Wednesday, December 4, 2019
Capital Management and Corporate Performance â⬠MyAssignmenthelp
Question: Discuss about the Capital Management and Corporate Performance. Answer: Introduction: There are different performance measures that can be applied by the companies in order to maintain proper protection of the policies and procedures in the industry. The performance measures need to indicate the damages along with the reliability of the delivery as this will help them in maintaining and following the policies and procedures (Govindan, Soleimani Kannan, 2015). There are different performance measures that are followed by the respective company and this can help them in maintaining proper functioning of the organizations. Furthermore, the company needs to analyze the reliability in the delivery procedure, as this will help in understanding the issues in the reliability of the stock that needs to be handled properly. Furthermore, the three key supplier performance measures are as follows: Delivery reliability is the ratio that is generally used in order to evaluate the reliability of the delivery for a particular supplier (Ahi Searcy, 2013). This ratio is calculated by the respective organization named NTUC Fairprice Co-operative Ltd. by dividing the number of deliverables that are received on a particular date and the number of errors has to be divided by them in order to get the error free results (Heizer, 2016). The supermarket needs to analyze the delivery dates that has been missed by them as well as the calculation of the mistakes that has been committed by them while calculating the quantities and the number of deliverables as well (Brandenburg et al., 2014). Suppose NTUC Fairprice Co-operative Ltd. has total 200000 number of grocery items wherein 3000 stocks were not calculated and around 2500 stocks were wrongly written and there error in the calculation as well. There were different errors that have been made by the supermarket that has to be reduced by them in order to show reliability in delivery. There has been a unreconciled of 5500 units of stock that can have huge impact on the supermarket and this will be a huge loss to the company as well. From this example, it can be analyzed that proper and accurate information has to be generated by the officials of the company, as this will help in calculating proper units of stock that will be considered reliable in nature. This will help in enhancing the reliability and accuracy in the deliverable of the supermarket as well. Damage in transit is the insurance that can be claimed by the respective supermarket for the damages that has happened to the goods in transit (Waller Fawcett, 2013). The respective supermarket has to keep proper details of the goods and the services that will be coming in transit in order to understand the issues wherein they can claim the insurance (Stadtler, 2015). It can happen that the goods that has been ordered from the outlet by the supermarket has been lost or gone missing as well. Furthermore, the supermarket can claim the insurance for the goods that has been lost while in transit (Axster, 2015). The supermarket can claim for the damages that have been incurred by them and this is applicable for all the markets. If a product that have been ordered online and it is damaged in, nature, then depending upon the nature of damage whether minor or major damages, the respective supermarket can claim the damages incurred by them. Suppose when the respective company ordered a carton of different kind of sauces and after receiving the order, the officials of the company found that there were bottle of sauces that were broken and few were damaged as well. In this case, the respective company can claim the damages, as it was a major issue and this will affect the overall delivery reliability of the shop. Furthermore, the company needs to have proper guarantee on their different goods and services as in future when such mishap happens, then the company can claim damages from the wholesaler and this will help them in following proper policies and procedures. Inventory holding cost is the cost that is the sum of the money tied in the inventory along with the physical space that has been occupied by the inventories of the respective company (Baos-Caballero, Garca-Teruel Martnez-Solano, 2014). The rent, depreciation as well as insurance taxes are included in the physical space as the rent has to be paid by the company for the space that has been used by them in order to setup the factory. When the beginning inventory of the respective company is $30000 and then the company purchased $70000 of such inventory plus the actual beginning inventory $30000 and the purchased inventory costing to $70000 that will be equal to the $100000 that will be the cost availability of goods and services. The gross profit/loss will be calculated with proper percentage of the sales in order to calculate the gross profit. This will help in analyzing the rent and the other taxes that are applicable in the holding cost of the inventory as well. Conclusion Therefore, it can be concluded that the respective company needs to acquire such performance measures, as this will help them in following the rules and regulations regarding the system of inventory. The company needs to adopt one of the performance measures, as this will help them in maintaining proper inventory system in the organization. Furthermore, it can be recommended that inventory holding cost can be adopted by the respective company as this will help them in maintaining proper inventory cost and calculate the gross profit/loss that will be incurred by them in the present or the future as well. The company needs to analyze the inventory cost at the beginning along with the cost of inventory at the end of the year. This will help the respective company in analyzing the amount that will be incurred as the profit or loss by the entire company in maintaining inventory by calculating the rent, taxes as well as the depreciation that has been incurred by them. References Ahi, P., Searcy, C. (2013). A comparative literature analysis of definitions for green and sustainable supply chain management.Journal of Cleaner Production,52, 329-341. Axster, S. (2015).Inventory control(Vol. 225). Springer. Baos-Caballero, S., Garca-Teruel, P. J., Martnez-Solano, P. (2014). Working capital management, corporate performance, and financial constraints.Journal of Business Research,67(3), 332-338. Brandenburg, M., Govindan, K., Sarkis, J., Seuring, S. (2014). Quantitative models for sustainable supply chain management: Developments and directions.European Journal of Operational Research,233(2), 299-312. Govindan, K., Soleimani, H., Kannan, D. (2015). Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future.European Journal of Operational Research,240(3), 603-626. Heizer, J. (2016).Operations Management, 11/e. Pearson Education India. Stadtler, H. (2015). Supply chain management: An overview. InSupply chain management and advanced planning(pp. 3-28). Springer Berlin Heidelberg. Waller, M. A., Fawcett, S. E. (2013). Data science, predictive analytics, and big data: a revolution that will transform supply chain design and management.Journal of Business Logistics,34(2), 77-84.
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