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Essay Instructions: Formulate answers to the following questions. 1 page
1. What considerations are there in choosing a method of inventory valuation?
2. Why does the Canada Customs and Revenue Agency not allow companies to use LIFO when calculating Net Income for Income tax purposes?
3. What would happen to the income statement if the amount of ending inventory were incorrectly counted?
4. The above examples were all under the assumption that the cost of inventory is rising. What are the implications of decreasing cost






THE ASSIGNMENT

1. The Business
Choose a business to study. Call and make an appointment with a manager and tell them what kind of information you need. Let your teacher know what company you choose so that there won't be more than one student approaching a company (first come, first served).



2. Visit the Bussiness 1 page
Make sure to ask the following questions:
a) How do you keep track of inventory? (Be sure to ask about the technology involved.)
b) Do you find the technology or method easy to work with, convenient, etc.?
c) Do you do a periodic physical inventory? How often?
d) Are there any problems with this inventory method?
e) What accounting method does the business use? (FIFO, LIFO, Average)
f) What kinds of internal control and security measures do they implement? How is cash controlled? Is there a division of responsibility for security reasons?
You should be able to get answers for some of these questions, but sometimes businesses are reluctant to tell you things because of security or lack of knowledge of accounting. If you cannot find the answer, tell your teacher what you think they would do. Which inventory method would make sense?




3. Write the Report 2 pages
It should include:
• a description of the business
• whom you spoke to - name and title
• a description of their inventory system - who in the business is involved in tracking inventory and how do they count it?
• an evaluation of the inventory method from an accounting perspective (done by you). Is it accurate? Does it give you all the information you want? Which cost flow analysis method would you use to value the inventory? Why?





There are faxes for this order.

Customer is requesting that (amber111) completes this order.

Essay Instructions: Welcome to the second SLP project for this course. For this paper, please review the logistics system of the organization you are examining and in a 3-4 page paper answer the following questions:

Does your selected organization use quality management procedures in its logistics system? In what ways (as you are to give some specific examples)? If the organization does not use quality management procedures, what steps would you suggest they put in place in order to improve its logistics system?

Be sure to provide some description of the different quality tools, processes, etc. and be specific in your examples.

SLP Assignment Expectations

Research the organization with information you can find on the internet or other resources you find on your own. The paper should be 3-4 pages in length and have a cover sheet and a reference page. Clarity of presentation is important, as well as your ability to apply the topics to the logistics area of your selected firm. Use at least 3 different sources of information and annotate your sources of information appropriately on your references page and within the text as necessary. You will be assessed on how well you demonstrate your knowledge of the topic as it applies to your selected firm.



The previous chosen organization is below:

The organization I want to study is Wal-Mart, the world's largest retailer. Wal-Mart is a retailer that sells a wide range of goods, including food, and does so in many countries around the world. They are the biggest retailer in the world, and one of the biggest companies.
I chose Wal-Mart because its supply chain management is famous. They are a good case study for inventory management. The basic business model for Wal-Mart is cost leadership. This business model relies on selling high volumes of goods on slim margins, so there is considerable emphasis on the part of the company to have a highly efficient supply chain. Wal-Mart has nearly $45 billion in inventory, but turns it over 10.6 times per year, or once per month, roughly.
Wal-Mart is known to use a number of intriguing technologies to help with its inventory management. The company uses RFID to keep track of inventory as it moves through its system ? so once Wal-Mart has taken the inventory it knows where to direct it. There are dozens of warehouses around the country, each serving a number of different stores, and the company must know how much each store needs, because when the goods arrive at the warehouse, the objective is to move them out to the stores as soon as possible, using cross-docking if possible.
Wal-Mart managers also receive up to the minute reports on sales. This helps them to do their ordering, because they not only know the rate of sales and the existing inventory level, but they also know the standard deviation of the sales as well. This helps in ordering. The fact that the warehouses serve a number of different stores in the region helps to smooth out store-level demand volatility. This also allows the warehouse level to manage some of the inventory, for example if a region has a run on certain things due to weather events, it can pull inventory from elsewhere in the system to meet shortages, rather than change the amount ordered from the supplier. The benefit of this is clear ? that run on snowblowers after the October storm is an outlier event, not a new normal, and the outlier event part of that has to be communicated effectively to the vendor.
Wal-Mart does not use a vendor managed inventory (VMI) system. A lot of the things that VMI does, Wal-Mart also does. There is a high level of communication with the vendor, for example, and Wal-Mart generates a tremendous amount of data to support purchasing decisions. But the vendors do not determine inventory levels. The reason is simple ? maintaining a highly efficient inventory system is a critical part of Wal-Mart's business model. The company believes that it can run its own inventory better than anybody else, so it makes the decisions. This is the case even when it deals with massive companies that usually work with VMI systems ? Pepsi, Coke, Anheuser-Busch and those types of companies. Wal-Mart still runs its own inventory when dealing with those companies.
This is not a knock on VMI at all. Wal-Mart simply believes that its own inventory management system is better. It also recognizes that it has a high amount of bargaining power, such that the risks associated with inventory problems should be on the supplier, not on Wal-Mart. It has the luxury of offloading risk on the vendors, something more retailers cannot do, and this is one of the reasons why Wal-Mart has a competitive advantage on cost.
I think that Wal-Mart technically could use VMI. This is because it has the technology in place and it already engages in a high level of communication with its suppliers. So on that level, Wal-Mart could use VMI. But I do not think that it would, because to do so would put too much control on the vendors to manage its inventory. That is a non-starter from a business perspective for Wal-Mart, and I would expect that it prefers to control its inventory levels and seek its out solutions.
The key to Wal-Mart maintain the right inventory levels and costs are data and volume. The costs are closely associated with the very high level of bargaining power that Wal-Mart has, wherein it basically dictates to its customers the price, and the customers either make that price or they do not get the deal. Ultimately, Wal-Mart offers phenomenal volume so it dictates on things like price and delivery. In terms of managing inventory levels, that is why Wal-Mart gathers such a high level of data. Its managers have access to real time sales, and their systems have built-in ordering triggers.
So let's say that Wal-Mart sells 17 tins of chipotle peppers a day. The store likes to keep 10 days' inventory on hand for non-perishable food items. So it has 170 tins of chipotle peppers in store. It takes 12 hours to fill an order from the warehouse, because there are regular delivery trucks and they just have to put more cases of chipotle on board. The company's system will have a trigger than says if supply goes below, say, 2 cases (48 cans), than another 11 cases need to be ordered, to bring that level back up to 170. The system will know when sales are at a normal pace, and when they are abnormal. The use of the triggers allows for the goods to only be ordered when they are needed, and the sales data will take the changes into account and continually evolve the trigger point in response to new data. That is how Wal-Mart manages its inventory, using data and set max and min levels for different goods.

Essay Instructions: please label mod 1 opm 500

Inventory Control at Wheeled Coach Ambulance

Firms like Wheeled Coach spend over half of their sales revenue on purchases. These purchases are often in inventory and represent a huge portion of Wheeled Coach?s assets. But, perhaps even more importantly, the ambulances cannot be built if the proper inventory is not on hand when needed.

Two important inventory management techniques are ABC analysis and Cycle Counting. Wheeled Coach uses both. But effective inventory management begins at the design stage. Efficient inventory control requires knowing what is needed. Bills-of-material (BOM) provide this knowledge. Therefore Wheeled Coach spends substantial time and effort making sure the BOMs are correct. Only then does it know what to purchase and have available for the production process.

ABC analysis helps firms develop policies and procedures for controlling inventory. ?A? items are the expensive items such as the chassis (usually purchased from Ford), aluminum (from Reynolds Metal), and plywood used for flooring and cabinetry (from local suppliers). These few items constitute the majority of the inventory values at Wheeled Coach. They are tightly controlled, from purchase to use, with effective security. Orders are negotiated to maximize quantity discounts while minimizing on-hand quantities. Some items, such as aluminum, must be ordered as much as eight months in advance. ?B? items are less expensive and controlled less tightly. Finally, ?C? items have less control, but all items are stored under lock and key and only removed from a secure area if they are on a BOM.

Part of the control of inventory items at Wheeled Coach is cycle counting. Under cycle counting, ?A? items are counted on a very short cycle, perhaps once a month to verify transaction accuracy. ?B? items are counted less frequently, perhaps every two months. And ?C? items are verified once a quarter or even less frequently. Cycle counting provides a much more effective auditing procedure than periodic (annual) counts of inventory.

Only by driving down purchase costs and maintaining tight control of inventory can Wheeled Coach control its total costs. With 45 competitors and orders that are usually won only after a bidding process, Wheeled Coach has no alternative to effective inventory management.

Please turn in a paper of three to four pages (page counting does not include cover and reference list) discussing the following questions:

1. Explain how Wheeled Coach implements ABC analysis.

2. If you were to take over as inventory control manager at Wheeled Coach, what additional policies and techniques would you initiate to ensure accurate inventory records?

3. How would you go about implementing these suggestions?

Case Assignment Expectations:

Research the topic with information from the background readings as well as any other resources you find on your own. The paper should be 3-4 pages in length and have a cover sheet and a reference page. Clarity of presentation is important, as well as your ability to answer the questions in a succinct, organized manner with research to back up your points. Use at least 3 different sources of information and annotate your sources of information appropriately on your references page and within the text as necessary. You will be assessed on how well you apply the ABC inventory system to a real world company and discuss it in detail. Submit your assignment

Essay Instructions: Rewrite this paper in the issue, rule, analysis and conclusion format (irac) with different words that communicate the same meaning in this essay.

Introduction
As leader in the plastic molding and parts industry, Riordan knows the importance of producing innovative and quality products. The company also understands how internal structure goes hand-and-hand with company objectives. This paper points out some internal problem areas that can affect company objectives. Areas of discussion include finance and accounting, training budget, shipping and receiving, human resources, and the new pyramid bottle cap design. Each area includes the issue, rule, analysis, and conclusion.
Finance and Accounting
Issue
Riordan?s success stems from its ability to remain industry leader of custom plastic parts and by providing viable solutions to its customers. After careful analysis of the company?s finance and accounting systems Riordan Manufacturing cannot accomplish seamless compatibility and potential violations of the General Accepted Accounting Principles (GAAP) is highly possible. Riordan?s three operating entities Georgia, Michigan and California plus the joint venture with the People?s Republic of China each have its own finance and accounting systems. Each entity provides consolidated input to corporate office in San Jose, California.
Rule
The Financial Accounting Standard Board (FASB) under the authority of the Securities Exchange Commission is the governing body that established standards for financial accounting. Financial statements are governs finance and accounting standards important to the economy because investors, creditors, auditors and others rely on the credibility, transparency, and comparable financial information (Financial Accounting Standards Board). Generally Accepted Accounting Principles are uniform minimum standards of guidelines for financial accounting. GAAP established appropriate measurement and classification criteria for financial reporting. Compliance to GAAP provides a reasonable amount of comparability among financial reports of state and local government units.
Analysis
Riordan failure to address the financial and accounting system?s compatibility issue upon acquiring Michigan and Georgia operating entities could prove costly. The analysis of the current Finance and accounting system shows San Jose has a license integrated completely Windows-based ERP manufacturing, distribution and financial management software application designed particularly for plastic processors and process, and assembly manufacturers (University of Phoenix, 2010). The application does not include the source code with the license. Michigan has a vendor developed software application and the attendant source code. The vendor is no longer in business. The software application runs on a pair of DEC?s alpha using VMS operating system, VAX4000 work stations programmed in C. Georgia has a developed software application and an attendant source code to process manufacturing process applications. Georgia system programmed in RPG400 runs on a pair of AS400?s using UNIX operating systems and PC?s as workstations (University of Phoenix).
The corporate office cannot reach ideal compatibility. Each of the three operating entities sends its finance and accounting data to corporate as data files and hardcopy reports. Extra time is necessary to re-enter the hard copy reports and convert the data files to the proper account codes. On the other hand, output is just as challenging. Corporate attempts to combine the data for the general ledger, the balance sheet and income statement is labor exhausting and delays completion to 15-20 days after the month ends. To include external auditors corporate must exude exhaustive labor and additional costs. Corporate effort to meet compliance with new government reporting requirements at the consolidated level becomes more challenging each day. Riordan Enterprises refuses to accept this situation and mandates an alternative method.

Conclusion
Riordan?s current financial and accounting process is time-consuming and costly to say the least. Too much time is spent collaborating data to generate financial statements and ensure compliance with government mandated reporting requirements. The numerous deficiencies found in the finance and accounting prevents Riordan from achieving its full potential. One solution requires upgrading San Jose (corporate) system to include the application source code. The next step is to transform Michigan, Georgia and China to mirror San Jose corporate system. Riordan stands to benefit substantially from this move. After these two steps are complete training is essential for smooth transition and increase efficiency. Some of the benefits include a reduction in process time, elimination of converting data files, and hard copies, more accurate government reporting and less frustration for accounting employees. In general, Riordan can direct its focus on achieving and maintaining reasonable profitability (Riordan Manufacturing, 2006).
Training Budget
Issue
Training budget is over budget. Project management must determine how this happened and determine a viable remedy. Dale Engel, Chief Financial Officer wants to know if Riordan can perform effective training through teleconferencing. Dale Engel has set aside a budget and a timeline for completion.
Rule
Company Directives-Training Budget Guidelines
Analysis
An analysis of the situation reveals a significant increase in the general and administrative line is up from last year and from the previous quarter. The training budget is nearly $100,000 over budget for the quarter. The increase appears to come from overrides in emergency training of the rollout of new systems. Questions center on if some employees charged new project training against the wrong cost center. To add to the confusion the Machining and Systems line also came in just over budget. Human resources management anticipated that travel and training cost would increase with the implementation of the systems integrations project. Project management failed to include training along with the technology projects training material and strategy development.
Further analysis also reveals specific travel details that contribute to the added costs. Some examples include 22 domestic round trips, three round trips between San Jose and China, per diem costs, hotels, rental cars, and overtime, to name a few. Each component of costs may prove verifiable but does a better method exists that would allow the training management teams to accomplish the same goal. One costly mistake was not integrating training into product development. The result of this mistake is a primary reason that training is now over budget.
Conclusion
Riordan Manufacturing needs to develop a high-priority project that would provide a solution for distance learning performed effectively through teleconferencing. According to Encarta? World English Dictionary (2009), ?teleconferencing is videoconferencing via telephone lines using restricted frequency bands that would allow participants to conduct meetings by way of telephone connection.? Using teleconferencing would reduce if not eliminate numerous costs associated with travel expenses. The benefits include reaching large or small populations, wider access to public meetings; and a wider group of people brings a wider range of ideas; an excellent training tool; saves time and travel costs; and saves the company and people money.
Teleconferencing would provide numerous benefits to Riordan but Riordan must not leave out any necessary costs in the budget. Associated costs include equipment, connection sites, transmissions, and moderator training (United States Department of Transportation Federal Highway Administration). Project management must also account for the complexity of implementation of teleconferencing. Basic equipment include personal computers, main computer control system, dedicated telephone lines or satellite hook-up, a television or computer monitor for each participating group and a video camera for each participating group (United States Department of Transportation Federal Highway Administration). Although the initial costs of implementing teleconferencing may seem high the benefits would eventually outweigh the costs and soon return a savings because of the investment. Riordan already have some of the items needed to bring this idea into fruition but training is a must. As long as project management include every cost of implementation and set safeguards for prevention of budget spending (example: pre-approvals from vice-president or a higher authoritative person) this could prove a profitable solution to Riordan training dilemma.
China Move-Receiving-Shipping
Issue
Riordan Manufacturing has a set of procedures in place to ensure consistency and quality control at all locations. The common set of procedures applies to receiving of raw materials, tracking during manufacturing, and accounting of finished good inventories. The issue with Riordan?s common set of procedures is that it contains unnecessary steps, heavy dependency on paper forms and human input that creates a high potential for error.
Analysis
When the delivery of raw materials arrive in receiving the shipping document passes from the driver to the shipping area supervisor (for validation). After validation, receiving staff unloads the raw materials and take the materials to the raw materials area. The receiving supervisor gives the log of raw materials received and the shipping documents to the receiving clerk for entry into the inventory system. The receiving clerk enters types of materials, the vendors, and the quantity received.
During manufacturing operations the manufacturing team logs the amount of raw materials used on a raw materials use form. Manufacturing team gives the form to the inventory clerk who enters the information into the inventory system upon receipt of the form. At the end of the day the manufacturing team also gives a form with the number of sub-assemblies and completed end-product for each day.
In the shipping department sales orders come via phone or fax. A shipping clerk enters the sales orders in customer shipping and billing system. The shipping department loads the trucks according the shipping document that generates daily. The shipping clerk uses the shipping documents to update the inventory system. At the end of the year a clerk reconciles raw material quantity, sub-assemblies and finished products against a physical inventory.
Conclusion
A close review of Riordan?s inventory management and control system reveals use of eight different forms from receiving raw materials to the driver leaving the shipping area. A clerk has to enter each of these forms into the inventory system. The potential for error increases each time a clerk enters a form into the inventory system. Tracking is sometimes difficult if someone in the company needs information right away. For example, the shipping clerk does not enter some information in the inventory system until the end of the day. A person may have to research hand-written logs to confirm data. The entire process is time-consuming, labor demanding, and not cost-effective.
One solution to increase efficiency is to integrate Radio Frequency Identification (RFID) technology. According to the Association for Automatic Identification and Mobility (2010), ?RFID is a system that transmits the identity (in the form of a unique serial number) of an object or person wirelessly using radio waves? (Association for Automatic Identification Para 1). The RFID system allows information transmission by a portable mechanism (tag), then read by an RFID reader and processed based on needs of the application. RFID is beneficial for tracking, supply chain management, retailing, and payment systems, and security, and access control (Association for Automatic Identification, 2010). When Riordan Manufacturing receives raw materials the RFID device will scan the item bar code, update the inventory system, allow easier tracking, reduces time, and also updates inventory when finished goods ships out of inventory. The RFID system eliminates majority of the forms currently in use and reduces errors from human input. The savings incurred could be used to increase profit margin in other areas of the company.
Human Resources- Calendar Complaint
Issue
The issue in this complaint involves Edwina Hernandez, an employee who becomes offended by a calendar of women in bathing suits hanging on the back of Ed Ledford (another employee) door. Human Resources must investigate and determine if this is indeed sexual harassment.
Rule
Title VII (Civil Rights Act) and Employee Handbook
Title VII of the Civil Rights Act prohibits sexual discrimination in the workplace. Title VII classifies sexual harassment as a type of sexual discrimination and is a violation of Title VII (The US Equal Opportunity Employment Commission).Title VII categorizes sexual harassment in two forms, one quid pro quo and atmosphere of harassment. Quid pro quo cases are those in which employers requires employees to agree to sexual advances to remain employed. The United States Equal Employment Opportunity Commission is the governing agency that investigates sexual harassment (and other sexual discrimination claims) complaints filed. Atmosphere of harassment are those in which invitations, language, pictures or suggestions become so pervasive that it creates a hostile work environment (Jennings, 2006).
Analysis
When Edwina told Allen Tanis (Assistant Plant Manager) about the calendar incident she asserts emphatically the calendar has ?naked women? on it. Allen told Edwina to contact Karen Essenburg, an employee specialist and follow procedures of a sexual harassment claim. Edwina was very insistent that she would not cooperate with Human Resources to file a sexual harassment claim against Ed Ledford (Team Superintendent). Allen reported Edwina?s accusation to Karen and Ed went to talk to Ed. The calendar in question did not have ?naked women? but rather women in bathing suits. After Karen told Ed that the calendar may not be appropriate in the workplace Ed took it down and threw it in the trashcan.
Conclusion
Riordan Manufacturing handbook has a policy governing business ethics and conduct and guidelines for sexual harassment. According to Riordan?s employee handbook, ?any supervisor or manager who becomes aware of possible sexual harassment must notify Human Resources Director or any member of management so that it can be investigated in a timely and confidential manner? (Riordan Manufacturing, 2010) p. 20. Allen Tanis actions were consistent with the company policy regarding management duty to act in relation to sexual harassment. Because Ed took the calendar down and threw it in the trashcan his action may prevent further actions taken against him. Ed should have known that calendar is not appropriate for the workplace Edwina refusal to cooperate with Human Resources may prevent her from filing a sexual harassment claim.
Pyramid Bottle ?New Cap Design
Issue
Riordan?s customer The Taylor Group has asked for a new bottle top design that will complete the pyramid shape. Because Taylor Group is working with the French government on another of its products who is receiving pressure to include French companies in its work. Riordan must determine all items that need consideration moving forward.
Rule
Intellectual property laws, trade agreements

Analysis
Riordan?s customer The Taylor Group wants a new bottle cap design to make the pyramid bottle complete. The designers have a new design ready to go. Because Taylor Group is working under pressure from the French government to include more French companies for some if its work the need for intellectual property protection is essential. Taylor Group wants the new bottle caps outsourced to a French company. Riordan has details to outsource the bottle cap production to the Boffy Company.
Conclusion
Some of the items that Riordan must consider before moving forward with the new bottle design are intellectual property (patents, copyrights, and trademarks), and trade agreements. Utility or function patents are those that cover machines, processes, and improvements (Jennings, 2006). Riordan will want to protect any current or existing process or improvements. Design patents provide protection of a product?s features (example: Riordan new bottle cap and bottle design). Riordan will also want to protect its ideas, photographs, name, and logos that will give Riordan exclusive rights to sell, control, or licensed its copyrighted works (Jennings, 2006). Copyrights are important especially if the French companies share in some of Riordan?s work. Another important consideration is for Riordan is trade agreements. Trade agreements have specified terms for the free flow of goods throughout trade countries. One important trade agreement to the United States is the Geneva-based General Agreement on Tariffs and Trade (GATT). GATT was set-up to develop uniform trade policies between the United States and European Union countries (Jennings, 2006). Riordan should review the specific details of GATT when working with European nations like France.










References
Association for Automatic Identification and Mobility: Technologies: RFID / What is RFID?. Retrieved from the internet at http://www.aimglobal.org/technologies/rfid/what_is_rfid.asp
Encarta? World English Dictionary [North American Edition] ? & P (2009) online Retrieved from http://www.bing.com/Dictionary/search?q=define+teleconferencing&FORM=DTPDIA&qpvt=teleconferencing+definition

Federal Accounting Standards Advisory Board. Retrieved from the internet on May 16, 2020 at http://www.fasab.gov/accepted.html
Financial Accounting Standards Board http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=6495
Generally Accepted Accounting Principles. Retrieved from the internet on May 16, 2010 at http://www.ofm.wa.gov/policy/80.20.htm
Jennings, M. M. (2006). Business: Its legal, ethical, and global environment (7th ed.). Mason, OH: Thomson.
The UNITED STATES Equal Employment Opportunity Commission: Facts about Sexual Harassment. Retrieved from the internet at http://www.eeoc.gov/facts/fs-sex.html
US Department of Transportation: Federal Highway Administration. Retrieved from the internet on May 18, 2010 at http://www.fhwa.dot.gov/reports/pittd/teleconf.htm