CAPSIM Exam Study Guide [] Graded A+

CAPSIM Exam Study Guide [] Graded A+ "Reliability" *Ans* MTBF 0 Days A/R *Ans* score is reduced by 40% 100% Accessibility *Ans* -2 or more products in fine cut circle -once 100% is reached, you can scale down combined budgets to around $1,400,000 1st Shift Capacity *Ans* number of units possible to produce in 1 year with 8 hour shifts 2 Customer Market Segments *Ans* -low tech -high tech 2nd Shift Capacity *Ans* produces up to twice 1st shift -labor costs are 50% more than 1st shift 3 parts of HR *Ans* 1. Complement 2. Caliber 3. Training 30 Days A/R *Ans* score is reduced 7% 4 Buying Criteria Considered by Customers *Ans* 1. Price 2. Age 3. MTBF (mean time before failure) 4. Positioning 4 Main Company Departments *Ans* 1. Research and Development 2. Marketing 3. Production 4. Finance (HR and TQM may also be used) 4Ps of Marketing *Ans* Price Product Promotion Place 5 Things Finance Department is Concerned with *Ans* 1. Acquiring the capital needed to expand assets 2. Setting Accounts Payable Policy and Accounts Receivable Policy 3. Establish a dividend policy that maximizes the return to shareholders 4. Driving financial structure of firm and its relationship between debt and equity 5. Selecting and monitoring performance measures that support your strategy 6 Basic Strategies *Ans* 1. Broad cost leader 2. Broad differentiator 3. Niche cost leader (low tech) 4. Niche differentiator (high tech) 5. Cost leader with product lifecycle focus 6. Differentiator with product lifecycle focus 60 Days A/R *Ans* score is reduced 0.7% 90 Days A/R *Ans* no reduction to base score A company is charged ___% for inventory carrying cost. *Ans* 12% Accounts Receivable Policy *Ans* amount of time customers can take to pay for their purchases Age-high tech *Ans* wants new technology Age-low tech *Ans* prefers proven technology that's been on the market for years Annual Reports *Ans* results from the previous year Availability *Ans* Addresses inventory shortages Balanced Scorecard *Ans* -financial -internal business process -customer -learning and growth Best Bond Rating *Ans* AAA Bonds *Ans* -10 year notes -company pays 5% brokerage fee for issuing bonds -1st 3 digits of bond are interest rate -2nd 4 digits of bond is the year the bond is due -bonds are used to fund long-term investments -when issuing new bonds, interest rate will be 1.4% over current debt interest rates