reply to the students’ response and not the question  in 150 words minimum and provide 1 reference. Respond to the students response as though you are talking to them, use name  

question

Please share three relevant things you have learned last week about your project , and cite sources (maybe documents or data), people or things you met or talked to, to gather information. Thanks. 

students response

 

Three relevant factors to the development of my business plan for a Natural Food Broker within the convenience channel that I have learned this week and had not anticipated:

1. There is very little data on the Food Broker Industry.

Because the food broker industry is difficult to measure because companies tend to be small, private, and regional (Salmans, 1982, para 4).  I had to pivot and look at the driving factors of the food and retail industries, along with consumer trends which drive the demand for food brokers.  Th scope of this is a bigger than initially anticipated.

1. The food broker has two customers.

As I was writing the initial plan, I was entirely focused on the C-store as the customer, and entirely missed the Brand as the actual customer, so I had to go back and re-rewrite some of my plan with this in mind. Although, the C-store customer is a relevant factor, the initial customer is the supplier and that is how a food broker generates revenue.

1. Receivables or the lack of receivable must be considered in the financials.

I met with a reputable natural food broker that has been operating for almost 5 years in the foodservice channel. I interviewed John Hein with The Advance Natural Group to understand how the financials work or pass through from the supplier to the broker. One big call out he made was that there are often times the Supplier does not pay on time. This may have a significant impact on the amount of on-hand cash that is necessary to keep operating month to month.  Paying employees is a major function and greatest expenses a food broker has. He was able to identify about a third of suppliers pay behind schedule and that a solid contract proves to have some effectiveness when attempting to collect. 

Salmans, S. (1982, April 23). Food industrys middlemen. The New York Times. Retrieved

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Assignment Content

Purpose of Assignment 

The materials covered this week distinguish between the different costing methods and provide needed tools for decision making. This case study focuses on determining equivalent units in a production business setting. 

Assignment Steps

Scenario: Davis Skaros has recently been promoted to production manager. He has just started to receive various managerial reports, including the production cost report you prepared. It showed his department had 2,000 equivalent units in ending inventory. His department has had a history of not keeping enough inventory on hand to meet demand. He has come to you, very angry, and wants to know why you credited him with only 2,000 units when he knows he had at least twice that many on hand.

Prepare a maximum 700-word informal memo: 

1.) Respectfully explain to Mr. Skaros why his production cost report showed only 2,000 equivalent units in ending inventory. 

2.) Using a professional tone, explain to him clearly why your report is accurate. 

3.) Please include an example to help explain to him what equivalent units are and how they differ from completed units in inventory.

You may use bullet points in the memo to help guide your explanation.

Please use a reference page and in-text citing in APA format when outside sources are used.

I’ve included 2 slideshows to help with this assignment.