CRU Computer Rental Case Solutions Solution 1 TABLE 1: CRU FLOWS | Customer | Receiving | Status 24 | Status 40 | Stored Orders | Orders at Suppliers | Status 41 | Status 42 | Status 20 | | | | | | | | | | | Throughput(Units/Week) | 1000 | 1000 | 1000*.70=700 | 1000*.30+ .15*700= 405 | 405 | 405 | 405 | 405 | 1000 | | | | | | | | | | | Inventory(Units) | 8000= 8*1000 | 500 | 1500 | 1000 | 500 | 405= 405*1 | 500+405 = 905 | 500 | 2000=2*1000 | | | | | |
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1. What was the utilization achieved by CRU in 1996? Utilization = Inventory on rent / Inventory owned Inventory on rent = 1‚000 units per week x 8 weeks = 8‚000 Inventory owned = 8‚000 + 500 + 1‚500 + 1‚000 + 905 + 500 + 2‚000 = 14‚405 Utilization = 55% (8‚000 / 14‚405) Customer Receiving Status 24 Status 40 Status 41 Parts (order forms in Que) Supplier (waiting for parts) Status 42 Status 20 Throughput (units/week) 1000 1000 700 405 405 405 405 405 1000 (1000 x 70%) [(1000
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process flow chart (process map) clearly identifying activities‚ routes and other data in the case. Bring a copy of your flow chart to class. [pic] Throughput‚ inventory and cycle time measures for relevant process steps located in Exhibit B. 2. What do you think about the decision to launch a sales drive in 1997? What actions would you suggest that Richard focus on to improve performance at CRU? Give a concrete plan with anticipated benefits. The sales drive plan failed to take into account
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Answers to Old Midterm Questions Question 1 These questions deal with Mitchell Gold Co. as described in the articles “A Maverick of Sofas Rearranges the Furniture Business” and “Gold’s New Rush”. [1.a] Using the dimensions we discussed in class‚ how would you describe Mitchell Gold Co.’s strategic position? Mitchell Gold competes by offering high quality products at a lower price than most makers of similar quality furniture. They offer limited variety in comparison to other makers‚ which
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Status 20 Parts Supplier I (unit) 8000 500 1500 1000 500 405 500 2000 R (unit/week) 1000 1000 700 405 405 405 405 1000 T (week) 8 0.5 2.14 2.47 1.23 1 1.23 2 What was The Utilization Achieved by CRU in 1996? Utilization = (Inventoy on Rent)/(Total inventory by CRU) =8‚000/14‚405= 55.54% For 1996‚ Calculate The Average Time Spent by a Unit in Each Buffer. 1996 Customer Receiving Status 24 Status 40 Status 41 Status 42 Status 20 Parts Supplier I (unit) 8000
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Kellogg Graduate School of Management Northwestern University Operations MORE SAMPLE MIDTERM EXAM QUESTIONS: SOLUTIONS [1] Consider the life cycle of a product from introduction to maturity to decline. What kind of process (job shop‚ batch process‚ or line flow) would be appropriate at each stage and why? At the introduction phase‚ product volumes are small and design changes frequent. Thus production in a job shop setup is likely to most appropriate. At maturity volumes will be large
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Case: CRU Computer Rental CRU Computer Rentals is a national computer rental company that has seen rapid growth since its inception in 1990. The company purchases computers‚ printers‚ monitors‚ and other peripherals and rents them out both for the long term and short term. CRU’s sales have begun to increase from the previous quarter‚ but profitability continued to decline. Although revenue was increasing‚ the decline in profit warranted further investigation into the root problem causing this occurrence
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The focus of the CRU Computer Rentals case is the declining profitability of the business. Richard Sarkis‚ the company’s general manager‚ first noticed a problem at the beginning of this year when demand fell from 1‚000 rentals per week to only 600 units per week‚ a 40% decline. Obviously‚ less demand means less revenue and profit unless action is taken. His challenge was to find a way to keep the company profitable despite the changing environment. With this in mind‚ Mr. Sarkis developed a marketing
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people worldwide find means to have an easy and fast communication‚ research for the study purposes become convenient and serve as a good source of income. Those benefits from the internet are very productive to man. They put up different computer rental shops‚ as well as posh internet café‚ that increase the competition in their own field. And one of their main concerns is to improve their system to have fast and manageable transaction in their business. That is why we have conducted this
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The Computer Rental/Services Industry is a good investment for it has a good range of target market specially teens. According to my observations the internet café is one of the best businesses in the country‚ because it doesn’t require sizeable investments and can quickly be able to recover its capital. Based on what I have read on the feasibility‚ I think and agreed to myself that the proposed JL’S Internet Café will be successful due to its location‚ since they would build it in front of
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