Explain how the SPM can be used to make effective logistics decisions.

Explain how the SPM can be used to make effective logistics decisions.

Use APA Format

Option 1

You have been hired as the new logistics manager for the Jones Company. Executive management wants to understand where the company performance stands in terms of organization financial results. They come to you to figure out the ROA so they can understand how effective the logistics organization is in using the assets to generate profit. You have to present your report to the executive management team by the end of your third week in the company. Your report will address what the key components are of a SPM and you will create a SPM based on the below numbers.

Objectives:

To understand what a SPM is and what are the components of the SPM.

Be able to create a SPM based on a provide income statement and balance sheet.

Explain how the SPM can be used to make effective logistics decisions.

Instructions: Using the reading provided concerning Strategic Profit Models and the supplemental material, answer the below question and complete a Strategic Profit Model for Jones Company. Cite sources and provide a reference page as needed.

https://www.boundless.com/finance/textbooks/boundless-finance-textbook/analyzing-financial-statements-3/the-dupont-equation-roe-roa-and-growth-44/the-dupont-equation-220-3900/

What are the key components of the Strategic Profit Model? How can it be used to examine the effect of logistics decisions?

Use the 2012 income statement and balance sheet below to complete a Strategic Profit Model for JonesCompany.

Income Statement 2012 Jones Company
Sales   $200,000
Cost of Goods Sold   $130,000
Gross Margin   $ 70,000
Transportation Cost $6,000  
Warehousing Cost $3,000  
Inventory Carrying Cost $1,000  
Other Operating Costs $30,000  
Total Operating Costs $40,000  
Earnings before interest and taxes   $30,000
Interest   $11,000
Taxes   $6,000
Net Income   $13,000
Balance Sheet 2012    
Assets    
Cash   $20,000
Accounts Receivable   $35,000
Inventory   $15,000
Total Current Assets   $70,000
Net Fixed Assets   $80,000
Total Assets   $150,000
Liabilities    
Current Liabilities   $60,000
Long-Term Debt   $30,000
Total Liabilities   $90,000
Shareholder’s Equity   $60,000
Total Liabilities and Equity   $150,000

 

Option 2

You have been hired as the new logistics manager for the Jones Company. The previous manager left you with three major issues that you need to tackle on day one. First, the stock clerks who are primarily temporary employees and work part time have an issue with productivity. Their overall productivity ratings have decreased with and it has been reported that most of them spend their time on the internet, chatting at the cooler, or playing games in the breakroom. Secondly, there is one employee by the name of John Smith, in which you are receiving several complaints concerning his attitude with the other employees. He felt he would have made a better logistics manager than you, has been there for 15 years and knows are the in’s and out’s of the logistics department. However, his productivity has slipped since you have come on board. It is not going to be easy to replace him, because he has so much knowledge and is a union employee. Finally, there is evidence of pilferage, or employee theft of the inventory in the department. You need to come up with a plan for dealing with the pilferage in the company.

Executive management wants a full report of the issues, and your plans for rectifying the three top issues within your department. To generate a detailed 2-3 page report to address these issues you must do the following:

Objectives:

  1. Explain what is productivity and how can it be increased, discuss the causes and possible solutions for the productivity issues within your organization.
  2. Summarize the personnel issue and come up with a way to rectify the situation considering the pros and cons of various alternative actions.
  3. Develop a companywide policy against pilferage within the organization, possibly based on “zero tolerance”.  Explain the probable causes the proposed solutions.

Instructions: Develop a 2-3 page report to be submitted to executive management by the end of your third week that addresses all the components of the above objectives. Cite sources and provide a reference page as needed

Option 3

 

You have been hired as the new logistics manager for the Jones Company. Jones Company is a retailer of state of the art cell phones. Executive management has called you into the office because they have a major issue with reverse logistics of returned products. It appears that more and more products are being returned and they did not have the resources to handle this workload. They want you to come up with a in house reverse logistics plan for the company that addresses several questions:

 

  1. How can we determine what is the cause for the increase in returns?
  2. It costs $25 per unit to ship the phones back to the manufacturer, while HR has indicated that it would cost $25 per hour to hire an in house repair person at 8 hours a day. Would it be more cost effective to send the units back for repair or have them repaired on site and why?
  3. Should we offer an incentive, warranty, replacement, credit or buy back the unit from the customer and why?
  4. What should we do about inventory and warehouse expenses?
  5. Develop a brief warranty and return policy for the customer.
  6. How can we insure no loss of customer satisfaction or negative reviews?

 

Objectives:

 

  1. Understand what reverse logistics is and what the implications of reverse logistics on various processes are.
  2. How does reverse logistics impact customer satisfaction
  3. What are some ways that companies can address revers logistics efficiently?

 

Instructions:

 

Create a 2-3 page report to give to management that addresses all the questions above. Use the article below as a guide in creating your recommendations. The report is due the end of your third week on the job. Cite sources and provide a reference page as needed.

 

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 Option 4

 

You have been hired as the new logistics manager for the Jones Company. Jones Company has been getting a great deal of heat from various organizations because they have not shown themselves as being socially responsible in terms of their logistics departments. The issues are as follows:

 

  1. The company uses high-grade plastic to package their products and has increased the disposal of plastic products in landfills across the nation. These disposals have also increased the death of birds who choke on the exposed plastic packaging.
  2. Employees who get hurt on the job are immediately demoted to a lower position on the floor.
  3. The company will only use suppliers whose owners are red headed.
  4. The company imports highly hazardous chemicals to manufacture their battery packs; however, they do not adhere to the biohazard rules for transporting highly sensitive chemicals and handling dangerous chemicals.

 

These are social responsible issues surrounding the dimensions of environment, diversity, safety and human rights.

 

The executive management does not understand the implications of these decisions and so you are tasked to by your manager to research other companies that ran into similar issues, and explain in a briefing what were the findings and the consequences to these companies and why they had to deal with the after effects of their decisions. Then you are to write a brief public relations and marketing communication for the public that will highlight changes that the Jones Company will take to deal with these issues in the near future.

 

 

 

Objectives:

 

  1. Understand the concept of logistics social responsibility and the dimensions associated with them.
  2. Understand the implications behind not adhere to social responsible actions.
  3. Understand how companies can benefit from being socially responsible

 

Instructions:

 

Look for articles about other companies that faced these similar social responsibility issues and report on the outcomes of those reports in a 2-3 page summary of each. Your goal is to convince your executive management that they need to put in place corrective actions ASAP to address the company’s social responsibility issues. Then develop a brief marketing publication that will address what the Jones Company will do to turn around their negative standings with the public. Cite sources and provide a reference page as needed.

tp://www.reverselogisticstrends.com/rlmagazine/edition08p18.php

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