Solutions Ch 10-11

Solutions Ch 10-11 - DQ10-1 Among the three functional...

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DQ10-1 Among the three functional entities (marketing, finance, and logistics) shown in Figure 10.1, what goal conflicts could exist and how might this effect the results of the OE/S process? ANS. Some potential incongruences in goal orientation not already discussed in the chapter include the following: a. Marketing vs. Logistics: 1) The sales order department wants to speed delivery. Shipping is pressured to hurry the shipment of orders at the potential expense of accurate processing of those shipments. 2) The warehouse makes the decision to ship substitute goods without consulting the sales order department. Such a situation could result in customer dissatisfaction and inaccurate inventory records if the recording of the shipment is for the ordered goods and not the substituted goods. 3) Because of overly optimistic sales projections by marketing personnel, excessive quantities of goods are produced or purchased. These goods are not stored in the warehouse in the most efficient manner. 4) Marketing may plan promotions without giving warehouse and shipping managers sufficient time to schedule additional personnel need to handle the increased sales volume. b. Marketing vs. Finance: 1) Goods are shipped even though the quality of those goods may be substandard. Sales returns and allowances are exacerbated as a result. Processing these returns is costly. 2) Marketing changes its compensation of field salesmen from straight commission to a combination of salary plus commission. Selling expenses increase, but there is no commensurate improvement in sales volume. 3) So that customer requests can be easily satisfied, marketing prefers that a large quantity and variety of merchandise be on hand in the warehouse. The cost of handling and storing these goods is excessive. c. Finance vs. Logistics: 1) Warehousing prepares a capital budget request for new materials handling equipment (and/or personnel) that can improve the efficiency of warehouse operations. Finance rejects the request because it fails the tests of maximum payback period and internal rate of return. 2) The warehouse makes the decision to ship substitute goods, without consulting sales order processing (see answer a., part 2). Such a situation could result in abnormal sales returns.
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DQ10-8 An enterprise system supports a business process by: a. Facilitating the functioning of the business process b. Providing records that business events have occurred c. Storing data for decision making Describe how the enterprise system depicted in Figure 10.11 provides support in these three areas. ANS. An enterprise system: a. Facilitates the functioning of a business process by determining customer existence and credit-worthiness, determining availability and location of inventory, calculating delivery date to be given to the customer, and preparing the picking ticket, bill of lading, and packing slip. b.
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Solutions Ch 10-11 - DQ10-1 Among the three functional...

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