The manager at AnyLogo is considering the purchase of high-speed embroidery machines that will allow them to embroider on demand. In this case the apparel will be made in Sri Lanka without any logo and the logo embroidery is postponed and will be done in the United States on demand. This will raise the cost per unit to $15. However, AnyLogo will not have any holiday or company-specific apparel to be disposed at the end of the season. The leftover apparel without logos can be sold for $5 a unit to retailers. The cost of shipping adds $4 to the cost of any apparel left over after the holiday season. (Note there are none left to donate to charity now.) With all other information as in the above problem: a. What quantity should they order if they use delayed differentiation? b. What will the impact of delayed differentiation be on inventories?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
PLEASE NOTE: I only need the answer for Part 2. I posted Part 1 for your reference only.
Part 1 - NO Answer Needed.
- AnyLogo supplies firms with apparel containing their logo to be used for promotional purposes. Currently, AnyLogo has four major customers - IBM, AT&T, HP, and Cisco. During the holiday season, the logos are adorned with a Christmas motif. Demand from each firm for apparel with the Christmas motif is
normally distributed as shown below. AnyLogo currently produces all the apparel including the Logo embroidery in Sri Lanka in advance of the holiday season. Each unit costs $10 and is sold by AnyLogo for $40. Any leftover inventory at the end of the holiday season is essentially worthless and is donated by AnyLogo to charity. However, the donation costs AnyLogo $3 per unit to ship to the charity.
What production quantities do you recommend for AnyLogo? - Answer not needed. Please answer Part 2 only.
|
IBM |
AT&T |
HP |
Cisco |
|
|
Mean of demand |
4,000 |
6,000 |
3,000 |
2,000 |
|
Standard deviation |
750 |
1,500 |
250 |
500 |
Part 2: Please answer this part.
- The manager at AnyLogo is considering the purchase of high-speed embroidery machines that will allow them to embroider on demand. In this case the apparel will be made in Sri Lanka without any logo and the logo embroidery is postponed and will be done in the United States on demand. This will raise the cost per unit to $15. However, AnyLogo will not have any holiday or company-specific apparel to be disposed at the end of the season. The leftover apparel without logos can be sold for $5 a unit to retailers. The cost of shipping adds $4 to the cost of any apparel left over after the holiday season. (Note there are none left to donate to charity now.) With all other information as in the above problem:
a. What quantity should they order if they use delayed differentiation?
b. What will the impact of delayed differentiation be on inventories?
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