Team Assignment 1 - Group 14
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CUNY Lehman College *
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Course
345
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
Pages
3
Uploaded by ElderNewtPerson533
Team Assignment 1
OPM3000
Name of students who contributed to this write-up.
1. Hafsah Zia
2. Marcus Rosario
3. Noemi Heredia
4. Laura Alvarez
5. Jaspal Singh
Consider the following change to Get-A-Dress (GAD): They eliminate cleaning of dresses at
InstaClean and Inspection at Designer's Den. With this change all the returning dresses directly go
to MaxiClean for cleaning and repair. MexiClean takes full responsibility of cleaning and repairing
dresses, and make them ready for renting to customers.
With this change assume that:
(1)
MaxiClean now takes 3 days for processing a dress, and charges $20 per dress (even those
which did not require repair). This is due to the fact that in addition to performing cleaning
and repair, MaxiClean must also perform additional tasks (sorting dresses, and entering the
information on returned dresses on GAD’s dress tracking system).
(2)
Since customers directly ship returning dresses to MaxiClean, there are no dresses at GAD
waiting to be send to MaxiClean. But dresses still wait for the same amount of time waiting
to be picked from MaxiClean.
(3)
You can assume they did
not
make changes considered in the case (i.e., ignore “Five-day
rentals” and “Improving Inspection”).
Question 1: Draw a revised Process Flow diagram for the company. (You can draw using word
document tools or paste a picture of handwritten diagram).
Question 2: Calculate updated inventory of dresses for the company. (Show you work to get full
credit).
Answer: 39,000 dresses
Question 3: Starting with the profit and loss (P&L) from the base case, provide a revised P&L
statement after the proposed change has been implemented.
Answer: Operating Profit = $2,000
Extra Credit Question: If the profit in Question 3 is still negative (i.e., they are still in loss), what
other reasonable changes they should consider to become profitable. (You must base your answer
on updated model with MaxiClean. You must provide quantitative analysis to earn credit).
The P&L in this case resulted in a net profit but in the case that they were at a loss, a
reasonable suggestion would be to change the ready-to-rent inventory policy of sending two
dresses per customer. Instead of sending two dresses per customer, send one dress per
customer as that would decrease the number of total dresses in circulation, resulting in 2000
less dresses in the total “I”. 2000 less dresses in the inventory to account for depreciation
would result in GAD saving $12,000 since (6*37,000 = $222,000), further increasing their
profit margin.
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