purch joined 2

6.

Reducing Cost in the Supply Chain

Cost is one of the critical factors in the success of a supply chain. While firms pay attention to many other factors, the cost is never far from the forefront of all analysis. Consequently, organizations have developed many ways to not only measure, but also reduce costs in their supply chains.

For this Discussion, research news articles and provide an example where an organization was able to reduce costs in their supply chain through the use of a specific methodology. Examples where costs were reduced through general improvements and not through a methodology do not fit. An analogous example may be companies improving their quality through TQM or Six Sigma. Include the following information:

1. What is the name of the company? Provide some details on what they do, their competition and their supply chain.

2. How were they able to reduce costs in their supply chain? Remember, this needs to be more than simply people doing better- you are looking to see how they applied a particular analysis or improvement methodology.

3. Do you think others can use the same method to improve their supply chain? Explain what would be required.

Reading

ANALYTICAL METHODS IN SUPPLY MANAGEMENT

Evaluation of a supplier’s actual cost to provide the product or service is critical, but also very difficult to determine. Unit 6 presents a discussion of price and cost fundamentals along with a number of innovative price and cost management tools that can be applied. Also covered are supplemental tools such as value engineering and project management concepts

Journal

Based on your readings in this unit, answer the following questions, with explanations (do not simply name concepts and move on):

1) Among the concepts you have learned, which do you think is most useful to you or your organization?

2) Which concept(s) caused the most confusion in this unit?

3) Which concept(s) did you wish went into further detail, either because you are interested or because it’s too complex for the coverage it received?

Unit 5 Assignment: Developing a Global Network

You will focus on building a global supply network. While the advantages are numerous to using suppliers from all over the world, additional challenges arise due to differences in various countries. The culture element is a critical factor in the formation of a successful global supply network.

In this assignment, you will research articles to learn what potential disasters await due to cultural issues and analyze methods for dealing with these potential disasters.

This assignment will assess your knowledge based on the following Outcomes:

: Analyze methods for developing a global network.

GEL-4.03: Understand patterns of human behavior based upon real world observation.

Instructions

Address the following in your paper:

1. People in different countries or cultures display different patterns of behavior. In order to be successful in creating a global network, companies must be able to observe and understand these patterns, then adjust to them. Research news articles and provide one example where a specific pattern of behavior has created significant difficulty for a company using suppliers from another country. Clearly state what the cultural issue was, how it was observed (or should have been observed) and to what difficulties it has led.

2. Exhibit 10.10 in your book discusses “Factors Driving Successful Global Sourcing Programs.” Would any of these factors have helped prevent the issue from becoming a problem? If yes, explain how. If not, recommend a method that a company can use to ensure this issue does not result in a problem in the future.

3. One way to avoid problems with suppliers is to develop them through a long-term relationship. This is not always possible, however. “Barriers to supplier development” are described starting on page 343. Analyze the barriers listed and explain which one may have been the most relevant one in this case. What could have been done to remove this barrier?

Respond using the critical elements below:

· Compose your original response in Standard English, paying special attention to grammar, style, and mechanics.

· Respond to the questions in a thorough manner, following the prescribed format and citing your resources using the current APA formatting guidelines.

· Ensure that your viewpoint and purpose are clearly stated.

· Demonstrate logical and appropriate transitions from one idea to another.

· Your paper should be highly organized, logical, and focused.

6.

Topic: 
Is Positive Beta Better Than Negative Beta?

A beta factor represents risk in a financial instrument or commodity. The risk involved here is volatility risk, which will give you an understanding of how the security is expected to move in the market. Understanding volatility can help you build portfolios that will meet investment goals.

· Explain the reasons for changes in beta and explain how one would use positive and negative betas to build a portfolio. Be sure to reference volatility.

· Please provide an example of negative beta.

7.

Topic: Treasury Bills Versus Treasury Notes and Changes in Interest Rates

The daily market transactions for Treasury instruments are in the billions. The current average daily volume of “Treasuries” is approximately $150 billion. Like you, corporations may have extra cash to invest.

In this case, you, as a finance manager, are considering investing $50,000 in either a Treasury bill that you will renew every 6 months or in a 5-year Treasury note that you will hold until maturity. Current interest rates are expected to increase.

Would you invest in the Treasury bill or Treasury note? Remember that the primary duty of company management is to increase shareholder value. Will either of these investments accomplish this goal? Please show your math supporting your decision here.

8.

Topic: Presentation to the Board of Directors, the Pros and Cons of Debt Financing

The calculation of the after-tax cost of debt versus the cost of equity plays a major role in managing capital costs for a company. Knowing the difference between the cost of debt and the cost of equity would determine how you would manage the cost of capital within a company.

You are the CFO of a company that is considering issuing its first bond issue to the public.

You have been asked to present a few matters related to debt (bond) financing to the board of directors.

Please briefly explain to the board: (1) the usual collateral position of bondholders (lenders) versus equity investors, (2) why common stockholders can demand a higher rate of return than lenders, and (3) why you would suggest debt (or equity) financing.