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:
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:
Objectives:
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:
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:
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