Delta Energy Incorporated serves rural communities across the northeast with gas and home heating fuel. All of the following initiatives may be considered a part of the company's CSR efforts except O providing a lunchroom and a fitness center for employees and their families encouraging curbside recycling efforts and incentives in the rural communities served by the company O using biofuel-powered vehicles in its transportation fleet O building a new corporate headquarters in order to downsize several regional offices and reduce overhead costs
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- Cody Paper Mill produces various grades of paper sheeting for industrial uses. All of the following may be considered an initiative undertaken as a part of the company’s CSR efforts except a. investing funds in equipment to reduce greenhouse gas emissions from its production facilities b. improving worker health and safety efforts to reduce injuries in the workplace c. expanding the customer base to increase the net income of the company d. planting trees to replace those used by the paper-making processYou are the Chief Executive Officer for NeverEnding Tyres Inc. You have the responsibility to secure a new distribution center where you own over 1,000 hectares of land near the intended distribution center. For you, this could result to a wonderful, ethical opportunity to make profit a conflict of interest an ethical opportunity to move the distribution center to your hometown the usual decision-making problems of cost versus benefitGreenLawns provides a lawn fertilizing and weed control service. The company is adding a special aeration treatment as a low-cost extra service option that it hopes will help attract new customers. Management is planning to promote this new service in two media: radio and direct-mail advertising. A media budget of 3,000 is available for this promotional campaign. Based on past experience in promoting its other services, GreenLawns has obtained the following estimate of the relationship between sales and the amount spent on promotion in these two media: S=2R210M28RM+18R+34M, where S = total sales in thousands of dollars R = thousands of dollars spent on radio advertising M = thousands of dollars spent on direct-mail advertising GreenLawns would like to develop a promotional strategy that will lead to maximum sales subject to the restriction provided by the media budget. a. What is the value of sales if 2,000 is spent on radio advertising and 1,000 is spent on direct-mail advertising? b. Formulate an optimization problem that can be solved to maximize sales subject to the media budget of spending no more than 3,000 on total advertising. c. Determine the optimal amount to spend on radio and direct-mail advertising. How much in sales will be generated?
- Sunny Nights Inc. is completely powered by the city power grid, but management is considering switching fuel sources in an effort to improve the publics perception of the companys corporate social responsibility. Within the next five years, management wants the company to be completely solar powered and to market this change through company advertising. Upon consulting with Sunny Nights, you have determined that an appropriate course of action is to include this CSR activity as a strategic objective on the companys current balanced scorecard. a. Determine the appropriate performance perspective for the CSR strategic objective. b. Suggest one possible performance metric for the objective. c. Determine an appropriate yearly performance target for the performance metric.Basuras Waste Disposal Company has a long-term contract with several large cities to collect garbage and trash from residential customers. To facilitate the collection, Basuras places a large plastic container with each household. Because of wear and tear, growth, and other factors, Basuras places about 200,000 new containers each year (about 20% of the total households). Several years ago, Basuras decided to manufacture its own containers as a cost-saving measure. A strategically located plant involved in this type of manufacturing was acquired. To help ensure cost efficiency, a standard cost system was installed in the plant. The following standards have been established for the products variable inputs: During the first week in January, Basuras had the following actual results: The purchasing agent located a new source of slightly higher-quality plastic, and this material was used during the first week in January. Also, a new manufacturing process was implemented on a trial basis. The new process required a slightly higher level of skilled labor. The higher- quality material has no effect on labor utilization. However, the new manufacturing process was expected to reduce materials usage by 0.25 pound per container. Required: 1. CONCEPTUAL CONNECTION Compute the materials price and usage variances. Assume that the 0.25 pound per container reduction of materials occurred as expected and that the remaining effects are all attributable to the higher-quality material. Would you recommend that the purchasing agent continue to buy this quality, or should the usual quality be purchased? Assume that the quality of the end product is not affected significantly. 2. CONCEPTUAL CONNECTION Compute the labor rate and efficiency variances. Assuming that the labor variances are attributable to the new manufacturing process, should it be continued or discontinued? In answering, consider the new processs materials reduction effect as well. Explain. 3. CONCEPTUAL CONNECTION Refer to Requirement 2. Suppose that the industrial engineer argued that the new process should not be evaluated after only one week. His reasoning was that it would take at least a week for the workers to become efficient with the new approach. Suppose that the production is the same the second week and that the actual labor hours were 9,000 and the labor cost was 99,000. Should the new process be adopted? Assume the variances are attributable to the new process. Assuming production of 6,000 units per week, what would be the projected annual savings? (Include the materials reduction effect.)Analyze CSR initiatives at Green Manufacturing Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The companys operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities: The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect. A. Identify which CSR activities Green Manufacturing should implement. B. For each CSR activity you recommend, identify an appropriate related performance metric.
- Make a Decision: Analyze CSR initiatives at Gree Manufacturing (from Chapter 14)Obj. 5 Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The company's operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities: Initial Added CostVariable CostVariable SavingsRecycle and reuse production materials$ 5,000$0.10 per lb. of recycled material$0.15 per lb. of recycled materialAdd solar panels as a source of power 700,000$ 1,000 per year$ 33,000 per yearReplace assembly room light fixtures with natural light 120,000$ 180 per month$ 220 per month The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect.a.…Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: Activities Activity Cost Billing error correction $60,000 Cable signal testing 140,000 Reinstalling service (installed incorrectly the first time) 40,000 Repairing satellite equipment 50,000 Repairing underground cable connections to the customer 25,000 Replacing old technology cable with higher quality cable 175,000 Replacing old technology signal switches with higher quality switches 150,000 Responding to customer home repair requests 30,000 Training employees 80,000 Total 750,000 Prepare a Pareto chart of these activities.The company manufacture XYZ brand Zinc Chloride AA, AAA and 9v batteries, Alkaline AA, and AAA batteries. LED bulbs including emergency lamps, LED panel lights, and Industrial lights You are planning of plant relocation of your factory 50km away from the current establishment What type of leadership practice or practices more suitable to deploy to address the above situation? Justify your answer for selection
- Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The company’s operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities: Initialadded cost Variable cost Variable savings Recycle and reuse production material $5,000 $0.10 per lb. of recycled material $0.15 per lb. of recycled material Add solar panels as a source of power 700,000 $1,000 per year $33,000 per year Replace assembly room light fixtures with natural light 120,000 $180 per month $220 per month The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect. a. Determine if it is viable to recycle and use…Drain Your Brain, a local video arcade, is considering the addition of a new virtual reality system. Several different vendors have been contacted. The owner of the arcade, affectionately referred to by patrons as Wizard, has narrowed his selection to one of three choices (mutually exclusive alternatives). The data below describes the three systems under evaluation. Annual costs are based on electricity consumed, replacement parts based on use, and preventive maintenance. Revenue estimates are provided by the vendors based on regional data and relative thrill as compared to other arcade games and a cost of $1.00 per play. a) Which method (PW, AW, FW, IRR) would be best (easiest) to use to select the preferred alternative? b) What is the implicit study period for this problem? c) Which alternative should be selected when MARR is 15%? (AWA=$ ?)Classify the following environmental activities as prevention costs, detection costs, internal failure costs, or external failure costs. For external failure costs, classify the costs as societal or private. Also, label those activities that are compatible with sustainable development (SD). 1. A company takes actions to reduce the amount of material in its packages. 2. After the activated carbons useful life, a soft-drink producer returns this material used for purifying water for its beverages to the supplier. The supplier reactivates the carbon for a second use in nonfood applications. As a consequence, many tons of material are prevented from entering landfills. 3. An evaporator system is installed to treat wastewater and collect usable solids for other uses. 4. The inks used to print snack packages (for chips) contain heavy metals. 5. Processes are inspected to ensure compliance with environmental standards. 6. Delivery boxes are used five times and then recycled. This prevents 112 million pounds of cardboard from entering landfills and saves 2 million trees per year. 7. Scrubber equipment is installed to ensure that air emissions are less than the level permitted by law. 8. Local residents are incurring medical costs from illnesses caused by air pollution from automobile exhaust pollution. 9. As part of implementing an environmental perspective for the Balanced Scorecard, environmental performance measures are developed. 10. Because of liquid and solid residues being discharged into a local lake, the lake is no longer fit for swimming, fishing, and other recreational activities. 11. To reduce energy consumption, magnetic ballasts are replaced with electronic ballasts, and more efficient light bulbs and lighting sensors are installed. As a result, 2.3 million kilowatt-hours of electricity are saved per year. 12. Due to a legal settlement, a chemicals company must spend 20,000,000 to clean up contaminated soil. 13. A soft-drink company uses the following practice: In all bottling plants, packages damaged during filling are collected and recycled (glass, plastic, and aluminum). 14. Products are inspected to ensure that the gaseous emissions produced during operation follow legal and company guidelines. 15. Operating pollution control equipment incurs costs. 16. An internal audit is conducted to verify that environmental policies are being followed.