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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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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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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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 the economics of their CRUs business radically reducing profits. As average rental weeks decreased (see Exhibit A)‚ the incremental inventory required
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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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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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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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last term’s work 2 Description of a computer and the monitor. 3 Features of a computer 4 Importance of a computer as a tool for processing data 5 The System Unit 6 The keyboard and its sections 7 Word Processing 8 Data Processing 9 Stages of Data Processing 10 Information Evolution 11 Revision 12 Examination JS 2 WKS TOPICS 1 ICT as a transformation tool 2 Benefits and disadvantages of ICT 3 ICT Gadgets 4 Computer Programming language 5 Computer Programming Language 6 BASIC Programming
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Computers have become such indispensable devices in the modern era that we cannot imagine life without computers. However‚ there have been different ideas on the benefits of computers. In my opinion‚ computers do more good than harm because they can make life easier and also can help our work become more systematically and productively. Firstly‚ computers give many advantages as they can make life easier. As a student‚ many works must be done by using computer such as assignment and presentation
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Negetive Aspects of computer Children are exposed to computers at an early age and some even children know more than their parents about computers. However‚ regular computer use can have some negative effects on children‚ especially those that frequently use computers for extended periods of time. Some children who frequently use the computer may be at risk for developing vision problems. According to the American Optometric Association‚ children can be even more susceptible than adult
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