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Your Division Has a New General Manager

question 133

Essay

Your division has a new general manager. As part of his stated tasks, he believes in "getting the right goods to the right places at the right time for the least cost." As your company's logistics manager, you know that this objective provides little practical guidance and could in fact be detrimental to the company objectives. How would you formulate a response to the new general manager to convince him to change his "position" regarding customer service?


Definitions:

Working Capital

The difference between a company's current assets and its current liabilities, indicative of its short-term financial health.

Discount Rate

The discount rate is the interest rate used to calculate the present value of future cash flows in discounted cash flow analysis, reflecting the risk and opportunity cost of capital.

Pretax Return

The income an investor or business earns before any taxes are deducted.

Net Present Value

A financial measurement that calculates the value of a project or investment by discounting the expected future cash flows to their present value using a specific discount rate.

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