As a general rule, you can increase your capacity if your 2nd shift productivity for a particular product is above 80% - then you know you are using up your current capacity to meet the product’s demand. Hope this helps!
Hi Kortne Harris, Of course, you have to make the finance decision after you make all the decisions in the other departments. Why? It is because you need to have clear financial projections, “Projected Income Statement & Balance Sheet”, to be able to make your financial decisions. Put in mind that every number you see in your projected financial statements is “PROJECTED”. This means that it all depends on whether you achieve what you forecasted. What the projected financial statement is basically saying, “If you sold everything you produced and spent the amount you said you will spend, this is the outcome that you will get.” I hope this helps!
I have a working capital of 155 and needs some suggestions on how to fix. This round 4 with two products not sure if I want add another but stock out and working capital it’s zero on score card.
Sarah, No, it is not okay. You should never have a negative net margin. In most cases, if you want to have a positive net margin, your contribution margin should always be above 30%. (Ideally, it should be above 36%). The higher the contribution margin the better. However, you must be following the customer buying criteria when trying to increase your contribution margin. Some segments have lower contribution margins in the first 4 rounds. Then, you need to invest in TQM to lower your costs and decrease R&D revision time. After that, you need to increase automation accordingly to further lower costs. Also, make sure that you are not over spending on Accessibility and Awareness. Spend what you can not what you want. In order to increase contribution margin, you have two main choices. 1. Increase selling price. 2. Decrease cost. If you increase your price by too much, customers will not want to buy your product and sales will decline. However, if you decrease your cost, you will lose nothing. You gotta do a little of both for each segment. Good luck! If you need online tutoring, please reach out to me by email, DynamicDune@gmail.com
Is Capsim bugging you? We will make decisions and apply best strategies for you, Just reach out to us on onlinesimulationexperts.com/business-simulations/ and get FREE Capsim Consultation.
Sorry Victor Suwuh, I don't have a simple solution for your case. It will be very difficult to recover from this much emergency loan. Unfortunately, I do not have time to find the solution for you. It is final projects time in my school. I recommend that you watch my videos to understand the simulation. This will allow you to find the solution and recover. Good luck on your simulation!
Great video! Do you have any tips for the Comp XM exam that are different from your suggestions in these videos?
Hi. Great learning. One small question, when to purchase or sell capacity
As a general rule, you can increase your capacity if your 2nd shift productivity for a particular product is above 80% - then you know you are using up your current capacity to meet the product’s demand. Hope this helps!
Hello, My days of working capital is very high. How can I reduce it?
Smashing the like button just for that intro music
How do you determine the A/R nad A/P lag days? Thank you so much for your video's
Excellent video. Just a question my accounts receivable is negative $5000, may I know how can I fix that ? Thank you.
Should the finance decision be based on the results of the other department decisions?
Hi Kortne Harris,
Of course, you have to make the finance decision after you make all the decisions in the other departments.
Why? It is because you need to have clear financial projections, “Projected Income Statement & Balance Sheet”, to be able to make your financial decisions.
Put in mind that every number you see in your projected financial statements is “PROJECTED”. This means that it all depends on whether you achieve what you forecasted. What the projected financial statement is basically saying, “If you sold everything you produced and spent the amount you said you will spend, this is the outcome that you will get.”
I hope this helps!
@@DynamicDune Thank you!
I have a working capital of 155 and needs some suggestions on how to fix. This round 4 with two products not sure if I want add another but stock out and working capital it’s zero on score card.
Round 2 plzzzz🙏
Sarah,
I started working full time and studying master's at night. I have no time at all to make more videos. Thank you for encouraging me though!
I had 2 products with a deficit in the net margin is that okay?
Sarah,
No, it is not okay. You should never have a negative net margin. In most cases, if you want to have a positive net margin, your contribution margin should always be above 30%. (Ideally, it should be above 36%). The higher the contribution margin the better. However, you must be following the customer buying criteria when trying to increase your contribution margin. Some segments have lower contribution margins in the first 4 rounds. Then, you need to invest in TQM to lower your costs and decrease R&D revision time. After that, you need to increase automation accordingly to further lower costs. Also, make sure that you are not over spending on Accessibility and Awareness. Spend what you can not what you want.
In order to increase contribution margin, you have two main choices. 1. Increase selling price. 2. Decrease cost. If you increase your price by too much, customers will not want to buy your product and sales will decline. However, if you decrease your cost, you will lose nothing. You gotta do a little of both for each segment.
Good luck! If you need online tutoring, please reach out to me by email, DynamicDune@gmail.com
Thanks bud. I droped a like XD
hey how do we decrease deprecriation on assets
How do you calculate the labor cost?
I cannot manage to fix my leverage. My cash positions are great. I don't know where I'm going wrong :[
Anyway you can help me out?
I got a question, I can't do the finance decision until I do the four previous decisions?
Is Capsim bugging you? We will make decisions and apply
best strategies for you,
Just reach out to us on onlinesimulationexperts.com/business-simulations/ and get FREE Capsim Consultation.
Can you help me I ended up my round one with 34.786 emergency loan and 1927 inventory on hand, can you give me an advice how to get rid of it??
Sorry Victor Suwuh, I don't have a simple solution for your case. It will be very difficult to recover from this much emergency loan. Unfortunately, I do not have time to find the solution for you. It is final projects time in my school.
I recommend that you watch my videos to understand the simulation. This will allow you to find the solution and recover. Good luck on your simulation!
Can you do my exam?
Haha, Parminder Singh, that’s cheating!