BUS 490 BSG Simulation Quiz 1

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At the end of Year 10, going into Year 11, the company’s production capability was

6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.

The market for private-label athletic footwear is projected to grow

10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.

Which of the following are the 5 measures on which a company’s performance is judged/scored?

Earnings per share, ROE, stock price, credit rating, and image rating

Which of the following best describes the materials the company uses to make its footwear?

Standard and superior materials

Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?

Singapore dollars, euros, U.S. dollars, and Brazilian reals

Which of the following is not an accurate characteristic of your company’s plant operations?

The company makes most all of its footwear materials and components in-house, uses 100-person assembly lines to make branded shoes at the rate of 500 pairs per day, and outsources private-label footwear from contract manufacturers in the Asia-Pacific.

A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by

how favorably its wholesale price compares with the wholesale price of the company having the highest S/Q rating in any of the four geographic regions.

The interest rate a company pays on loans outstanding depends on

its credit rating.

The factors that affect a company’s S/Q rating include:

whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model.

The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to

any applicable import tariffs and exchange rate adjustments.

The factors that affect worker productivity include

Whether plant upgrade option D has been installed, the size of incentive payments per non-defective pair, base pay increases, how favorably a company’s compensation package compares with the industry-average compensation package, and expenditures for best practices training.

Which one of the following does not affect the reject rates at a company’s plants?

The S/Q rating of pairs being produced and the use of plant upgrade option B

The market for branded athletic footwear is projected to grow

9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period.

In Year 11, footwear companies can expect to sell

exactly 4.844 million branded pairs and 800,000 private-label pairs.

Which of the following are components of the compensation package for production workers at your company’s plants?

Base wages, incentive payments per non defective pair produced, and overtime pay

Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear?

North America, Latin America, Asia-Pacific, and Europe-Africa,

Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?

The number of new performance features built into each year’s models/styles

The company currently has production facilities to make athletic footwear in

North America and Asia-Pacific.

Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?

The company’s bid price

Which the following are factors in determining a company’s credit rating?

Its default risk ratio, debt-asset ratio, and interest coverage ratio

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