreign Exchange Rate: PHP44 = USD1

Questions:

1. Prepare a list of questions that you will need to have answered in order to analyze the situation.

2. Prepare a list of observations regarding the information provided in the case.

3. What preliminary thoughts do you have on solutions/partial solutions to the points you have raised? Suggest at least 3 strategies in order to remove its negative stigma and reassure the customers to continue buying the product.

4. How can Logistics Management help the company in dealing with its customers at the same time help the company in the 3 strategies you enumerated in #3?

Reference no: EM131252930

Questions Cloud

What are the time and space efficiencies of your algorithm : Binomial coefficient Design an efficient algorithm for computing the binomial coefficient C(n, k) that uses no multiplications. What are the time and space efficiencies of your algorithm?
Variant of bos with imperfect information : Consider another variant of the situation modeled by BoS, in which neither player knows whether the other wants to go out with her.
Various theories on free trade : What are some various theories on free trade? Please give some examples as to what countries have used them and any success they've had.
What are the time and space efficiencies of your algorithm : Binomial coefficient Design an efficient algorithm for computing the binomial coefficient C(n, k) that uses no multiplications. What are the time and space efficiencies of your algorithm?
Possible defect in the steering mechanism : An automobile manufacturer is conducting a product recall after it was discovered that a possible defect in the steering mechanism could cause loss of control in certain cars. The recall covers a span of three model years. The company sent out let..
Explain the conversation you would have with the employee : Formulate the conversation you would have with the employee, based the concepts found in Chapter 2 in your textbook. Format your assignment according to the following formatting requirements.
Payoffs in a variant of bos with imperfect information : Verify that B is a best response of type y1 of player 1 to the pair (B, S) of actions of player 2, and S is a best response to the pair of actions (S, S).
Finding the length of the longest path in a dag : Design an efficient algorithm for finding the length of the longest path in a dag. (This problem is important both as a prototype of many other dynamic programming applications and in its own right because it determines the minimal time needed for..
Design a dynamic programming algorithm : Design a dynamic programming algorithm and indicate its time efficiency. (The algorithm may be useful for, say, finding the largest free square area on a computer screen or for selecting a construction site.)

Reviews

Write a Review

Business Management Questions & Answers

  Motivation and performance management

Compare the difference between job satisfaction and organizational commitment. Determine which is more strongly related to performance for your selected company.

  Desiree is reluctant to take a promotion

Desiree is reluctant to take a promotion because it involves moving. She knows little about the area she would be living in. According to the text, the most likely reason for such employee resistance to change?

  Describe the difference between the iso and tqm in term of

Reliance Control Systems is a large manufacturer of control systems for the electrical power generation and distribution industry. Over the past few years, Reliance has watched overseas competitors take away market share with products that are priced..

  Influence is the ability to affect the behavior of others

influence is the ability to affect the behavior of others in a particular direction whereas power is the potential or

  Discuss the myriad elements management would consider

Discuss the myriad elements management would consider when anticipating union bargaining proposals? And, when would management officials prefer centralized (multi-plant) bargaining?

  Differences in the application of the ucc

What are potential differences in the application of the UCC?

  Void and illegal contracts

Sometimes contracts can be void, voidable or illegal depending on the type of engagements between the parties involved.

  Explain how would you specifically address this challenge

Your corporation has just introduced a new product with a new consumer. The VP of Material says "If you run out of material you lose your job". Was this good management and explain how would you specifically address this challenge?

  Define acute and chronic stress

1. Define acute and chronic stress. Provide examples. 2. What region of the brain detects stress and interprets the stimulus as dangerous? What is its function, and where does it relay the signal that conveys the danger? What format is the signal ..

  How do capacity decisions affect productivity

Briefly describe how uncertainty affects capacity decisions. Why is capacity planning for a service more challenging than it is for a goods producer? How do capacity decisions affect productivity?

  Important training sessionconsider you are a senior

important training sessionconsider you are a senior training consultant called in to assist a more junior colleague who

  Proposing alternative solutions central ideasthe central

proposing alternative solutions central ideasthe central idea of proposing alternative solutions include 1 to develop a

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd