What effect would this expansion have on current cost

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Reference no: EM13737163

Case Study- Current Time Period

You are a relative of the owner(s) of a small Bike (Bicycle) shop with a unique single style product line. The product line includes 5 different size bikes for both girls and boys. . The owner(s) have just discovered that the office space next to the Bike shop will be available at a monthly rent of $8200 per month effective January 2XX3. This additional floor space will double the owner(s) current floor space. Using the Operation Management (OM) techniques in your textbook, at a minimum, provide your recommendations for:

1. Should the owner(s) expand and what effect would this expansion have on current cost/expenses, the breakeven point, etc.?

2. What could the owner(s) do to improve their current operations?

Presentation

1. Introduction
• Purpose
o To grow sales by improving business processes and possibly expanding the business.
• Objective
o Improve current business processes
o Make a recommendation on expanding the business or not.
• Background

2. Part A "Recommendation to improve the Business Process"

• 4 to 6 recommendations
• There are three you must present. Hint chapters 3, 13 and 16.

For each recommendation
• Purpose
• How to use it
o Maybe example if it helps
• How it will benefit the business

3. Part B "Do you recommend to expand or not"

• If you recommend expansion you will need to present a new layout with expansion.

• Short intro on the situation
• Present your Business case analysis with no expansion and with expansion with advertisement.
o Provide a separate file with all you analysis calculation

• Present summary of your Analysis
• Present your recommendation
o Why

4. Conclusion
• Summary Part A
• Summary Part B
• Overall conclusion.

Reference no: EM13737163

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