BA101, Week 4 Notes
BA101, Week 4 Notes BA 101
Popular in Intro To Business
Popular in Business
This 1 page Class Notes was uploaded by Emma Cochrane on Saturday January 30, 2016. The Class Notes belongs to BA 101 at University of Oregon taught by Engel S in Fall 2015. Since its upload, it has received 47 views. For similar materials see Intro To Business in Business at University of Oregon.
Reviews for BA101, Week 4 Notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 01/30/16
Performance Targets (for Foundation) 1. Manage production eﬃciently (contribution margin >30%) 2. Manage cash (don’t run out. Emergency loan = $0) 3. Manage inventory (inventory >0 and <60 days) 4. Create wealth; make proﬁt (net income > $0) 5. Increase owners’ wealth (stock price increase) Our customers: Target Market (high tech & low tech) What they want: Age, Price, Position, and Reliability Target market demand: 4 forecast methods (DCS method is the best to use in Foundation) Capacity: how many units the factory can produce Forecast + (forecast/12) = number of units available for sale add one extra month’s worth in forecast for Foundation inventory performance goal is >1 and <2 months of made available for sale 20% CM means 20% of sales ends up as contribution margin (CM% = CM/Sales) 2000 units for sale How many units can you sell and still meet inventory goal? 1999 What is the least you can sell and still meet the inventory goal? 1667 (2000/12 =166x2= 333 in inventory. then 2000-333= 1667) January 28 Is there enough capacity? Your total capacity represents what you are capable of producing in your ﬁrst shift. You have a second overtime shift and it is an expensive way to build products, but you can produce a total of twice the amount of the ﬁrst shift. Forecast + 1 month demand (inventory target) Add capacity: $6/unit ﬂoor space in Foundation Add automation: $4/unit level (automation level) you can’t have diﬀerent levels of automation within the factory – they all have to be the same level. (price x unit number x level) Increase the automation levels and labor declines by $1.12 per unit.
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'