Decision Analysis



Decision Analysis

Introduction

If we analyze the distribution pattern of Shuzworld; it adequately provides a clear view of the company's adopted strategies for growth and to find a niche for the company's products in the market. The company makes use of a number of tactics and applies a combination of patterns to increase the market share of Shuzworld. The company entered the market with clear intentions to become a market leader by pursuing its mission of become a nationwide leader in its line of business. Ever since the company's inception in 1965; the company has witnessed a consistent pattern of growth. Shuzworld is regarded as a trusted name in providing quality footwear to its customer base and manages to adequately meet the demands of its customers by offering a distinct combination of convenience, style, quality and price.

In this paper, we would discuss the decision analysis process of the company and offer recommendations to enhance the company's decision analysis process and operations. As an Operations Consultant at Shuzworld, a list of recommendations would be provided to supplement and improve the decision analysis processes at the company.

Task

Part A:

In this section, we will develop a distribution pattern for the company to tackle its demand constraints, minimize shipping costs and ensuring availability of products. We will make use of the Transportation module tool for the task in POM QM software. The tool would be used to provide a clear picture of the distribution patterns of Shuzworld. We will use transportation model for the task as it is important when evaluating aggregate production planning.

The transportation model uses linear programming and deals with issues of shipping commodities i.e. running multiple sources on multiple destinations. The main objective of the model is to develop a shipping schedule which minimizes the shipping costs while adequately catering to the supply and demand constraints. The most important function of the transportation model is its ability to use multiple demand and supply points and the development of an optimum minimum cost method; for satisfying the demand using supply points. This model is also applicable in solving other issues i.e. production, inventory control personnel management and planning.

Recondition Equipment Option

If we analyze the financial records of Shuzworld; it is evident that the company should look into the avenue of reconditioning its equipments. The “recondition equipment option” would allow Shuzworld to hold on to its revenues and better allocate its funds in profit earning activities. If you wait until the components fail a rebuild will be much more expensive, your business is thrown off balance, and the cost of unplanned downtime will seriously affect your bottom line.

Selection of Break-even Analysis

The break-even analysis is a widely used technique in production/manufacturing companies. They allow accountants to identify weak links in the company's operations (Hoover, 2009). Primarily, break even analyses are conducted to categorize production costs and outputs as opposed to the perceived volume of production. A depiction of the orthodox break even model is presented ...