Happy Chips, Case 10

Topics: Cost, Costs, Decision making Pages: 4 (1368 words) Published: October 10, 2012
Transportation Economics/TLMT312
American Military University
September 30, 2012

The supply and management of a company have various difficulties in trying to manipulate the logistics of supply and making analysis of the whole performance of the supplying team. These issues apparently result from low surge and have had great inconveniences to stock and management. The reasons for these intensive difficulties are a result of malfunctioning of one group or department and thus disrupting the paths of supply. Prior to lack of frequency in stock-outs, poor customer response and high prices on the products of the supplying enterprise have the greatest impact then due customers. This results in reduction in profits and furthers the customer – supplier relationship. The operations of the supplying company have bigger effects on the customers unlike any other department involved in stock supply. This is well described from the logistics created by Harold, the director of Logistics explaining what Buy 4 Less had to go through due to malfunctioning of the Happy Chips’ management.

The increased complexity in the supply operations make the methodologies that Buy 4 Less suggested to Happy Chips to implement so that both parties could benefit and improve the understanding of the results of poor management. The factors that led to failure in the various sections mentioned above by Buy 4 Less were associated to activities in the product’s delay leading to low costs of income. The problems addressed by Buy 4 Less and other customers of Happy Chips require a complex analysis of set activities or else a high cost in resources production but a reduced cost in selling the supplies. This is unfavorably good for Happy Chips management as they count it as a bigger loss. The activity based costing gives meaningful information about the driven cost from Happy Chips that Carter could have used to track down and establish a...
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