How Can We Increase This Process’s Overall Capacity? In the previous post, we: The process’s run time and capacity for each step are as follows: Step Process Time (hr/unit) Capacity (units/week) 1 Cut 3.20 12.50 2 Build 1 5.00 8.00…
In our previous posts, we explored the fundamentals of supply chain management, focusing on what capacity is and the various strategies you can use to increase it. However, a crucial element was missing from the equation: demand. This post will…
Demand Rates Now, let’s analyze the demand during the peak season. The expected average delivery this year is approximately the same as last year’s: 16,379.8 bbls Of this, 70% is expected to be wet cranberries. To determine if the current…
Removing Idle Time In our previous post, we identified the primary challenge at the National Cranberry processing plant: a severe bottleneck in the wet cranberry processing line because the truck arrival rate exceeded the plant’s capacity. Now, we will explore…
Let’s explore the concepts of setup cost and batch size. These ideas are fundamental to almost every business, and we can understand them easily by looking at a simple one-person business example: a YouTube creator’s workflow. What is Setup Cost?…
Following our previous exploration of the cash conversion cycle (CCC), we will now put the theory into practice. This analysis will focus on calculating and examining the CCC for Amazon, a company well-known for its exceptional cash management efficiency. By…
Finance is the study of how people and organizations manage money and assets. Whether you’re saving for retirement or a company is planning a major expansion, the core principles of finance are at play. Let’s take a look at some…
Financial professionals often estimate a company’s worth by analyzing its Earnings Per Share (EPS) and applying a multiple valuation method. Multiple valuation is widely used in the stock market because it combines profitability with how investors typically price similar companies.…
Solvency and liquidity reveal a company’s ability to meet financial obligations, both short and long term. A View of the Company’s Financial Viability This concept reflects a firm’s financial survival. The central question is: Can this business pay its debts?…
Revenue recognition is the process of figuring out exactly when and how much revenue a company should report. It’s not just about when cash is received; instead, it’s about when the company has earned that revenue by fulfilling its promises…