This note focuses on the fundamentals of managing process flows. A process viewpoint is useful when the goal is to manage operational metrics such as capacity, cost, inventory, or responsiveness. The note examines Little's Law, the fundamental relationship among three important metrics: average inventory, average throughput time, and average throughput rate in any system that is in equilibrium.
{"title":"A Note on Managing Process Flows","authors":"Kamalini Ramdas","doi":"10.2139/ssrn.1282888","DOIUrl":"https://doi.org/10.2139/ssrn.1282888","url":null,"abstract":"This note focuses on the fundamentals of managing process flows. A process viewpoint is useful when the goal is to manage operational metrics such as capacity, cost, inventory, or responsiveness. The note examines Little's Law, the fundamental relationship among three important metrics: average inventory, average throughput time, and average throughput rate in any system that is in equilibrium.","PeriodicalId":409545,"journal":{"name":"EduRN: Economics Education (ERN) (Topic)","volume":"50 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125128006","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The Big Apple has been just the place for a direct home-delivery business like FreshDirect. Now the company wants to use the additional capacity in its meat-processing facility to expand into national competition. The description of the beef supply chain in the case helps students analyze the best way for FreshDirect to take on a "big boy" like Omaha Steaks and provide service to restaurants.
{"title":"Freshdirect: Expansion Strategy","authors":"Timothy M. Laseter, D. Chatterjee","doi":"10.2139/ssrn.911462","DOIUrl":"https://doi.org/10.2139/ssrn.911462","url":null,"abstract":"The Big Apple has been just the place for a direct home-delivery business like FreshDirect. Now the company wants to use the additional capacity in its meat-processing facility to expand into national competition. The description of the beef supply chain in the case helps students analyze the best way for FreshDirect to take on a \"big boy\" like Omaha Steaks and provide service to restaurants.","PeriodicalId":409545,"journal":{"name":"EduRN: Economics Education (ERN) (Topic)","volume":"52 11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128391217","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This case asks the student to compute Procter & Gamble's weighted average cost of capital to determine whether another company should enter the household-products market; the student must also compute Clorox's cost of capital as a check on the P&G estimate. The case emphasizes the conceptual as well as the mechanical aspects of computing cost of capital for a company with homogeneous business risk and stable capital structure. (The unabridged version of the case is UVA-F-0931.)
{"title":"Procter & Gamble: Cost of Capital (Abridged)","authors":"Kenneth M. Eades","doi":"10.2139/ssrn.909402","DOIUrl":"https://doi.org/10.2139/ssrn.909402","url":null,"abstract":"This case asks the student to compute Procter & Gamble's weighted average cost of capital to determine whether another company should enter the household-products market; the student must also compute Clorox's cost of capital as a check on the P&G estimate. The case emphasizes the conceptual as well as the mechanical aspects of computing cost of capital for a company with homogeneous business risk and stable capital structure. (The unabridged version of the case is UVA-F-0931.)","PeriodicalId":409545,"journal":{"name":"EduRN: Economics Education (ERN) (Topic)","volume":"66 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124649430","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Burger Bell is in the midst of discussions regarding the sponsorship by Burger Bell of the Cougars Cub Club. Negotiations are nearly complete, but eight issues remain before the contract can be signed. This case, together with its companion case, "Cougars Cub Club: Charlotte Cougars" (UVA-QA-0661), offers the opportunity for a one-on-one negotiation experience in which differences in priorities provide the basis for creating mutual value. In addition, there are issues that can be classified as congruent as well as those that are unavoidably distributive. As a result, debriefings can focus on both the creation and the claiming of value.
汉堡贝尔正在讨论由汉堡贝尔赞助美洲狮俱乐部的事宜。谈判已接近完成,但在签署合同之前仍有八个问题有待解决。这个案例,以及它的同伴案例“Cougars Cub Club: Charlotte Cougars”(UVA-QA-0661),提供了一对一谈判经验的机会,在这种经验中,优先级的差异为创造共同价值提供了基础。此外,还有一些问题可以被归类为一致的,以及那些不可避免的分配。因此,汇报可以同时关注价值的创造和价值的主张。
{"title":"Cougars Cub Club: Burger Bell","authors":"Sherwood C. Frey, Lauren Mishner","doi":"10.2139/ssrn.1284244","DOIUrl":"https://doi.org/10.2139/ssrn.1284244","url":null,"abstract":"Burger Bell is in the midst of discussions regarding the sponsorship by Burger Bell of the Cougars Cub Club. Negotiations are nearly complete, but eight issues remain before the contract can be signed. This case, together with its companion case, \"Cougars Cub Club: Charlotte Cougars\" (UVA-QA-0661), offers the opportunity for a one-on-one negotiation experience in which differences in priorities provide the basis for creating mutual value. In addition, there are issues that can be classified as congruent as well as those that are unavoidably distributive. As a result, debriefings can focus on both the creation and the claiming of value.","PeriodicalId":409545,"journal":{"name":"EduRN: Economics Education (ERN) (Topic)","volume":"36 6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124191552","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Select Collections sounds like the name of a fancy dress shop. Actually, in this case, it's a collection agency whose credit manager has asked a summer intern to apply her knowledge of regression analysis to forecast the amount the company will collect from 3,570 delinquent accounts. The intern must submit her forecasts in a contest with other interns to see whose model works the best. The case provides students with a modeling experience on a large data set. Instructors can form student teams and conduct their own forecasting contests.
{"title":"Select Collections, Inc","authors":"P. E. Pfeifer, Thomas A. Pomroy, W. Scherer","doi":"10.2139/ssrn.912015","DOIUrl":"https://doi.org/10.2139/ssrn.912015","url":null,"abstract":"Select Collections sounds like the name of a fancy dress shop. Actually, in this case, it's a collection agency whose credit manager has asked a summer intern to apply her knowledge of regression analysis to forecast the amount the company will collect from 3,570 delinquent accounts. The intern must submit her forecasts in a contest with other interns to see whose model works the best. The case provides students with a modeling experience on a large data set. Instructors can form student teams and conduct their own forecasting contests.","PeriodicalId":409545,"journal":{"name":"EduRN: Economics Education (ERN) (Topic)","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125452663","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This note offers a four-step framework for writing business letters, reports, and proposals. It advises the writer to consider purpose, audience, channel, and message structure when drafting managerial communications, and offers effective strategies for dealing with common communication challenges.
{"title":"Thinking Strategically About Communication","authors":"J. West","doi":"10.2139/ssrn.907750","DOIUrl":"https://doi.org/10.2139/ssrn.907750","url":null,"abstract":"This note offers a four-step framework for writing business letters, reports, and proposals. It advises the writer to consider purpose, audience, channel, and message structure when drafting managerial communications, and offers effective strategies for dealing with common communication challenges.","PeriodicalId":409545,"journal":{"name":"EduRN: Economics Education (ERN) (Topic)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130118627","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This note ensures that students review their own work, review their peer feedback, and discuss it with their peers before a conference with their instructor. The conference takes place with the instructor and each "working triad," a group of students assigned to review each other's work. The note supplements "Peer Feedback Assignment" (UVA-BC-0164), which is paired with "Narrative Presentation: Telling the Company Story" (UVA-BC-0163).
{"title":"Triad Conference with Instructor","authors":"Elizabeth Powell, James Rubin","doi":"10.2139/ssrn.907756","DOIUrl":"https://doi.org/10.2139/ssrn.907756","url":null,"abstract":"This note ensures that students review their own work, review their peer feedback, and discuss it with their peers before a conference with their instructor. The conference takes place with the instructor and each \"working triad,\" a group of students assigned to review each other's work. The note supplements \"Peer Feedback Assignment\" (UVA-BC-0164), which is paired with \"Narrative Presentation: Telling the Company Story\" (UVA-BC-0163).","PeriodicalId":409545,"journal":{"name":"EduRN: Economics Education (ERN) (Topic)","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126065307","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This note examines a firm's decisions about its cycle-stock ordering activities and the cost-element considerations behind those decisions. Students learn that, as materials flow from suppliers through a firm's operations to customers, the objective is to develop and implement a management system that can improve the cost effectiveness of the investments in inventory.
{"title":"Managing Inventories: What is the Appropriate Order Quantity?","authors":"J. R. Freeland, R. Landel","doi":"10.2139/ssrn.911434","DOIUrl":"https://doi.org/10.2139/ssrn.911434","url":null,"abstract":"This note examines a firm's decisions about its cycle-stock ordering activities and the cost-element considerations behind those decisions. Students learn that, as materials flow from suppliers through a firm's operations to customers, the objective is to develop and implement a management system that can improve the cost effectiveness of the investments in inventory.","PeriodicalId":409545,"journal":{"name":"EduRN: Economics Education (ERN) (Topic)","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122392269","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This case and its companion, the CIT Group (UVA-QA-0530) can be used as part of a module on the creation of mutual value. If the negotiators go beyond an arms-length approach to their relationship, they can create considerable value by relieving constraints and including additional issues. The cases can be used to illustrate the value of strategic alliances. Excerpt UVA-QA-0531 INTERNATIONAL AMERICAN BANK As Kelly Ebersol put down the phone, she relished the thought that on some days things seemed to go well and that an easy solution to a problem in one of her divisions might have just come her way. The price that her friend Jim Daley at the CIT Group had given her was a little high, but the leases that were being offered fit very nicely into the portfolio she was trying to enhance. As senior vice president, Capital Markets Group of International American Bank (IAB), Ebersol had among her responsibilities the Small Ticket division, a relatively new member of the Capital Markets Group. Small Ticket focused on equipment leases in the range of $ 25,000 to $ 200,000. Unfortunately, the division was struggling—its performance had been lagging since its inception, falling further and further behind plan. Volumes and revenues were below targets and, as a result, the division's base of fixed costs was not being sufficiently covered. Ebersol planned to improve the division's ratio of loan asset to fixed cost by putting more assets on the division's books. Given the time frame (quarterly financial results were due in just one month), there was no way to push the sales people to write more leases. In fact, they seemed to be at capacity already. She thought that the best solution would be to go out into the marketplace and purchase a pool of assets of sufficient quality to make a contribution to the division's bottom line. For the past several months, Ebersol had been discussing with Merriweather Financial, a small lender for small ticket assets, its acquisition by IAB. The unexpected offer from Daley may have just put the Merriweather deal on the back burner. The Equipment Leasing Industry The U.S. equipment leasing industry was enormous and diverse. In 1997, over 30% of the $ 566.2 billion in capital expenditures for productive assets was done through leasing. Assets ranging from airplanes valued in the hundreds of millions of dollars to industrial machinery valued in the low thousands made up the broad spectrum of leased items. Over 2,000 companies provided leasing services to American businesses, including banks, industrial finance companies, and independent companies. Profitability for the leasing industry was stable with an average return on assets of 1.5% and return on equity of 13.9%. In the world economy, the United States was the clear leader in both the supply of funds for leases and the demand for leasing funds, with a 40% share of the global leasing market. . . .
本案例及其同伴CIT Group (UVA-QA-0530)可以用作关于创造共同价值的模块的一部分。如果谈判者能够超越保持距离的方式来处理他们的关系,他们可以通过解除限制和包括额外的问题来创造相当大的价值。这些案例可以用来说明战略联盟的价值。凯利·埃伯索尔(Kelly Ebersol)放下电话时,她很高兴地想到,有些日子事情似乎进展顺利,她所在部门的一个问题可能会有一个简单的解决方案。她在CIT集团的朋友吉姆•戴利(Jim Daley)给她的价格有点高,但所提供的租约非常符合她试图提高的投资组合。作为国际美国银行(IAB)资本市场集团的高级副总裁,Ebersol的职责之一是小额债券部门,这是资本市场集团的一个相对较新的成员。Small Ticket专注于2.5万至20万美元的设备租赁。不幸的是,这个部门一直在苦苦挣扎——自成立以来,它的业绩一直落后于计划,越来越落后于计划。销量和收入低于目标,因此,该部门的固定成本基础没有得到充分覆盖。Ebersol计划通过将更多资产纳入该部门的账簿来改善该部门的贷款资产与固定成本的比率。考虑到时间框架(季度财务结果将在一个月内发布),没有办法迫使销售人员签订更多的租约。事实上,他们似乎已经满负荷了。她认为最好的解决方案是进入市场,购买足够质量的资产池,为部门的底线做出贡献。过去几个月,Ebersol一直在与小型票据资产贷款机构梅里韦瑟金融(Merriweather Financial)讨论被IAB收购的事宜。戴利出人意料的出价可能让梅里韦瑟的交易暂时搁置了。设备租赁业美国的设备租赁业规模庞大,种类繁多。1997年,在5662亿美元的生产性资产资本支出中,超过30%是通过租赁完成的。从价值数亿美元的飞机到价值数千美元的工业机械,这些资产构成了广泛的租赁项目。2000多家公司为美国企业提供租赁服务,包括银行、工业金融公司和独立公司。租赁行业盈利能力稳定,平均资产收益率为1.5%,净资产收益率为13.9%。在世界经济中,美国在租赁资金的供给和租赁资金的需求方面都是明显的领导者,在全球租赁市场中占有40%的份额. . . .
{"title":"International American Bank","authors":"Sherwood C. Frey, William Castleman","doi":"10.2139/ssrn.911999","DOIUrl":"https://doi.org/10.2139/ssrn.911999","url":null,"abstract":"This case and its companion, the CIT Group (UVA-QA-0530) can be used as part of a module on the creation of mutual value. If the negotiators go beyond an arms-length approach to their relationship, they can create considerable value by relieving constraints and including additional issues. The cases can be used to illustrate the value of strategic alliances. \u0000Excerpt \u0000UVA-QA-0531 \u0000INTERNATIONAL AMERICAN BANK \u0000As Kelly Ebersol put down the phone, she relished the thought that on some days things seemed to go well and that an easy solution to a problem in one of her divisions might have just come her way. The price that her friend Jim Daley at the CIT Group had given her was a little high, but the leases that were being offered fit very nicely into the portfolio she was trying to enhance. \u0000As senior vice president, Capital Markets Group of International American Bank (IAB), Ebersol had among her responsibilities the Small Ticket division, a relatively new member of the Capital Markets Group. Small Ticket focused on equipment leases in the range of $ 25,000 to $ 200,000. Unfortunately, the division was struggling—its performance had been lagging since its inception, falling further and further behind plan. Volumes and revenues were below targets and, as a result, the division's base of fixed costs was not being sufficiently covered. Ebersol planned to improve the division's ratio of loan asset to fixed cost by putting more assets on the division's books. Given the time frame (quarterly financial results were due in just one month), there was no way to push the sales people to write more leases. In fact, they seemed to be at capacity already. She thought that the best solution would be to go out into the marketplace and purchase a pool of assets of sufficient quality to make a contribution to the division's bottom line. For the past several months, Ebersol had been discussing with Merriweather Financial, a small lender for small ticket assets, its acquisition by IAB. The unexpected offer from Daley may have just put the Merriweather deal on the back burner. \u0000The Equipment Leasing Industry \u0000The U.S. equipment leasing industry was enormous and diverse. In 1997, over 30% of the $ 566.2 billion in capital expenditures for productive assets was done through leasing. Assets ranging from airplanes valued in the hundreds of millions of dollars to industrial machinery valued in the low thousands made up the broad spectrum of leased items. Over 2,000 companies provided leasing services to American businesses, including banks, industrial finance companies, and independent companies. Profitability for the leasing industry was stable with an average return on assets of 1.5% and return on equity of 13.9%. In the world economy, the United States was the clear leader in both the supply of funds for leases and the demand for leasing funds, with a 40% share of the global leasing market. \u0000. . .","PeriodicalId":409545,"journal":{"name":"EduRN: Economics Education (ERN) (Topic)","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122564902","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
R. Bruner, Dena Gollish, H. Clausen, Niels Koggersbol, Peter Christey
The general objective of this case is to exercise students' skills in estimating a weighted-average cost of capital and cost of equity. The specific need to estimate a segment WACC draws on students' abilities to critique different estimates of beta and to manipulate the levered-beta formulas. Thus the case provides a complete menu of capital cost estimation opportunities. Excerpt UVA-F-1017 Rev. Mar. 22, 2018 The Boeing 777 The Boeing 777 will set a new standard for aircraft around the world. With the introduction of the 777, we will be able to offer our airline customers a complete family of Boeing airplanes that meets any seating requirement from approximately 100 to 500 passengers. We believe the 777 will allow us to offer the right product for the changing market requirements of the 1990s and beyond. Shrontz says his mission is raising Boeing's return on equity from the recent average of about 12%. Although Boeing makes money while its main competitors don't, Shrontz isn't satisfied. “We've got to enhance our earnings,” he says. It takes a lot of courage to launch an industrial program in this uncertain economic environment. . . .
{"title":"The Boeing 777","authors":"R. Bruner, Dena Gollish, H. Clausen, Niels Koggersbol, Peter Christey","doi":"10.2139/ssrn.909092","DOIUrl":"https://doi.org/10.2139/ssrn.909092","url":null,"abstract":"The general objective of this case is to exercise students' skills in estimating a weighted-average cost of capital and cost of equity. The specific need to estimate a segment WACC draws on students' abilities to critique different estimates of beta and to manipulate the levered-beta formulas. Thus the case provides a complete menu of capital cost estimation opportunities. \u0000Excerpt \u0000UVA-F-1017 \u0000Rev. Mar. 22, 2018 \u0000The Boeing 777 \u0000The Boeing 777 will set a new standard for aircraft around the world. With the introduction of the 777, we will be able to offer our airline customers a complete family of Boeing airplanes that meets any seating requirement from approximately 100 to 500 passengers. We believe the 777 will allow us to offer the right product for the changing market requirements of the 1990s and beyond. \u0000Shrontz says his mission is raising Boeing's return on equity from the recent average of about 12%. Although Boeing makes money while its main competitors don't, Shrontz isn't satisfied. “We've got to enhance our earnings,” he says. \u0000It takes a lot of courage to launch an industrial program in this uncertain economic environment. \u0000. . .","PeriodicalId":409545,"journal":{"name":"EduRN: Economics Education (ERN) (Topic)","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2008-10-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122381441","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}