Assessing How Well Companies Manage Their Essay Example | Topics and Well Written Essays - 500 words

Assessing How Well Companies Manage Their - Essay ExampleIf a firm pays its bills with a 30-day delay, 2/3 of its purchases will be paid for in the current quarter. 5/6 of its bills will be paid for in the following quarter. If its payment delay is 60 days, 1/3 of its purchases will be paid for in the current quarter. 2/3 of its bills will be paid for in the following quarter.The vice presidents proposal of accepting consumer faith cards yields a high contribution of $1,152,000 as compared to the exchanges managers proposal of looser credit policies that yields a contribution of only $590,000. Therefore, Moorer Corporation would be better off under the vice presidents proposal. Credit sales should not be abolished. Though credit sales would result in uncollectible accounts receivable, abolishing credit sales altogether would result in woolly sales that might be more than the uncollectible accounts receivable. This is because it is common practice nowadays, especially in the sale of luxury consumer goods.1. John Burton should develop a JIT inventory system. A JIT inventory system reduces in-process inventory and its associated embody (Just in time, n.d.). JIT manufacturing means making a good or service only when the customer, internal or external, requires it (Atkinson et al., 1996). The process is driven by a series of signals, or Kanban, that tell production processes to make the bordering part.