SamSuk is an international brand of small household appliances and it produces electric blenders. Currently they are
Question:
SamSuk is an international brand of small household appliances and it produces electric blenders. Currently they are reviewing which of the following two blenders is more environmentally friendly. The details are shown in the table below:
Blender A
Part Name: | Resale Revenue per unit | Recycling Revenue per unit | Processing Cost per unit | Disposal Cost per unit |
Main Motor base | $3.55 | $5.25 | $6.28 | 0 |
Food cup | 1.35 | 2.97 | 1.23 | 0.63 |
Digital timer | 0.4 | 0 | 1.62 | 1.5 |
Rotating blade | 2.7 | 2.35 | 2.2 | 1.45 |
Blender B
Part Name: | Resale Revenue per unit | Recycling Revenue per unit | Processing Cost per unit | Disposal Cost per unit |
Main Motor base | $4.15 | $4.45 | $5.12 | 0 |
Food cup | 1.38 | 3.1 | 0.98 | 0.97 |
Rotating blade | 2.3 | 2.9 | 2.25 | 1.45 |
a) Calculate the revenue retrieval for both blenders A and B, and determine the more environmentally friendly blender based on the revenue retrieval value. (4 marks)
b) Which blender design is better selection if SamSuk decided to add a digital timer to the Blender B with the digital timer revenue and cost that are the same as Blender A? (Show your calculation steps) (3 marks)
c) The operation manager of SamSuk has identified quality control activities as below. Put them in correct four cost of quality categories and calculate the amount of each. (4 marks)
Quality control activities | Activity Cost ($) |
Warranty claim | 25,000 |
Correcting shipping errors | 15,000 |
Preventive equipment maintenances | 4,000 |
Disposing of scrap | 9,500 |
Final inspection | 8,000 |
Employee training | 5,000 |
Processing customer returns | 9,000 |
Inspection incoming material | 6,000 |
d) If you were the operation manager of SamSuk, based on the findings from part c above, comment on the findings and give your suggestions for more effective quality cost management. (4 marks)
e) In these days, the contemporary operations are relying more and more on advanced technology in order to maintain competitive in the market.
For each of the following service industries, describe one technology application/ system and the benefit of adopting such (1 mark each, Total 5 marks).
i) Fast Food
ii) Hospital
iii) Airport/ Airlines
iv) Education
v) Warehousing
Strategic Management and Competitive Advantage Concepts and Cases
ISBN: 978-0133127409
5th edition
Authors: Jay B. Barney, William Hesterly