Decision at Applied Office Product
Company 's Background
In 1992, Allied Office Products was a corporation with annual sales of $900 million. It deals with manufacturing of following forms : * Business Forms * Specialty paper product such as writing paper, envelopes, note cards, and greeting cards
In 1988, as form manufacturing business matures, Allied Office Product had expanded into business form inventory management system and put a step ahead to attain a competitive advantage by embarking on a campaign that enrolled its corporate clients in program called "Total forms Control".
Starting with the mission of - "We know what you need…the right product at the right place at the right time”, Allied emphasis on the importance of
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The Current cost is $761,000. The cost driver will be Number of Requisition Lines according to Rick Fosmire.
Basic Warehouse Stock Delivery charge= Current Cost/Number of Requisitions Lines= 761,000/775,000 = $0.98/requisition line. * Pick Pack: Process of selecting cartons and partial cartons to meet customer is done by manual picking and packing. Currently 90% of all orders are pick pack. So the number of number of requisition lines that are pick packed is 775,000*90%=697,500. The Current cost is $734,000. The cost driver will be Number of Requisition Lines that are pick packed (i.e. 90%) according to Rick Fosmire.
Pick Pack charges = Current Cost/ Number of Requisition Lines that are pick packed = 734,000/697,500 = $1.05/requisition line. * Data Entry: Entry of customer order information into computer system. Current cost is $612,000. It is a labor intensive with all manual entry in the computer system. The cost driver will be Number of Requisition Lines (i.e. 310,000*2.5 = 775,000) because, according to Hazel Nutley, the only thing which matter is how many lines she has to enter and requisitions are submitted line by line.
Data Entry Charges = Current Cost/ Number of Requisition = 612,000/775,000= $0.79/requisition line. * Desktop Delivery: Specialized delivery of orders to specific areas of customer’s location. Current cost is $250,000. It is a premium service with no additional fees. Average time to complete the
1. Total Forms Control (TFC) fit well into Western’s strategy when it was initially implemented. It allowed Western to offer these “value-added” services to their customers that most of their competitors did not. Total Forms Control should have increased Western’s margins and helped them to increase the loyalty and number of customers. TFC was not performing up to expectations. It had become an increasingly time consuming process and profits from TFC had been consistently declining over the past several years, projected to drop a total of 14% in only two years.
1.4.2 “Solutions R Us” Technical Consultants have provided a quote of $105,000. The system will last for 10 years. Their quote includes technical support. The quote includes all the required hardware, however, the hardware must be checked and serviced by them, twice a year at a cost of $500 per
Consider a product line with 50% gross margins (after subtracting volume-related expenses from prices). The cost for handling an individual customer order is SEK 750, and the extra cost to handle a production order for a non-stocked item is SEK 2,250.
Answer. The firm will adopt the new technique because the total cost drops to $32.
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During our military careers we are faced with many different situations and problems. We will need to present solutions to these situations and problems. The Army has four types of military briefings for us to choose from to effectively communicate our solutions. These four military briefings are decision briefings, information briefings, mission briefings and staff briefings. Each situation will have a factor in determining which type of military briefing is needed. To know which military briefing is to be used, we must understand the purpose of each briefing. This paper will give a narrative on each of the four military briefs and the steps involved for the presentation of each brief. I will begin with decision briefings. Before I can begin with decision briefings, I must give a brief discussion on the Army’s problem solving process.
Consider a product line with 50% gross margins (after subtracting volume-related expenses from prices). The cost for handling an individual customer order is SEK 750, and the extra cost to handle a production order for a non-stocked item is SEK 2,250.
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