Cru Computer Rental Essay

970 Words Oct 3rd, 2012 4 Pages
Draw the Flowchart

1996 Customer Receiving Status 24 Status 40 Status 41 Status 42 Status 20 Parts Supplier
I
(unit) 8000 500 1500 1000 500 405 500 2000
R (unit/week) 1000 1000 700 405 405 405 405 1000
T (week) 8 0.5 2.14 2.47 1.23 1 1.23 2

What was The Utilization Achieved by CRU in 1996?
Utilization = (Inventoy on Rent)/(Total inventory by CRU) =8,000/14,405= 55.54%

For 1996, Calculate The Average Time Spent by a Unit in Each Buffer.

1996 Customer Receiving Status 24 Status 40 Status 41 Status 42 Status 20 Parts Supplier
I
(unit) 8000 500 1500 1000 500 405 500 2000
R (unit/week) 1000 1000 700 405 405 405 405 1000
T (week) 8 0.5 2.14 2.47 1.23 1 1.23 2

Calculate The Average
…show more content…
Customer Receiving Status 24 Status 40 Status 41 Status 42 Status 20 Parts Supplier
I
(unit) 8000 500 1500 1000 500 405 500 1200
R (unit/week) 600 600 420 243 243 243 243 600
T (week) 13.33 0.83 3.57 4.12 2.06 1.67 2.06 2

Utilization = (Inventoy on Rent)/(Total inventory by CRU) =8000/13,605= 58.80%

Weekly Revenue=Number of units on Rent × Rental Price=800 ×6×$30= $144,000

Weekly Variable Costs = Throughput × Cost=600 × $25 + 600 × $25 + 420×0.85 × $4 + 243× $150 = $67,878

Weekly Contribution Margin = $144,000-$67,878=$76,122

Weekly Depreciation=(Total Inventory(unit) × Purchase Price)/(Time (week) )=(13,605 × $1000)/(36/12*52)=$87,211.54

Weekly Profit=Weekly Contribution Margin-Weekly Depreciation=$76,122-$87,211.54=-11,089.54

Conclusion:

Situation 1
(R↑, I unchanged) Situation 2
(R↑, T unchanged) Situation 3
(R↓, T unchanged) Situation 4
(R↓, I unchanged)
Weekly Profit ($) 150 -11,087 20,773 -11,090

According to the results, the sales drive was ineffective. For CRU Computer Rental, the increased in demand is not a profitable strategy. To increase profit, CRU should improve the plan in long-term operation

Related Documents