...network strategy the group of investors not only owns the production facility but also have the opportunity to invest in and/or own suppliers to ensure the lowest costs. The Keiretsu network is the best choice for Investor group A because it is part collaboration part purchasing from a few suppliers and part vertical integration. It combines the benefits of using few suppliers such as suppliers having a large commitment to the buyer and more likely to have a better understanding of the broad objectives of the manufacturer and the end consumer. The Keiretsu network provides an assured price structure, predictable inventory and delivery schedules as well as clear quality and performance standards. A stable environment such as this close cooperation between the supplier and the manufacturer can lead to quality improvements, continual product development and reductions in cost. As stated before vertical integration is a component of the keiretsu network, with vertical integration the manufacturer has the ability to produce supplies that were previously purchased or to actually buy a supplier. Advantages of this would be inventory reduction and scheduling, cost reductions, and adherence to quality standards. The strategy of using many suppliers and playing them against one another is a strategy that is best used when the products are commodities and maintaining long term relationships is not a goal with this strategy. Measuring supply chain performance is essential for supply...
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...how prescription drugs affect the demand and supply of other products 3 Formulate a reason why the elasticity of demand is an important consideration 4 Provide two (2) examples of increasing-cost industries in your state and propose 4 Suggest how, under certain conditions, a perfectly competitive market 5 Use at least three (3) quality resources in this assignment 6 References. 7 1. Suggest how an economist would approach the problem of alcohol abuse. Provide two (2) possible solutions to this problem. Include the four (4) elements of the economic way of thinking in your analysis. During the twenty-five years experience of the Navy, they taught only two solutions to an individual’s alcohol abuse problem, education, and treatment. Alcohol abuse can be cure, and there are treatment facilities to help get their life back on track. The four element of the economic way of thinking would be Market forces, rational behavior, Opportunity Cost, Cost Benefit Analysis. According to Pettinger (2008), “The aim is to find patterns and use this to predict likely outcomes. In the real world, it is often difficult to model behavior because there are so many different variables”. (Para. 3) That is the therapy. 2. Analyze how prescription drugs affect the demand and supply of other products and services in this country. With these types of illness and injuries in the world today, there is a major demand for prescription drug. In most cases, some individual’s needs for drugs...
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...Earth Baby Analysis | [Type the document subtitle] | | [Type the author name] | 4/2/2014 | Earth Baby, Inc. (EBI) is an organization that has created brand recognition from its quality products aimed at health-conscious parents. EBI has been approached by Great Deal, Inc. (GDI) to propose a joint venture. GDI wants to use the company’s superior distribution channels to sell EBI baby food that is manufactured and sold as a GDI product manufactured by EBI. Prior to making a decision on whether or not EBI should accept or deny the proposal from GDI, EBI must consider the results from a cost and strategic analysis that focus on the benefits and disadvantages from accepting or rejecting the proposal, both short-term and long-term. After careful assessment of the analysis, EBI will then have a clear view on how the proposal will affect the business and allow the organization to implement the best course of action. EBI’s Chief Financial Officer (CFO), Fred Stanley, has already provided initial calculations to assist in the decision-making process. The CFO has calculated a full cost of three dollars per jar of baby food for EBI to manufacture and distribute its own products. However, one dollar is calculated as irrelevant fixed overhead. The variable costs total two dollars per jar of baby food which are thee costs that EBI would be responsible for if it accepts the proposal from GDI. If the proposal is accepted, GDI will agree to pay EBI three dollars and ten cents per...
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...Costs Effected By Returns and Customer Complaints in Boot Division There are three types of costs when quality considerations are made, appraisal costs, prevention costs, and failure costs. Failure costs include internal and external failures. An explanation of these costs are listed below: * Appraisal costs are costs that the company incurs to ensure quality or uncover defects. This includes but is not limited to costs such as testing equipment, inspection of materials, labs, quality audits, field-testing, and other inspection costs. * Prevention costs are the costs associated with preventing defects from occurring. This includes costs such as the designing a better quality product, increased maintenance on equipment, quality control procedures, training of employees, planning and administration procedures, working with vendors, and any extra time that is devoted to decreasing the probability of defective workmanship. * Defective parts or products by faulty services cause failure costs. * Internal failures are failures that are discovered during the production process or prior to the customer ever coming into contact with the product. There are many reasons the internal failures can occur including defective materials, incorrect methods or processing, or faulty equipment. * External failures are failures that are discovered after the customer has the product. This type of failure becomes very costly to the...
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...Company | Date: | June 22, 2016 | Re: | Quality Considerations | | | As you are aware, our consumers expect a certain level of quality from the products that we produce. This level of quality helps gain an advantage over our competitors and keeps our business growing. In order to maintain this level of quality we have come to be known for, we must consider the three main costs associated with producing quality products. The three types of costs associated with quality consideration are appraisal costs, failure costs, and prevention costs. I would like to bring these to your attention and explain more about each of these costs. I will also explain my analysis for potential trade-offs for costs incurred in these categories. Failure costs can be both internal and external. Internal failure costs occur when defects are discovered and corrected prior to our product reaching the customer. These costs arise when our quality of work fails to reach the standards our customers require and need to be corrected. There are a number of factors that contribute to internal failures such as reworking the product and starting over, cost of finding the issue, employee injuries , etc. External failure costs are ones that are uncovered after the product has reached our customer, and are much more damaging in terms of costs. These external failure costs include customers returning the items, warranty claims, and liability claims. Appraisal costs are those related to testing, inspecting...
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...QHT1 Task 1 | | | | There are three types of costs when quality considerations are made, appraisal costs, prevention costs, and failure costs. Failure costs include internal and external failures. An explanation of these costs are listed below: * Appraisal costs are costs that the company incurs to ensure quality or uncover defects. This includes but is not limited to costs such as testing equipment, inspection of materials, labs, quality audits, field-testing, and other inspection costs. * Prevention costs are the costs associated with preventing defects from occurring. This includes costs such as the designing a better quality product, increased maintenance on equipment, quality control procedures, training of employees, planning and administration procedures, working with vendors, and any extra time that is devoted to decreasing the probability of defective workmanship. * Defective parts or products by faulty services cause failure costs. * Internal failures are failures that are discovered during the production process or prior to the customer ever coming into contact with the product. There are many reasons the internal failures can occur including defective materials, incorrect methods or processing, or faulty equipment. * External failures are failures that are discovered after the customer has the product. This type of failure becomes very costly to the company due to increase costs of warranty work, liability, payments...
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...Supervisor FROM: SUBJECT: Three types of cost when quality considerations are made Given the highly competitive nature of today’s markets we as a company must provide high quality products to survive. Quality itself has become a major competitive factor and in many ways is a contributing factor in success or failure. The intent of this memo is to identify, explain and evaluate the three types of cost associated with quality. The three types of cost of quality are Prevention costs, Appraisal costs and Failure cost (Both internal and External) (Stevenson, 2009 pg. 421) The first type of cost is Prevention costs. Prevention refers to all costs associated with preventing the failure or non-conforming product or service occurring in the first place. Some specific examples of prevention costs are development of equipment, maintenance and calibration of inspection tools, audits of supplier materials, quality training of employees and the development and implementation of quality control processes. Although initial investments are required to implement prevention costs, they are often considered to be the least expensive cost of quality as many preventive costs and / or processes are repeatable with minimal reoccurring expense. The second type of cost is Appraisal cost. Throughout the process of a product or service being produced an inspection of that product or service must be performed in order to make sure that it is conforming to the quality standard set forth by the customer...
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...Re: WGU GHT1 Task 1 There are three types of costs when quality considerations are made, appraisal costs, prevention costs, and failure costs. Failure costs also include external failure and internal failure. A detailed explaination is included below: Appraisal costs are costs that the company incurs to ensure qaulity or uncover defects. This includes but is not limited to costs such as testing equipment, inspections of materials, labs, quality audits, field-testing, and other inspections costs. Prevention costs are the costs associatied with preventing defects from occurring. This includes costs such as designing a better quailty product, increased maintenance on equipment, quality control procedures, training of employees, planning and administration procedures, working with vendors, and any extra time that is used that is devoted to decreasing the probablilty of a defective workmanship. Failure costs are incurred bye defective parts or products or by faulty services. Internal failures are failures that are discovered during the production process or prior to the customer ever coming into direct contact with the product. There are many reasons that internal failures may occur which range from defective materials, incorrect methods or processing, or faulty equipment. External failures are failures that are discovered after the customer has the product. External failutres can become very costly to the company due to the costs of the warranty work, liability payments...
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...Pricing Method 3 major considerations in price setting : costs of production, distribution, communication set a floor to the price competitors’ prices and the price of substitutes provide an orienting point customers’ assessment of unique features establishes the price ceiling (plafond) Companies select a pricing method that includes 1 or more of these three considerations. We will examine 6 price-setting methods: Mark-up pricing, target-return pricing, perceived-value pricing, value pricing, going-rate pricing and auction-type pricing Mark-up pricing (ajout de marge sur coûts de production): Add a standard mark-up to the product’s costs. Unit cost = Variable cost + fixed cost / unit sales Mark-up price = unit cost/ (1- desired return on sales) Mark-ups are generally higher on seasonal items (to cover the risk of not selling), speciality items, slower-moving items, items with high storage (stockage) and handling (manipulation) costs, and demand-inelastic items, such as prescription drugs. This method works only if the marked-up price actually brings in the expected level of sales. Target-return pricing (objectif de rendement): The firm determines the price that would yield (rapporter) its target rate of return on investment. General Motors has priced its automobiles to achieve a 15-20% of return on investment (ROI). Public utilities need to make a fair ROI use this method. Target-return price = unit cost + ((desired return * invested...
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...relates to pricing its products or services. If consumers or organizational buyers perceive a price to be too high, they may purchase competitive brands or substitute products, leading to a loss of sales and profits for the firm. If the price is too low, sales might increase, but profitability may suffer. Thus, pricing decisions must be given careful consideration when a firm is introducing a new product or planning a short or long- term price change. Price and Pricing defined Price is the money, good or service exchanged for the ownership or use of a good or service. Examples of various names of price are tuition for education, rent for use of asset, interest for use of money and fare for use of taxi or a bus ride. Pricing may be defined as those activities involved in the determination of the price at which products that will be offered for sale considering the various objectives of the firm. Demand Influences on Pricing Decisions Demand influences on pricing decisions concern primarily the nature of the target market and expected reactions of consumers to a given price or change in price. Three primary considerations are demographic factors, psychological factors and price elasticity. 1. Demographic Factors In the initial selection of the target market that a firm intends to serve, a number of demographic factors are usually considered. Demographic factors that are particularly important for pricing decisions include the following: • Number of potential...
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...an analysis and evaluation of decisions taken by the Ojaman University management and the data presented by the heads of departments in the university. Methods and tools of operations management are used to analyse results and to assess decisions. Data analysis shows gaps in the information provided by the management team; some information was insufficient and some important information was neglected. The report describes improvement areas that require further investigation and remedial actions by the university management. The report also shows that some of the analysis conducted by the university management has limitations, mainly related to information about supply chain management, ticketing profits, additional overhead, consumables, quality standards, specifications and staff salaries. Contents Executive Summary .............................................................................................................. 2 Forecasting and Strategic Decisions ...................................................................................... 4 Quantitative Study ............................................................................................................. 4 Qualitative Study ............................................................................................................... 5 Demand Strategy...
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...Business Management Tasks Task 1: 304.1.3-04 2015 interoffice memorandum to: | Supervisor of XYZ Inc. | from: | | subject: | Quality consideration costs | date: | September 1, 2015 | | | | | Looking over our products, there are three types of costs to utilize when quality considerations are made. These consist of appraisal, prevention, and failure costs. To ensure and achieve good quality and fix any defect before our product reaches the consumer, we must consider appraisal costs. Appraisal costs include the measuring and evaluating of our products to assess compliance with standards. The costs of measuring and evaluating will come from inspections (which will also include the inspectors to conduct the inspections), and testing, which will include the equipment to conduct tests, labs, quality audits, and field testing. Importantly, appraisal costs have the potential to significantly lower any future failure costs that may be incurred. The trade-off for the cost of taking the time and effort to inspect, audit, and conduct field testing will give viable information for not only the company but to the consumer as well that we produce and believe in quality products; resulting in a higher return of quality. To prevent the possibility of defects occurring we must invest in prevention costs. These costs will ultimately aid in consumer satisfaction and decrease products returned on account of defective workmanship by paying an exuberant amount...
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...TABLE CONTENT INTRODUCTION 6 I. The element legal issues in business for a valid contract 7 1.1. The elements in formation of a Valid Contract 7 1.2. Types of Contract 12 1.3. Terms in contracts 17 II. The elements of a business contract in business situation 19 2.1. The elements of contract in the business case 19 2.2. The law on terms in the above two different contracts 20 2.3. The effect of different terms in the two contracts 22 CONCLUSION 24 REFERENT LISTS 25 APPENDIX 26 INTRODUCTION Currently, it is acceptable that most of company in the world also use the contact as a essential part in their business. The concept of contract nowadays is becoming more and more common in business environment. Contract is defined as an agreement which legally binds the parties (BPP Professional Education, 2004). However there are many types of contract between two businesses such as unilateral, bilateral, specialty, simple and standard form contract. Understanding deeply about deeply about value contract and variously type of contract will really useful for most of company in running their business as well as making it legally in their process of business. In this easy will explore the vital elements which necessary to establish a valid contract and provide some example to explore the term in contract such as condition, warranty innominate terms and exclusion clause. In addition, the essay also gives some case study to illustrate the important of...
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...Pacific Northwest Software Quality Conference, 2006 The Challenge of Productivity Measurement David N. Card Q-Labs, Inc dca@q-labs.com Biography- David N. Card is a fellow of Q-Labs, a subsidiary of Det Norske Veritas. Previous employers include the Software Productivity Consortium, Computer Sciences Corporation, Lockheed Martin, and Litton Bionetics. He spent one year as a Resident Affiliate at the Software Engineering Institute and seven years as a member of the NASA Software Engineering Laboratory research team. Mr. Card is the author of Measuring Software Design Quality (Prentice Hall, 1990), co-author of Practical Software Measurement (Addison Wesley, 2002), and co-editor ISO/IEC Standard 15939: Software Measurement Process (International Organization for Standardization, 2002). Mr. Card also serves as Editor-in-Chief of the Journal of Systems and Software. He is a Senior Member of the American Society for Quality. Abstract - In an era of tight budgets and increased outsourcing, getting a good measure of an organization’s productivity is a persistent management concern. Unfortunately, experience shows that no single productivity measure applies in all situations for all purposes. Instead, organizations must craft productivity measures appropriate to their processes and information needs. This article discusses the key considerations for defining an effective productivity measure. It also explores the relationship between quality and productivity. It does...
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...strategies (advertising, product development, pricing, etc.). To do so we rely on models of consumer decisions grounded in empirical observations. Field experience suggests that recognition-based heuristics help consumers to choose which brands to consider and purchase in frequently-purchased categories, but other heuristics are more relevant in durable-goods’ categories. Screening with recognition is a rational screening rule when advertising is a signal of product quality, when observing other consumers makes it easy to learn decision rules, and when firms react to engineering-design constraints by offering brands such that a high-level on one product feature means a low level on another product feature. Experience with applications and field experiments suggests four fruitful research topics: deciding how to decide (endogeneity), learning decision rules by self-reflection, risk reduction, and the difference between utility functions and decision rules. These challenges also pose methodological cautions. Keywords: Consideration Sets, Ecological Rationality, Evaluation Cost Model, Fast and Frugal Heuristics, Selfreflection Learning, Non-compensatory Decision Rules, Product Development, Recognition Heuristic. 1 A Marketing Science Perspective Marketing science provides a valuable perspective on whether and why consumers use recognition-based heuristics.1 This perspective is grounded by field experiments, the analysis of large data sets such as those obtained from supermarket-scanner...
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