Operations scheduling and sequencing Custom Essay
Unit: Operations Scheduling
10–12 slides with 100–200 words of speaker’s notes per slide
Both the operations manager and the warehouse manager have been impressed with your argument in making a case of supply chain management and quality management within the company. The operations manager in your department wants you to conduct a formal presentation to him and the rest of the floor staff to highlight the benefits of supply chain management. He has over 30 years of operational management experience with the company, and he is skeptical of any change. He has never used any type of supply chain management techniques or tools, but found your discussion on supply chain interesting. The warehouse manager has also expressed interest in having you conduct a similar presentation with a focus on quality management for his department and staff member at a later date. This is your opportunity to really pitch the advantages of implementing supply chain management and for designing a quality assurance process for these two departments within your company.
Develop a compelling presentation to the operations manager that will explore the benefits of implementing supply chain management on his floor.
- Use the following format:
- 10–12 slides
- Eye-catching graphics, clip art, charts, and models
- A minimum of 100–200 words of speaker’s notes per slide
- APA, 6th edition format for all citations and references
- Content should include the following:
- Create 2–3 slides covering 1-2 basic terms, 1–2 concepts, and 2–3 principles of supply chain management.
- Create 2–3 slides providing examples of 3 supply chain tools and techniques and explanations of how they are used.
- Cite and explain 3 examples of how supply chain management has helped a company to improve efficiency and effectiveness.
- Citations and references must be given for all content sources.
Cost of Capital
Word document of 700–1,000 words with attached Excel Spreadsheet showing calculations
Your next assignment as a financial management intern is to apply the knowledge that you acquired while engaging in the cost of capital discussion that you had with your colleagues. In this task, you will be calculating the weighted cost of capital for a firm using the book value of the components and the concepts presented in this phase.
Using the most current annual financial statements from the company you analyzed in Phase 1, determine the percentage of the firm’s assets that are currently be financed with debt (total liabilities), preferred stock, and common stock (common equity). It is very possible that your firm will have very little or no preferred stock, so in this class, the percent would be “zero.” Your ratios should add up to 100%. You will also need to calculate the firm’s average tax rate using the income tax expense divided by the firm’s income before taxes. Use the following tables:
|Company||Total Assets||Total Liabilities||Total Preferred Stock||Total Common Equity|
|% of Assets|
|Company||Income before Tax||Income Tax Expense||Average Tax Rate (%)|
The first component to determine is the cost of debt. You mentor suggests using the Web site that you used in the previous Phase to find the pretax yield-to-maturity of a bond with at least 5 years left before maturity. Using the following table, calculate the firm’s after-tax cost of debt:
|Yield to Maturity||1 – Average Tax Rate||After-tax Cost of Debt|
Now you will need to calculate the cost of preferred stock. You can use the following table:
|Annual Dividend||Current Value of Preferred Stock||Cost of Preferred Stock (%)|
To calculate the cost of common equity, you can use the CAPM model. Using current stock data, the yield on the 5-year treasury bond, and the return on the market calculated in Phase 2, you can calculate the cost of common equity using the following table:
|5-year Treasury Bond Yield
|Stock’s Beta||Return on the Top 500 Stocks (market return)||Cost of Common Equity|
Now, you can use the cost and ratios from above to calculate the firm’s weighted average cost of capital (WACC) using the following table:
|After-Tax Cost of Debt||Cost of Preferred Stock||Cost of Common Equity||WACC|
|Weight of Component|
|Weighted Cost of Component|
- After completing the required calculations, explain your results in a Word document, and attach the spreadsheet showing your work. Be sure to explain the following:
- How would you expect the weighted average cost of capital (WACC) to differ if you had used market values of equity rather than the book value of equity, and why?
- What would you expect would happen to the cost of equity if you had to raise it by selling new equity, and why?
- If the after-tax cost of debt is always less expensive than equity, why don’t firms use more debt and less equity?
- What are some of the advantages and disadvantages of raising capital by using debt?
- How would “floatation costs” impacted the WACC, and how could they have been incorporated in the formula?
Note: You can find information about the top 500 stocks at this Web site.
S&P 500 index chart. (2014). Retrieved from the Yahoo! Finance Web site: http://finance.yahoo.com/echarts?s=%5egspc+interactive#symbol=^gspc;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;
Be sure to document your paper with in-text citations, credible sources, and list of references used in proper APA format.
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