Supply Chain Design Essay Example | Topics and Well Written Essays - 1000 words

Supply Chain Design - Essay Example All of these themes can be of paramount importance to augmenting supply chain design for most businesses in today’s competitive environment. Internet and IT Technology has expanded world over enormously and it goes without doubt that its use is must for designing an effective supply chain in numerous products and services. For example, Solectron uses ‘Agile software’ to access numerous suppliers online for pricing and availability of supplies. This resulted into reduction of cycle time while introducing new product to its customers (Lee). Companies such as Dell, Adaptec, Cisco, Zara (Global Stretch), and numerous others have used the internet to make their supply chain management most effective. Cisco has created an e-Hub that links multiple suppliers via the internet to meet needs of the market and make supply chain more efficient (Lee). The companies expand their sourcing opportunities and reduce their inventory holding between supply chain partners. In fact, the internet has replaced the traditional model of supply chain management with more efficient and effective supply chain design making the use of IT technologies (Lee). Southwest Airlines has been able to manage its profitability during difficult times of post 2008 recession through i2 technologies deployed for supply chain management. The company has been able to increase its service levels to 95 percent and excess inventory of $30 million has been identified using i2 tools (SupplyChainBrain). Currently, companies are facing an increasingly difficult situation to provide customized products and services without any lapse of time and in this process, they have to see that there is no significant cost increase in their offerings. This is the theme on which companies have to design their supply chain to gain the competitive advantage. It is indeed a challenging task for companies! In usual sense, customization will

Case Study problems (4) Chapter 15 Example | Topics and Well Written Essays - 250 words

Problems (4) Chapter 15 - Case Study Example Additionally, through Dutch auction IPO, there is no audited financial report requirement thus the external auditors fees are avoided. Based on the low costs of holding the IPO using Dutch auction as compared to traditional IPO, S&S Air should go public through Dutch auction IPO. In calculating the optimal size of IPO, the company should compare its financial and operational performance with that of few public-owned firms within the Air industry. The firm in collaboration with the underwriter should base their prices after analyzing the market price ratios, making the appropriate adjustments based on the companies-specific differences (Benninga and Sarig 411). In this way, they determine the maximum and minimum share price. This is followed by gathering recent IPO market information and lastly setting a final offer price. The major advantage of increasing the size of S&S Air IPO to $80 is that the company will raise more funds that are needed to support its current growth and future expansion. However, the major disadvantage is that it is costly for a firm leading to low profitability. S&S Air underwriter fees amount to $4,200,000 calculated as (.07*60,000,000). Adding the to all the other IPO direct costs, the total costs amounts to $6,358,500. As a percentage of the funds received, the IPO will cost the company $6,358,500/60,000,000*100=10.60% (Benninga and Sarig 411). During the initial public offering, the company through the corroboration with its investment bank has the duty of setting the price of its shares. In this regard, the employees should render their shares to be sold during the IPO since in the secondary offering, the shares prices will significantly be determined by the market forces. Additionally, the demand for shares in the secondary market will be low since most of the external investors will be watching