Question

Professional Home Theater Management anit price of the Home Theater systems would be only $210. The other lapanese suppler s Nony. Although Nony originally started in Japan, also outside of Tokyo. now has aftes and Ever since the introduction of the first home theater systems for television, Fadi Faddoul has dreamed about manufacturing his own Home Theater system for professionals. During the early years of home theater, Fadi watched a lot of his favorite old movies on his home theater and planned the eventual development of his own Home Theater system. He intended it to be used primarily by television stations, advertising agencies, and other individuals and groups that wanted the best in Home Theater systems. The overall configuration of this system is shown in the illustration. The basic system includes a comprehensive control box, two separate DVD facilities around the world. One of these than 100 miles north of Atlanta, Georgia. Like Toshida, Nany offers quantity discounts for DVD player systems. For quantities ranging from 0 to 1,000, Nony's per unit cost is $230. For quantities that range from 1,000 to 5,000 units, the unit cost ls $240; and for over 5,000 units, the unit cost drops to $220. Because Nony has manufacturing facilities located in the United States, the cast to place an order and the delivery time are much more favorable than they are with Toshida. The estimated per order cost from Nony is $40, and the expected delivery time s two weeks. On the other hand, the ordering cost is higher and delivery time is longer for Tashida. The onal paperwork and problems associated with ordering directy from Japan would increase Fadi's cost to $90 per order. Furthermore, the delivery time for Tashida is three manths. Fadi estimates that his carrying cost would be 30 percent. This is due primarily to player systems, a DVD disk, and a professional-quality television set. All these devices are fully integrated. In addition, the baskc system comes with an elaborate remote control device. This device can operate both Home Theater systems, the DVD disk, and the IV system with ease. The remote control device works by sending infrared signals to the control box, which in turn controls the other devices in the system. storage and handing cost as well as the potential for Fad's unique contribution to the Home Theater systems is the control bax. The control box is an advanced microprocessor with the ability to coordinate the use and function of the other or so of operations, Fadi decided to sell only the basic unit: the control bax, the telrvisiorn et, the DVD disk, and the two DVD player systems. The demand for the complete system was uring the past six months. For example, June sales were 7,970, Juy sales were pattern t devices attached to it. 8,070, August sales were 7.950, and September sales were 8,010. This demand expected to continue for the next several months. Fadi's professional Home Theater system has numerous advantages over similar systems. To begin with, special effects can be intr Theater systems, and the television system can easily be pl easily, Images from the DVD disk, one of the Home placed on the other Home Theater 1. What are the reorder points for Nony and In addition, it is possib the Macintosh, the IBM PC, the Radio Shack Model 3000, and advanced Zenith and if you were Fad, which company would you choose to supply the DVD player systems for your professional Home Theater system? including Coleco computer systems. This makes it possible to develop attractive graphics on the microcomputer and to transfer them directly to the Home Theater system. it is also possibie to hook a stereo system to the control box to integrate the highest quality stereo sound into th system and record it on one of the Home Theater systems. The two Home Theater systems also offer remarkable flexibility in editing. Several special editing buttons were placed on the remote control station. It is possible to first record a program on one Home Theater system and then edit it by using the other DVD player system to add and delete sections. One of the best 3. Fadi is considering several alternative strategies. The first would be to sell all of the components separately. The second strategy would be to modify the control bax to allow other DVD player sy by Fadi. In general, what impact would the adoption of these strategies have an the stems to be used as well as the DVD player systems suppled reorder point and inventory control for Fadi? I Home Theater system is the price. The basic system, including the control box, both Home Theater systems, the DVD disk, and the television system, has a retail price of $1,995. Fadi found manufacturers for the television system, the contrel box, and the DVD disk system in the United States. Because DVD player systems are more popular, Fadi had more choices. After extensive research, he was able to eliminate all of the potential suppliers but two. Both of these Toshida is a new company located outside of Tokyo, Japan. Like ather suppliers, Toshida offers quantity discounts. For quantities ranging from o to 7,000 units, Toshida would charge Fadi a price of $250 per Home Theater system. For quantities thst ranged between 7,000 and 8,000 units, the per unit cost would be $230. For quantitles ranging from 8,000 to 20,000 units, the unit price drops to $220 For more than 20,000 units, the per

Answer 1

Important Points:

• When the introduction time of home theatres of Fadi Faddoul has dreamed about manufacturing his own home theatre system for professionals. Earlier, Fadi used to watch a lot of his favourite old movies on his home theatre so accordingly he eventually started developing of his own system.

• Fadi intended it to be used primarily by television stations, advertising agencies, and other individuals and groups that wanted the best in the home theatre system.

• The basic system includes a comprehensive control box, two separate DVD player systems, a DVD disk, a professional quality television set. These are fully integrated and it comes with an advantage of remote control system, this device can operate both theatres systems and DVD disk and TV systems easily. The remote works by sending infrared signals to the control box, which in turn controls the other devices in the system.

• Fadi's unique contribution to the home theatre system is the control box. It is generally an advanced microprocessor with the ability to coordinate the use and function of the other devices attached to it.

• Fadi professional home theatre system has numerous advantages over similar systems. It is quite friendly to connect the control box to several popular microcomputers including the Macintosh, the IBM PC, the radio shack model 3000, and advanced Zenith and coleco computer systems.

• This makes it possible to develop attractive graphics on the microcomputer and to transfer them directly to the home theatre system and it also supports to hook stereo systems to the control box to integrate the highest quality stereo sound into the system and record it on one of the home theatre systems. The two home theatre systems offers remarkable flexibility in editing, several special editing buttons were placed on the remote control station.

• The Best feature of Fadi’s professional home theatre system is the price. The basic system including the control box both home theatre system and the DVD disk and the Television system have the retail price of $1,995.

• Fadi has finally found manufacturers for the television systems, the control box and the DVD disk system in the United States. As the DVD players are more popular, Fadi had more choices.

• After an extensive research, he was able to elevate all of the potential suppliers but two. Both of the suppliers are Japanese companies. Toshida is a new company located outside of Tokyo, Japan. The other Japanese supplier is Nony, it is also in outside of Tokyo, Japan but it has offices and manufacturing facilities all over the world.

1 Ans:  Recorder points for Nony:

• Nony has manufacturing facilities in the United States, so the cost to place an order and the delivery time are much more favourable.
• The estimated per order cost is $40 and the approximate delivery time is two weeks.
• Nony offers good discounts for its DVD player systems.

Recorder points for Toshida:

• The ordering cost is higher and delivery time about 3 months.
• The added paper work creates difficulties and apparently the cost per order would increase up to $90.
• It is a new company so it cannot offer any sort of discounts and risk range is high.

2 Ans: If i am Fadi, i would like go with Nony, as it has more advantages than disadvantage’s.

Advantages:

• Low risk
• High profits
• Delivery cost is moderate
• Delivery date is only two weeks
• It has offices in United States
• It offers good discounts

Disadvantages:

• High speed many problems
• Challenges of selling the product

As Nony has good range of possibility of success, i will support to move ahead and choose this for supplying DVD player system for the professional home theatre system.

3 Ans: The below are the recorder points for the adoption of these strategies have on the inventory control:

• Profits will be slow
• It gives specific time for analysing the DVD player systems which i generally not required on a daily note.
• Separating components won't fulfil the requirement to complete on time.
• Control box is already unique in its own and no changes or strategies required for it.