Brief for Case Assignments | Online Homework Help

there are four parts you should write about

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  • What are the key managerial issues to address (choose the role (i.e. manager, VP, President, etc. based on guidance from the case study)
  • What is your specific recommendation (i.e. not the range of options – choose one)
  • Highlight the benefits to your recommendation(s)
  • Articulate any inherent risks associated with your recommendation note: This is intended to address risks associated with your recommendation – not general risks that impact the business

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The above template does NOT begin with an introduction, background, or summary of what is going on in the case

MARS, Inc. (D) 1  In January 2009, Tom Sosa, the purchasing manager, received a telephone call from  their Columbus, Indiana, diesel engine supplier informing him that effective June  they were no longer producing the D-342 diesel engines at the Columbus plant.  The D-342 engine sales were decreasing and would no longer be in their product  line. Tom was in shock. He was now forced to deal with the sole supplier of the D-  342 located in Portland, Oregon. The most recent price schedule submitted by the  Oregon engine supplier is given below:  Units per Order Unit Price  Less than or equal to 100 . . . . . . . . . . . . . . .$ 4,800  Between 100 and 200 . . . . . . . . . . . . . . . . . . 4,700  Greater than 200 . . . . . . . . . . . . . . . . . . . . . . 4,550  The prices had been basically the same as the Columbus supplier except that they are  F.O.B. Portland. The traffic department informed Tom that the transportation cost  per hundredweight is $10 for carload lots of 50,000 pounds. The less than carload rate  is $15 per hundredweight. The replenishment cycle normally takes one week.  BACKGROUND  Tom Sosa, the supply manager for MARS, Inc. was contemplating several significant  changes in the D-342 diesel engine market. Mr. Sosa was concerned because in its production of the 98-D loader, MARS used 10 diesel engines each working day of the  month. (MARS operated on a 20-day-per-month schedule.) Each engine weighs  500 pounds. Engine orders are currently placed every Monday morning. For the past  10 years, the D-342 engines had been produced in only two locations in the United  States, one in Columbus, Indiana, and the other in Portland, Oregon. Mr. Sosa felt fortunate that the Columbus producer was located approximately 30 miles from his facility. The Columbus supplier offered just-in-time delivery service at no charge to MARS.  MARS implemented lean manufacturing in 2002. The kanban-controlled JIT  production system was implemented based on the premise of minimizing workin-process inventories (waste) by reducing lot sizes in order to increase production  efficiency and product quality.  ACTION TAKEN BY TOM  Mr. Sosa compiled cost and warehouse capacity data on the D-342 engine from the  accounting department. See Table C17.1.  Mr. Sosa wonders what effects these new developments will have on his cost  structure.

Other cost

Cost of unloading engines into warehouse . . . . . . . . .$0.25 (per 100/wt)  Order processing cost per requisition . . . . . . . . . . . . .$100  Warehouse capacity . . . . . . . . . . . . . . . . . . . . . . . . . .200 units  Outside warehouse costs . . . . . . . . . . . . . . . . . . . . . .$39 per year per unit*  Expediting cost per requisition . . . . . . . . . . . . . . . . . .$50  Inventory carrying cost . . . . . . . . . . . . . . . . . . . . . . . .38%

 

 

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